Financial Woes for Nepalese Students trying to study in Canada ! The Real Picture !

Financial Woes for Nepalese Students.

In recent weeks, we have seen a concerning number of rejections for  Canadian study permits citing financial incompatibilities. So, today we decided to investigate if the financial woes are really true or if it is a lack of proper documentation demonstrating financial capabilities to the visa officer which causes these rejections. Regarding this, we communicated with Mr.Prakash Regmi, Student Coordinator at Goreto consultancy(one of the leading Canadian Education consultancy in Nepal).

According to him, the major reason for financial rejection is a lack of trust that the person has sufficient cash in his account to pursue his further study. This lack of trust arises when cash is shown in an account without a long statement. But he argued that this situation arose due to the financial and economic structure of Nepal. In Nepal, the average interest rates offered by small cooperatives and development banks are much higher than the interest rates offered by A-grade commercial banks. This has allured the general Nepali population to invest and save their capital in these smaller financial firms rather than the A-listed Banks. It has created problems while demonstrating financial resources for study in Canada.

The High Commission primarily trusts A-grade commercial banks for illustrating financial resources. So, people are forced to move their finances from these smaller institutions to commercial banks. Also, a family has capital in different banks and they move to a primary account for illustrating their financial capabilities. While doing so, a long bank statement with a heavy cash hold is difficult to illustrate and without illustrating so financial capabilities of an individual have been in constant question for the high commission. Because of this, many students are now preferring education loans even if they are financially capable. Taking an education loan has been a tedious and very time-consuming job for students and has increased the stress among students. These loans also have very high-interest rates and though students would have already paid their first-year tuition fee they have to pay high interest on these loans, as soon as the loan is dispersed, just to show their financial capabilities.

However, despite these financial hurdles, almost 1200 students got their Canadian study permits in 2021. Though these numbers may not seem large, compared to the pre-pandemic years it is a significantly higher number. And even if we are seeing a drop in the number of study permits in recent times. Mr.Regmi hopes that things will get better in the upcoming months and Canada will still be one of the top study destinations for Hardworking, Talented, and Deserving Nepalese students. Saying this, Mr.Regmi urged the Canadian high commission to look above the given situation and do the needful.

So, we conclude that students face different problems  while applying in Canada but the most significant of them has been the financial one. And even after being financially capable, getting rejected for the study permit has been the biggest woe for Nepalese students in recent times.