The Canada Apprentice Loan is a government-sponsored programme designed to assist you in completing your apprenticeship in a Red Seal trade.
Canada Apprentice Loan Interest Suspension Update
Effective April 2021, the Government of Canada has suspended the accumulation of interest on Canada Apprentice Loans until March 31, 2023.
More About the Loan
You can earn up to $4,000 in interest-free loans through the Canada Apprentice Loan for each period of technical training. You can use the funds to assist pay for education, tools, equipment, and living expenses, as well as to supplement your family’s income.
The Canada Apprentice Loan provides interest-free loans to registered apprentices to assist them to pay for their education. Apprentices enrolled in a Red Seal trade apprenticeship can apply for up to $4,000 in interest-free loans every period of technical instruction.
Your Canada Apprentice Loan will not need payments, and no interest will accrue until you complete or leave your apprenticeship training programme. Except in Quebec, where alternative support is provided, the Canada Apprentice Loan is offered in all provinces and territories.
What You Should Know
- Apprentices enrolled in a Red Seal Trade apprenticeship programme can receive up to $4,000 each term of technical instruction from the Canadian government.
- Canada Apprentice Loans are available for up to 5 periods of technical training.
- As long as you are confirmed as being enrolled in a Red Seal Trade apprenticeship program, your loan will be interest-free for up to 6 years.
- As long as your loan is interest-free, you are not required to make any payments.
To be eligible, you must meet all of the following requirements:
- be a Canadian citizen, permanent resident, or protected individual;
- be enrolled in a Red Seal Trade apprenticeship programme approved by the province or territory in which you are working as an apprentice;
- be engaged in block release technical training or full-time technical training with a recognized training provider; and
- a successful credit check (required if you are applying for the first time).
You will not be considered if you:
- are a senior in high school;
- are a registered apprentice in the province of Quebec;
- for the same technical training, are obtaining a Canada Student Loan;
- you’ve been told you’re not eligible for a Canada Apprentice Loan or a Canada Student Loan;
- Having received funds for five technical training periods, or
- have previously been granted a 6-year interest-free period.
How to Apply?
The steps for applying for a Canada Apprentice Loan are as follows:
- Find out if you qualify for a Canada Apprentice Loan.
- Create an online account for a Canada Apprentice Loan.
- Online applications are accepted.
- To get your money faster, include your banking details.
- Accept the Canada Apprentice Loan application and repayment terms and conditions.
- Send your application in.
- Your Canada Apprentice Loan online service account allows you to check the status of your application.
- Your application status will be communicated to you via the Canada Apprentice Loan online service.
Deadlines for Applications
You have three months to apply for a Canada Apprentice Loan before your technical training begins.
The last day of your technical training is the deadline for applying for a Canada Apprentice Loan.
Note: You can also download and submit the Canada Apprentice Loan application and agreement (1 383 KB). By the end of your technical training, you must mail your full application and all supporting documentation to the concerned authority.
Keeping Your Canada Apprentice Loan Active
You do not have to make payments on your Canada Apprentice Loan while you are a registered Red Seal apprentice, and no interest will accrue.
- Your registration in a Red Seal Trade apprenticeship programme must be confirmed by your province/territory or technical training provider to remain payment-free and interest-free while you are still in training.
- Interest will begin to accumulate on your loan 12 months after the conclusion of your technical training or 12 months after your province or territory last certified your position as a Red Seal apprentice. This is the last day of your apprenticeship. Furthermore, you must begin making payments on your debt six months after your apprenticeship ends.
The Government of Canada will validate your apprenticeship status with your province/territory or technical training provider and will notify you if your status changes. It is critical that you maintain your contact information current.
How Do You Keep Your Interest-free Status?
If you are returning to technical training: they will confirm that you are enrolled in technical training and that you are not paying interest on your loan if you apply and qualify for Canada Apprentice Loan financing before your Apprenticeship End Date.
If you are not applying for a new loan, you may be able to keep your previous loan(s) interest-free and payment-free as long as we can certify that you are still a Red Seal trainee. They’ll validate your registration with your province/territory of registration and tell you of the results via your preferred method of contact (online/paper). It is critical that you maintain your contact information current.
If you’re not going back to technical training: they will confirm that you are still a registered Red Seal apprentice with your province/territory of registration. They’ll let you know the outcome via your preferred contact mode (online/paper). It is critical that you maintain your contact information current.
If you do any of the following, you will lose your interest-free status and your loan will begin repayment:
- having completed your apprenticeship with the Red Seal Trade;
- aren’t enrolled in a Red Seal Trade apprenticeship programme;
- have completed your lifetime maximum of 6 years of interest-free training (from the start date of your first subsidized technical training); or
- have an account limitation that prohibits you from getting an interest-free period
Repaying Your Canada Apprentice Loan
When the following events occur, it is time to begin repaying your Canada Apprentice Loan:
- You’ve finished your Red Seal Apprenticeship Program;
- You are no longer enrolled in a Red Seal Trade apprenticeship;
- you’ve used up your lifetime limit of 6 years without paying interest; or
- Your Apprenticeship End Date does not validate your registration.
Period of Non-payment
The first six months after you stop being an Apprentice are considered the non-repayment period. You are not required to make payments during this time. You can, however, choose to begin making payments immediately.
The (opens in a new window) Loan Repayment Estimator can help you calculate your monthly payment. The money you pay in addition to your monthly payment goes straight toward the principal of your loan. This shortens the time it takes you to repay your loan and lowers the overall interest you’ll pay over time.
You will be expected to begin making regular loan payments after the 6-month grace period has expired. Before your loan enters repayment, they will tell you via your specified method of contact (online/paper). It’s critical that you keep your contact information up to current on file. If you do not contact them, your loan payments may begin to be automatically deducted from the same bank account where your loans were deposited after the 6-month grace period (if you had arranged for direct deposit).
During the last month of your non-repayment term, you will get a repayment notification in the mail containing your repayment details for your Canada Apprentice Loan. If you have not received anything in the mail, please contact us before your six-month grace period expires.
You should examine every facet of your loan, including:
- what your debt is;
- start of repayment;
- the type and interest rate that will be applied to your loan;
- your bi-weekly or monthly payment amount;
- the date on which your payment will be deducted from your bank account (if you have pre-authorized debit set up);
- How to make payments (if a pre-authorized debit is not set up); and how long it will take to repay your loan
Automatic pre-authorized debit, check, online banking, and telephone banking are all options for making payments. There are several alternatives available to assist you to tailor your loan repayment to your specific circumstances.