Immigration Loans Program Canada - Immigration Loan Canada? Know it All
The Immigration Loans Program (ILP), is a Immigration Loan Canada government that renders to eligible immigrants with the access to funding which is otherwise not available to them for settlement in Canada.
These immigrants are mostly refugees who are unable to bear the cost of expenses like that of traveling to Canada, and others, including:
- Transportation Loan
- Assistance Loan
- Right of Permanent Residence Fee (RPRF) Loan
Earlier the Immigration Loans also defrayed the cost of immigration medical examinations (IMEs), but not anymore.
This category now comes under the Interim Federal Health Program (IFHP) and is available to only eligible applicants.
Who is Eligible for Immigration Loan?
The eligibility for an Immigration Loan is as per Section 289 of the Immigration and Refugee Protection Regulations (IRPR).
It states that the loan applicant must be a foreign national who is applying for permanent residence in Canada.
The applicant can also be a Convention refugee or in need of protection for themselves as well as their beneficiaries.
Apart from this, Canadian citizens and permanent residents can also apply for Immigration Loan on behalf of their beneficiary.
The types of beneficiaries are:
- Spouses
- Partners
- Dependent Children
- Other people in a dependent relationship with the applicant
More details on the subject matter can be found in Section R2 and Section R288.
Despite the fact that immigrants in other categories like the family class and federal skilled worker class are also authorized to apply for loan, there is no need for a loan for them because they are obliged to have funds at their disposal as a part of application.
Nonetheless, loan can be granted to these applicants in case of the following:
- Refugee skilled workers (pilot basis)
- Loan as lender of last resort using family class applicants
What is the Process of Qualifying for Immigration Loans Program ?
The migration officers consider the following factors when issuing a loan:
- Applicant has a age of minimum 18 years or above
- Applicant has an employment or transferable skills to secure a job within 3 or 4 years
- The number of dependents an applicant has
- Applicant’s initiative to participate in the labor market
Applicant’s current debt load, verified through the following:
- Global Case Management System (GCMS)
- Immigration Program Accounts Receivable (IPAR)
- other Collection Services
- Higher resettlement needs to become self-sufficient, including:
- Physical or mental conditions requiring long-term treatment
- Below-average settlement potential
- Seniors without company, unlikely to get employment
The migration officer also considers the below mentioned factors while issuing the loan:
- Applicant is able to travel to Canada
- Applicant’s travel fits the humanitarian nature of the Refugee Resettlement Program
- Applicant’s historical rate of repayment is high
- Applicant’s goals can be managed by the financial costs
- Applicant’s loan can be repaid through a contribution in case he is a refugee under JAS
- Based on the IRCC’s humanitarian commitment, the loan is also approved for applicants who might find it difficult to repay the loan.
How to Get Approved for an Immigration Loan Canada?
Under the Immigration Loans Program (ILP), only designated authorities can issue loans. More information can be found in Immigration Legislation (IL) manual chapter 3.
A loan agreement is authorized only when the designated officer certifies the following:
- Approved loan is legally chargeable against account as per section 34 of the Financial Administration Act.
- Every relevant status, regulation, order-in-council, departmental directive, and Treasury Board has been complied with
- The loan recipient is legally of major age (18 years or older)
Important Note: When the forms are signed by the loan applicant in presence of a designated officer, then the forms become legal documents.
Types of Immigration Loans Canada - December 2023 Update
Transportation Loans
Transportation Loans render eligible applicants with the financial support for covering the costs of transportation from overseas to their destination in Canada for themselves as well as their beneficiaries.
The amount also includes approved service fees from the International Organization for Migration (IOM) and other related expenses.
There are some terms and conditions of loan when the travel is only booked through the assistance of the IOM, which if in case is missing then the migration office assists eligible applicants by issuing a transportation loan [IMM500].
It is important to note that any applicant who chooses to book their own travel is not issued a transportation loan.
The following expenses are considered eligible under a transportation loan:
- Transportation from refugees' place of residence to the city from where they may board a flight to Canada.
- Overnight accommodation and meal allowances before departure.
- Cost of travel to Canada by most direct route and most economical rate.
