Scenario: a study-permit applicant who can't show large liquid funds asks whether a loan sanction letter works instead — and whether an approved-but-undisbursed loan can later be cancelled.
What group members shared:- Loans are an accepted funding source. For a loan-funded file, submit the sanction letter together with the loan statement — the letter alone is weaker evidence.
- SDS changes the math. One member funded through a loan but didn't even upload the sanction letter or show liquid funds — under SDS, the paid first-year fees plus GIC satisfied the financial requirement and the approval came on time. If you can qualify for SDS, the funds question largely disappears.
- Non-SDS needs the full financial picture. The applicant here planned non-SDS (unable to prepay two semesters) — in that stream, the sanction letter + statement combination matters, alongside whatever family funds exist.
- On cancelling an approved loan later: the thread didn't resolve this — cancellation terms and processing charges are bank-specific, so confirm with the lender before sanctioning (many Indian banks charge processing fees that aren't refunded).
The practical takeaway: a sanctioned education loan (letter + statement) is legitimate proof of funds; and if you can stretch to SDS requirements (first-year fees + GIC), the funds burden drops dramatically.