When planning to study abroad, proof of funds is one of the most critical components of the application process. It refers to documented evidence showing that a student has the financial means to cover tuition fees, living expenses, travel costs, and other associated costs for the duration of their course. Visa officers and academic institutions use this information to assess a student's financial preparedness. In this article, we will see some guidelines regarding proof of funds.
What Qualifies as Proof of Funds?
If you're wondering what is required for proof of funds, the answer depends on the country and the institution. However, most accept the following documents:
- Education loan sanction letters from recognised lenders such as Credila
- Recent bank statements showing a stable and sufficient balance
- Fixed deposit receipts (FDRs)
- Sponsorship affidavits supported by the sponsor’s income documents and bank statements
In general, these documents must demonstrate that the student has access to liquid or near-liquid assets that can be readily used for education expenses.
Minimum Fund Requirements
Each country has its own rules regarding how much money a student must show as proof of funds.
Here are a few examples:
- Canada: Students must show funds to cover one year of tuition and living expenses (as of 2025 CAD 20,635 as GIC for living + tuition).
- UK: Requires proof of funds for one year of tuition and nine months of living expenses (around £1,483 per month in London as of 2025).
- Germany: Requires a blocked account with a fixed amount (€11,904/year as of 2025).
Additionally, the duration of your course directly impacts the total amount you must demonstrate. It’s also essential that the funds remain in the account for a consistent period, typically 3 to 6 months, to establish financial stability.
Using an Education Loan as Proof of Funds
One of the most convenient ways to meet the proof of funds requirement is through an education loan sanction letter. Overseas education loans from recognised lenders like Credila are accepted by most embassies and universities worldwide.
To qualify as valid financial proof, the sanction letter must clearly include:
- The loan amount sanctioned
- The student's full name and passport details
- The name of the institution where the loan is approved
- The loan tenure and disbursal terms
- Official signature and seal of the lending institution
Since this letter indicates guaranteed access to funds, it adds credibility and simplifies the visa process for many students.
Dos and Don’ts for Submitting Financial Proof
Do’s:
- Use official documents printed on letterhead with stamps or signatures
- Make sure documents are clear, legible, and recent
- Submit consistent records, especially if you're submitting multiple documents (e.g., bank statements, loan letter)
Don’ts:
- Avoid submitting scanned or tampered documents
- Do not include incomplete statements or unexplained large deposits
- Refrain from submitting financial proof from unverified or unknown sources
Common Mistakes to Avoid
Students often overlook minor details that can lead to rejections or delays:
- Outdated bank statements (more than 30–60 days old)
- Ignoring currency conversions when calculating and submitting fund amounts
- Failing to check country-specific requirements (e.g., blocked accounts for Germany, GIC for Canada)
- Incorrect document formatting, missing account holder’s name or incomplete transaction summaries
Conclusion
Establishing proof of funds is not just about showing funds; it's about demonstrating financial stability, authenticity, and readiness for studying abroad. Students should plan this in advance and consult with their lender to prepare the necessary documents per the destination country's guidelines. If you’re using an education loan to support your studies, make sure your sanction letter from Credila or any other recognised institution is accurate, up to date, and includes all required details.
Disclaimer:
T&C apply. Credila Financial Services Limited (Formerly known as HDFC Credila Financial Services Limited). The education loan facility provided by Credila Financial Services Limited will be at the sole discretion of the Company and within the Company's prescribed credit and underwriting norms/guidelines prevailing at the time of processing and disbursing the education loan. The Company maintains the right to change the interest rate at any time and at its sole discretion, without prior notice.