- Any transportation tax
- IOM operational escort (approved by RASO-RRD)
- Inland transportation costs
- Pre-selection processing costs
However, some costs are also considered to be ineligible, which include:
- Excess baggage (more than free baggage allowance)
- Shipping of personal and household effects
- Transportation of Animals
- DNA testing costs
- Medical Interventions to be travel-ready
- Pre-departure medical services covered under IFHP
- Costs associated with COA program
Assistance Loans
Another type is ‘Assistance Loans’ which financially assist the eligible applicants to bear the costs associated with their initial resettlement, labor market access needs, or both.
Like all other loans, grant of assistance loans is also based on the applicant's ability to repay the loan and designated officer’s satisfactory assessment of the same.
Let’s understand in detail, what is included in assistance loans:
- Basic Needs - It covers the costs of rent, utility deposits, food, clothing, incidental expenses, and household items as a one-time provision.
- Labor Market Access Needs - It covers the costs of items and services needed for gaining employment in Canada like tools, safety equipment, examination for a license, short-term child care.
Right of Permanent Residence Fee Loans
The Right of Permanent Residence Fee Loan is granted to provide financial aid to foreign nationals who are seeking permanent residence in Canada for themselves or their beneficiaries.
The Canadian citizens who are applying and seeking a loan on behalf of a beneficiary can also apply for this loan.
However, refugees and the members of humanitarian-protected persons abroad need not apply for this loan as they are exempt from paying the RPRF.
In order to approve an RPRF loan, the Right of Permanent Residence Loan, Transportation Loan, Admissibility Loan form, along with Terms and Condition Loan form may be used.
For more details on RPRF Loan, click here! (Always use official resources for the latest updates on any immigration related matter).
Other than these, there are some exceptional circumstances for which Immigration Loans are granted to the applicants.
How to Repay the Loan? - Mode and Duration
The loan recipient has to repay the complete loan amount in consecutive monthly installments according to Subsection 291(2) of IRPR
.
The repayment of the loans begins after the 12th month from issuance of the loan and depending on the amount is paid accordingly:
|
Loan Amount |
Maximum Repayment Duration |
|
$1 - $1,200 |
36 months |
|
$1,201 - $2,400 |
48 months |
|
$2,401 - $3,600 |
60 months |
|
$3,601 - $4,800 |
72 months |
|
Above $4,801 |
96 months |
Notice of Payment
IRCC Loans and Accounts Receivable creates a loan account for recipients using the unique client identifier (UCI) as the account number, with the process duration varying based on the loan type.
The establishment of the account requires documentation, such as an invoice from a transportation company for the listed individuals' travel costs and confirmation of their arrival in Canada, which takes some amount of time.
Payments made at immigration offices or directly to IRCC Loans and Accounts Receivable are credited to the respective account.
Recipients are informed of their loan amount and minimum monthly installments. Those wishing to settle their loans before account establishment can contact Collection Services for assistance.
Modes of Payment
The loan recipient can repay the loan in any of the following ways:
- Certified cheque
- Credit Card
- Directly through Participating Financial Institution
- Internet Banking through Participating Financial Institution
- Personal Cheque
- Postal or Money Order
Please note that all payments ought to be made in Canadian Funds and the cheques are payable to the Receiver General for Canada.
According to IRPA Subsection 147(2), the repayment of a loan can also be done through a payroll deduction scheme after the Minister's authorization.
Deferral of Loan Payments
In certain circumstances, a collection officer has the authority to grant a deferral, payment variation, or repayment period extension for loans, as outlined in subsection R292(2).
Convention refugees and members of the humanitarian-protected persons abroad class resettled in Canada may qualify for a deferral of loan payments for up to 2 years, while other eligible individuals may receive a deferral for up to 6 months.
It's important to note that a deferral is not automatic, and loan recipients unable to make full, regular payments must be promptly referred to Collection Services when approaching an immigration office in Canada.
This is especially crucial for those sponsoring family dependents from abroad, as they need to demonstrate non-default on loan payments to support their sponsorship requests.
