Loan Terms & Conditions

Here’s what you need to know about borrowing from IAF and paying your loan back. If you are a refugee/ protected person in Canada, click here for information on the loan terms and conditions that apply to your loan.

  • Up to $10,000 may be borrowed; most people borrow around $6,000.
  • The annual interest rate is RBC prime rate plus 1.5% and is set quarterly. The interest rate on IAF micro loans is currently 4.2%.
  • You will need to sign a promissory note.
  • Loan funds are advanced as you make progress on your licensing/learning plan.
  • Payments must be made monthly and will be taken automatically from your bank account.
  • Your loan repayment schedule will depend on the length of your approved learning plan. Generally, your payments will be in two stages:
    – interest only while you are completing your licensing/learning plan (to a maximum of two years), and
    – principal and interest for the next two years
  • Payments of interest only will start the month after you receive the loan funds and will be based on the amount borrowed at that time.
  • You will have to start making principal payments within 90 days if you:
    – find employment in your field
    – complete your licensing/learning plan, or
    – decide to not continue with your licensing/learning plan
  • Loans may be paid in full at any time with no penalty. “Paid in full” means that all principal, interest and any additional charges that might have been charged against the loan have been received.
  • Your loan will be registered with a credit bureau so that you can build your credit rating.
  • There are no processing fees on loans.

Since approval of your loan is based on your character, you will be required to provide references, demonstrate initiative, have a strong licensing/learning plan in place, and be willing to repay the loan.


Video: Understanding your Loan Repayment

Learn more about the important terms of borrowing from IAF and what you can expect after your IAF loan is approved.