Indian students planning to pursue higher education in Canada will soon face higher financial requirements for securing a study permit. Starting September 1, 2025, applicants must show proof of at least CAN $22,895 approximately Rs.14 lakh to cover living expenses in their first year, excluding tuition and travel costs.
The announcement was made by Immigration, Refugees and Citizenship Canada (IRCC) on June 2, 2025, as part of the federal government’s annual adjustment of financial thresholds in line with Canada’s cost of living.
Why the Change?
The updated financial requirement reflects inflation and rising living costs across Canada. This policy aims to ensure that international students can support themselves during their stay without undue hardship and to minimize the risk of relying on unauthorized work or public resources.
The new requirement will apply to all new study permit applications submitted on or after September 1, 2025, and covers students in all provinces and territories outside Quebec.
Impact on Indian Applicants
India continues to be Canada’s top source country for international students. However, 2025 has already seen a slowdown in the number of study permits issued to Indian nationals due to recent immigration tightening. The new financial rule may further influence application trends, especially for students from middle-income families.
Minimum Funds Required by Family Size
The living expense requirement also scales based on the number of dependents accompanying the student. Below is the breakdown:
| Family Members (including student) | Minimum Funds Required (CAD) |
| 1 person | $22,895 |
| 2 people | $28,502 |
| 3 people | $35,040 |
| 4 people | $42,543 |
| 5 people | $48,252 |
| 6 people | $54,420 |
| 7 people | $60,589 |
| Each additional member | $6,170 |
These amounts are mandatory for visa approval and are assessed alongside tuition fees and travel costs. Applicants who submit their application before September 1, 2025, will still be assessed under the previous requirement of $20,635 for a single applicant.
What Can Be Used as Proof of Funds?
IRCC accepts a range of documents to prove financial capacity, including:
- A Canadian bank account in the applicant’s name (with transferred funds)
- A Guaranteed Investment Certificate (GIC)
- Student or education loan letters from recognized banks
- Bank statements for the last four months
- A bank draft convertible to Canadian dollars
- A letter of financial support from an individual or institution
- Scholarship or financial aid documents from a Canadian school or sponsor
What Students Should Do Now
Students planning to apply for a Fall 2025 or Winter 2026 intake are advised to review their financial documentation well in advance and ensure they meet the revised thresholds. Applying with incomplete or insufficient proof of funds could result in delays or rejections.
As Canada continues to adjust its immigration policies to balance student inflows with economic and social pressures, early preparation and professional guidance remain key to a smooth application process.