In cases of requested payment deferral, a designated officer must notify Collection Services. Additional details can be found in subsection R292(2) of IRPA.
Additional Resources for Loan Applicants
When granting a loan, a designated officer is responsible for ensuring that the loan applicant comprehensively understands the implications and nature of the loan agreement.
The legal responsibilities and obligations tied to the repayment terms and conditions must be clearly communicated to the loan applicant.
To prevent any potential misunderstandings, the designated officer refers to the terms and conditions or the reverse side of the loan agreement, providing detailed information on the loan terms, payment options, and other relevant details for counseling the loan applicant.
By signing the loan agreement, applicants confirm that they are of legal age (18 years or older), have a clear understanding of the associated terms and conditions, and commit to adhering to the specified terms for loan repayment.
Immigration Loan Program Limit
In migration offices where the International Organization for Migration (IOM) organizes travel arrangements for refugees chosen for resettlement, the transportation loan is capped at CAN$15,000.
This limitation is applicable because the Department of Immigration, Refugees, and Citizenship Canada (IRCC) covers any additional fees as outlined in the memorandum of understanding (MOU).
It's important to note that this $15,000 loan maximum does not apply to other immigrant classes.
Conclusion
The Immigration Loans Program (ILP) in Canada serves as a vital government initiative, offering eligible immigrants, particularly refugees, access to funding for settlement.
The program encompasses various loan types, such as Transportation Loans, Assistance Loans, and Right of Permanent Residence Fee (RPRF) Loans, each addressing specific financial needs of applicants.
Eligibility criteria are defined by Section 289 of the Immigration and Refugee Protection Regulations, extending to foreign nationals, Convention refugees, and those seeking protection.
While loans are generally not required for certain immigrant classes, exceptions exist, such as refugee skilled workers and family class applicants facing exceptional circumstances.
The loan approval process involves careful consideration of factors like the applicant's age, skills, and resettlement needs.
Repayment follows a structured schedule, and deferral options are available under special circumstances.
The ILP underscores its commitment to supporting immigrants in building a new life in Canada, providing a crucial financial bridge for those in need.
Frequently Asked Questions (FAQs)
Who is eligible to apply for an Immigration Loan in Canada?
Eligibility is based on Section 289 of the Immigration and Refugee Protection Regulations, encompassing foreign nationals, Convention refugees, and those seeking protection. Canadian citizens and permanent residents can also apply on behalf of eligible beneficiaries.
What types of loans are available under the Immigration Loans Program (ILP)?
The ILP offers various loans, including Transportation Loans, Assistance Loans, and Right of Permanent Residence Fee (RPRF) Loans, each designed to address specific financial needs of applicants.
Can immigrants in certain categories, like family class, apply for loans?
While generally not required, exceptions exist for refugee skilled workers and family class applicants facing exceptional circumstances.
How is the loan approval process determined?
The approval process considers factors such as the applicant's age, employment skills, number of dependents, and resettlement needs, ensuring a comprehensive assessment.
What expenses are covered under Transportation Loans?
Transportation Loans cover costs related to travel to Canada, including transportation, accommodation, meal allowances, and other associated expenses, but some costs like excess baggage are considered ineligible.
What is included in Assistance Loans?
Assistance Loans cover basic needs like rent, utility deposits, food, clothing, and household items. Additionally, they may include support for labor market access needs, such as tools and safety equipment.
How long do loan recipients have to repay the borrowed amount?
Repayment begins after the 12th month from loan issuance, with the duration varying based on the loan amount, ranging from 36 to 96 months.
What modes of payment are accepted for loan repayment?
Loan recipients can repay through certified cheque, credit card, direct payment through participating financial institutions, internet banking, personal cheque, postal or money order, all in Canadian funds.
Is there an option to defer loan payments?
Yes, under special circumstances, a collection officer may grant a deferral, payment variation, or repayment period extension, with specific conditions outlined in subsection R292(2).
How does the ILP contribute to refugees' resettlement in Canada?
The ILP serves as a crucial financial bridge, offering funding for refugees' settlement needs, including transportation, initial resettlement, and permanent residence fees, facilitating their integration into Canadian society.
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