How To Apply For Canada Apprentice Free Loan+Repayment Basic – Everything You Need To Know.
The Canada Apprentice Loan is an initiative of the Government of Canada to help you complete your apprenticeship in a designated Red Seal trade.
With the Canada Apprentice Loan, you can get up to $4,000 in interest-free loans per period of technical training. You can use the money to help pay for tuition, tools, equipment and living expenses, to cover forgone wages or to help support your family.
Who Can Apply?
You must meet all these five (5) requirements below:
- Be a Canadian citizen, permanent resident, or protected person
- Be registered in a designated Red Seal trade in your province or territory
- Be enrolled in block-release technical training (or full-time equivalent) with an approved school or training provider
- Pass a credit check (first-time applicants only)
- Not have used up your lifetime maximum number of training periods
Canada Apprentice Loan Repayment Basics
Repaying the Canada Apprentice Loan is straightforward.
When Do You Start Paying?
The loan is interest-free while you’re in technical training. You also don’t have to make payments during a grace period after training ends.
What Happens Next?
After your payment-free period ends: Interest starts to build up, and You’ll make regular monthly payments.
The Government of Canada sets the repayment schedule. If you go back for more technical training before you start repaying, you can apply for another loan period—up to your lifetime maximum.
Four (4) Common Mistakes to Avoid
- Applying for a non-Red Seal trade. Only designated Red Seal trades are eligible. Always check your trade before you apply.
- Missing the application deadline. You must apply for each training period. Late applications can be turned down.
- Thinking it’s a grant. This is a loan. You will have to pay it back after the grace period.
- Mixing funding the wrong way. You can’t get a Canada Apprentice Loan and a Canada Student Loan for the same training period.
In-training support
You will not have to make payments on your Canada Apprentice Loan, and no interest will accumulate until after you complete or leave your apprenticeship training program. The Canada Apprentice Loan is available in all provinces and territories except Quebec, where an alternate support is available.
How To Apply online
Visit the Canada Apprentice Loan Online Service for more details and to apply online for quicker service. Visit Support for apprentices for information on more programs available to help apprentices complete their training and for employers to hire and train apprentices.
Frequently Asked Questions
Q: How much can I borrow with the Canada Apprentice Loan?
You can get up to $4,000 for each period of technical training, with a lifetime maximum of $20,000.
Q: Is the Canada Apprentice Loan interest-free?
Yes. You pay no interest while you’re in technical training and during the grace period after training ends.
Q: Do I need a credit check?
Only if you’re applying for the first time. After that, you don’t need another credit check.
Q: Can I apply if I live in Quebec?
No. Quebec has its own financial aid for apprentices, so the Canada Apprentice Loan isn’t available there.
Q: What if I already used five loan periods?
You can’t get more Canada Apprentice Loans after you reach the five-period limit.
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