USA

FINANCIAL DOCUMENTS REQUIRED FOR STUDY ABROAD

As a student or a parent, you would definitely want to know amidst the lot of documentation, what are the financial documents required. Financing your study abroad is not an easy task. Many students look out for scholarships and other benefits available. Others resort to student loans available. The financial planning in this aspect is quite extensive. Universities abroad ensure that once admitted the student does not fall out to inability to meet financial requirements of the course or not being able to live comfortably through the duration of the course. To ensure the same, they ask for specified list of documents, that validates the same. Also these financial documents are an integral aspect of obtaining student visa. While the specifications may vary from one country to another, the documentation does follow a standardised format. The following is basic information regards the different documentation you require as a study abroad student, some includes formats or samples and majorly the ‘must-know’ classified information.

WHAT IS PROOF OF FUNDS (POF) OR FINANCIAL CAPACITY?

To begin with, the first and foremost requirement for a Student Visa Application is the Proof of Funds or the Financial Capacity Certificate. As explained, students are required to provide evidence or proof that they are capable of paying the normal fees and living expenses during the course duration and stay in their country. The costs include two chief components:

1. Course fee and other charges Universities request proof of income to ensure that you would be able to pay the fee in future as well. This might at times require sponsorship letters or Affidavit of Support. Some universities require proof of funds available in terms of a minimum balance requirement in special accounts (ex. Germany, Netherlands, Canada, etc.)

2. Living Expenses Most countries have a specific minimum living expense requirement that they expect the students to be able to bear without difficulties. Most European Countries ask you to present with account statements proving that you have the necessary funds. In USA, they don’t have a specified amount for minimum monthly expenses, in such cases they ask for account details to prove that they can

 

TYPES OF DOCUMENTS ACCEPTED UNDER PROOF OF FUNDS

There is no standard list of documents that are required by countries abroad. As per the student visa requirements for countries, different countries accept different documents as proof of funds. Here is a list of what all they can be, along with samples wherever necessary. Unless a specific amount/deposit is requested, more than one proof can be combined with one another. The proof of funds may be:

 

1. Bank Account Statements:

The universities or student visa consulates may require students to submit scanned copies of physically signed and stamped bank account statements of your/your parents/ your spouse or your sponsors’. Find the necessary details as per the country guidelines.

2. Scholarship Letters

If you have obtained a scholarship, the scholarship letter serves as a letter of financial capacity. The same applies to Government grants received as well.

3. Affidavit of Support/ Sponsorship

This document is a financial support document and asked very seldom, to be specific in the USA and Australia. An Affidavit of Support or Sponsorship is a notarized document on a Stamp Paper of a low denomination, and mentions that another person (parents/ spouse/ relative) would be sponsoring your education and paying your fees and living expenses.

4. Bank Letters

This is a form of bank capability certificate. It states the balance in the account as per the desired country currency as per the current conversion rates prevalent.

5. Loan Approval/ Disbursement Letter

In case you have applied for a student loan, the loan approval or disbursement letter also acts as a proof of funds. Keep in mind that the letter should be on the bank’s letterhead, duly signed and stamped. It should clearly specify the amount of loan approved and the students name alongwith a promise to disburse the amount as and when specified. 6. Loan Capability Certificate This document is slightly different from a Loan Approval Letter. It is often asked by universities in the USA at the time of admission. As the name suggests, it is a “Capability Certificate”, given by banks / financial institutions which suggests that they would be willing to provide a loan to the student should he get admitted to the University Abroad.

7. CA Certificate

As a chartered accountant holds external signing authority, your CA can issue a letter specifying the assets held by the student/sponsor as well as the cumulative liabilities. The document must be duly signed and stamped by the CA. There is no fixed format as each CA has own formats.

8. Property Evaluation Report

In case a student loan has been procured against a property, you need to attach the Property Evaluation letter by the Bank alongwith the Loan Approval letter. It includes pictures of the property, size and other relevant details, proof of ownership etc. It is more commonly asked for in New Zealand and Australia visas.

9. GPF/ EPF Statement

confirming the ability to withdraw Many countries also accept the funds available in your/ parent/guardian’s Provident Fund Account. These are an official statement issued by the Provident Fund Disbursing Authority clearly stating the number of funds available in the account along with the ability to withdraw. In case there is a variation in the amount the person can withdraw, the letter should clearly mention the amount that can be withdrawn. For more clarity on any one of the following, please connect with us, online or offline at Whizstorm