Financial Documents Required for Studying Abroad

Studying abroad is an exciting experience for international students. However, applying for top study-abroad countries requires extensive preparation and analysis. From applying to the university, student visa, and scholarships, students need to provide appropriate documentation to the concerned authorities. Apart from academic transcripts, test certificates, and proof of work experience, students need to provide various financial documents to specify their economic stability to live and study abroad.

What are the documents required to study abroad? The key important financial documents required for studying abroad include bank account statements, loan approval or disbursement letters, scholarship letters, affidavits of sponsorship, property evaluation reports, chartered accountant certificates, GPF or EPF statements, and other documents. This article covers all the important financial documents required for studying abroad for international students. Students who are planning to study in top world universities can read the complete article to get an idea of the list of documents required for top study-abroad countries.

What Documents Do You Need to Study Abroad?

Here’s a list of financial documents international students require to apply for top universities abroad. The type of documents might differ from country to country. Some universities may have specific financial requirements for popular courses and international students. Students can check the official website of the university to check any additional requirements for financial status. For student visa proceedings, check the government website of the countries.

Financial Statements for Studying Abroad

Bank Account Statements

To demonstrate their ability to manage university tuition fees, living expenses in the country, and other miscellaneous expenses, students have to provide their bank account statements for a specified period. Some important characteristics of bank statements are as follows:

• Most universities require a bank statement for the past 6 months showing a stable and adequate balance. However, the period may vary depending on the university and country.

• The statement should be a scanned copy of the original document duly stamped by the bank. Most universities do not accept email statements.

• Students need to translate the official statement into the English language.

• The country like Sweden do not accept bank statements from current account holders.

Also Read: Changes in rules and regulations for student visa abroad

Scholarship Letters

In case the student receives any government or university-funded scholarship, attach a copy of the letter detailing the amount awarded, duration, and any conditions depicting your financial capacity. If the scholarship is partially funded, both a bank statement and scholarship letter are required to accomplish your financial stability. Learn more more scholarships to study abroad for Indian students.

Also Read: Popular Study Abroad Scholarships

Loan Capability Certificate

A loan certificate is a pre-requisite for international students who wish to study in USA. Students cannot apply for I-20s in the United States without a loan capability certificate. The bank issued this capability certificate, indicating that they are willing to provide student loans if the candidate gets selected to the university abroad. A loan capability certificate should include the following:

• Name of the candidate

• Amount of the loan eligibility

• The letter should be duly authenticated by the bank

• The bank's willingness and apparent commitment to approve a loan

Also Read: MS in Abroad

Loan Disbursement Letter

Students can submit their loan approval letter as proof of their financial capability. Students can easily get it from their respective banks depicting the amount of loan received as financial assistance to study abroad. A loan disbursement letter should include the following:

• The letter should be duly stamped and signed by the bank head

• The name of the candidate, the amount sanctioned, the loan agreement, and the repayment schedule should be clearly mentioned

• Should mention “The Loan of Rs. _____________ has been fully sanctioned and all terms and conditions are completed except disbursement.”

Affidavit of Sponsorship

An affidavit of sponsorship is a legal document that affirms that another person like parents, guardians, relatives, or others will sponsor your education and living expenses while studying abroad. Countries like the US and Australia ask for this sponsorship certificate as proof of your financial support to study in the country. An affidavit of sponsorship should include the following:

• Sponsor’s relationship with the student

• The income proof of the sponsor

• Commitment to cover all expenses

• This document must be notarized and on stamp paper

Also Read: MS in Management Colleges Abroad

Bank Letters

Students who are interested in studying abroad should attach the “Bank Letter” covering the details of the nature of the bank account and the account balance available. The bank letter should be duly signed and stamped by the Bank’s official letterhead. A bank letter should include the following:

• Name of the account holder

• The type of account (savings/ current/ joint)

• The balance in the account at a conversion rate of USD

CA Certificate

Many countries ask for a Chartered Accountant Certificate specifying the list of assets (land, property, gold, bank balance, fixed deposits, shares, bonds, etc.) and liabilities of the candidates. The letter should be duly signed and stamped by an authorised CA. There is no fixed format for a CA certificate as most CAs have their own certificate format.

Property Evaluation Report

In case the student has applied for a loan against their property, then the candidate is required to provide a “Property Evaluation Report” along with the loan approval letter. This letter is commonly required in universities in Australia and New Zealand and is generally prepared by a competent authority (the bank/ financial institution in case of a student loan). The report should contain the following details:

• Official property valuation reports

• Proof of ownership

• Property pictures

GPF/ EPF Statement

Students can also use the money available in their guardian’s Provident Fund (PF) account to demonstrate their financial abilities. In the case of PF funds, the authority disbursing the provident fund should clearly indicate the amount of the fund, the number of funds available in the account along the ability to withdraw. Some important considerations of the GPF/ EPF Statement include:

• Name of the account holder

• Relationship of the account holder with the student

• The availability of the funds and available withdrawable limits

• The letter should be authorised by the Provident Fund Disbursing Authority’s Official Letterhead

• The nature of the withdrawals should be clearly stated as “non-refundable/ permanent”

Also Read: Study MIS Abroad

Why is Financial Documents Required for Studying Abroad?

Financial documents are a critical part of the application process for studying abroad. Here are some of the significant reasons why financial documents are required to study abroad:

• Students can use financial documents to demonstrate their financial abilities to live and study in foreign countries. In most countries, universities and immigration authorities demand financial documents as proof to cover tuition fees, living expenses, and other related costs to study abroad.

• Most countries require proof of funds like bank statements, letters, scholarship letters, and sponsorship documents for student visas.

• Many colleges seek financial guarantees to cover tuition costs and the cost of living internationally.

• Appropriate proof of funds helps in compliance with the financial regulations of the host country.

Also Read: Benefits of Studying Abroad