Common Questions
Q: Is this program only for professionals or for people who have degrees?
A: No. Any immigrant who will incur costs in order to again work in the occupation they had in their home country may apply. Tradespeople, skilled workers and professionals are encouraged to apply.
Q: Do I have to go back to the same work I did before?
A: No, but you do have to be planning to work in a related field. For instance, if you were a dentist you could apply for a loan to help with the costs of becoming a dental hygienist.
Q: Am I eligible for a loan if I am already working in my field?
A: Yes, but only if you are underemployed (working at a level much lower than someone with your education or experience should be).
Q: Can I use an IAF loan to pay off my credit card?
A: Not usually, but it may be allowed if you very recently paid for accreditation/training costs on your credit card, and can show us that you did.
Q: I want to work in my field, but my first priority is providing for my family. How can an IAF loan help?
A: Loans may be used to help pay short term living expenses while you are attending school or studying for exams.
Q: How much may I borrow?
A: You may borrow up to $10,000. Most people don't need that much, though; the average loan is around $5,000.
Q: What is the interest rate?
A:The rate is currently 4.5% (1.5% above the Bank of Canada's prime rate for business). We are proud we have been able to keep the interest rate low (it is common for similar micro loan programs to charge up to 10% above prime).
Q: Why does IAF charge interest?
A: The interest we charge you helps replenish the loan fund if some of the loans are not be paid back. As well, the money IAF lends out is often money it has borrowed from the bank and is paying interest on.
Q: Who benefits from the interest paid on the loans?
A: We have been able to keep all payments of principal and interest in the loan fund, helping to ensure the sustainability of the loan fund. Future loan recipients will benefit from the interest paid by today's recipients.
Q: Does IAF make money from the loans?
A: No. IAF program are non-profit societies whose operating expenses are covered from other sources. All loan interest goes to the loan fund to provide loans to future applicants, to cover defaulted loans and, if necessary, to pay for the interest IAF pays on the funds it borrows.
Q: How much will my payments be?
A: If you borrow $5,000, pay interest only for two years, and pay interest plus principal for two years:
- Your monthly interest only payments will be about $20.
- Your monthly principal and interest payments will be about $220.
- You will have paid a total of about $5,700 ($5,000 in principal and $700 in interest).
