The Immigration Loans Program (ILP) provides eligible immigrants, who
are mainly refugees selected for resettlement to Canada, with access to
funding that would otherwise not be available to them. Loans are used
to cover a number of expenses, including travel to Canada and other
costs associated with resettlement.
The updated instructions include new payment and collection information, per the amended ILP regulations; changes to the transportation loan process; updates to assessing the need for and the ability to repay a loan, including counselling for loan applicants; and a new process for requesting Resettlement Assistance Program (RAP) contributions from within Canada for transportation loans as well as assistance loans.
Eligibility for an immigration loan
Depending on the purpose, section 289
of the Immigration and Refugee Protection Regulations (IRPR) specifies
that a loan applicant may be a foreign national applying for permanent
residence under any category or a Convention refugee or person in need
of protection and their beneficiaries. In addition, Canadian citizens
and permanent residents may apply for a loan on behalf of a beneficiary.
Section R288
lists the types of beneficiaries, for example, spouses, partners,
dependent children, and other people in a dependent relationship with
the loan applicant. Definitions are in listed in section R2.
Although immigrants in other categories (such as the federal skilled
worker class and family class) are authorized to apply for loans, they
are obliged to have funds at their disposal and thus would not need an
immigration loan.
As an exception, a loan may be authorized to these applicants in the following circumstances:
- skilled workers who are also refugees (on a pilot basis)
- family class applicants for whom the Immigration Loans Program (ILP) is the lender of last resort.
Payment and collection of immigration loans
A loan recipient is expected to repay the loan in full with consecutive monthly instalments and in accordance with the repayment schedule set out in subsection 291(2) of the Immigration and Refugee Protection Regulations (IRPR). Monthly instalments are calculated according to the amount borrowed.
Repayment times
Clients must begin repayment after the 12th month from the issuance
of the loan, and, depending on the amount borrowed, loans must be repaid
as follows, starting after the day the loan becomes payable:
- loans up to but not exceeding $1,200 within 36 months
- loans over $1,200 but not exceeding $2,400 within 48 months
- loans over $2,400 but not exceeding $3,600 within 60 months
- loans over $3,600 but not exceeding $4,800 within 72 months
- loans over $4,800 within 96 months
Notice of payment
IRCC Loans and Accounts Receivable establishes a loan account in the
name of the loan recipient, using the unique client identifier (UCI) as
the account number.
Depending on the type of loan requested, several months may lapse
before a loan account is established. For example, before a loan account
is established, IRCC Loans and Accounts Receivable requires the invoice
from a transportation company for the transportation costs for the
people listed on the loan and a confirmation that the people listed have
arrived in Canada.
Payment received at either an immigration office in Canada or at IRCC
Loans and Accounts Receivable is recorded as a credit to the account.
IRCC Loans and Accounts Receivable notifies loan recipients about the
loan amount and the minimum monthly instalments required. Loan
recipients who wish to pay off their loans before the account is
established may do so by contacting Collection Services.
Methods of payment
A loan recipient is entitled to make loan payments using any of the following methods of payment:
- personal cheque
- certified cheque
- postal or money order
- credit card
- directly at participating financial institutions
- internet banking through participating financial institutions
Payments must be made in Canadian funds. Cheques must be made payable to the “Receiver General for Canada”.
Payroll deductions
According to subsection 147(2)
of the Immigration and Refugee Protection Act (IRPA), the Minister may
authorize the repayment of a loan by means of a payroll deduction
scheme.
Deferral of loan payments
Under special circumstances, a collection officer may grant a
deferral of loan payments, a variation of payments or an extension of
the repayment period. See subsection R292(2) for more information.
For Convention refugees and members of the humanitarian-protected
persons abroad class who have resettled in Canada, the deferral of loan
payments may be for up to 2 years. For any other eligible person, the deferral of loan payments may be for up to 6 months.
A deferral of loan payments is not automatically provided. A loan
recipient who approaches an immigration office in Canada because they
are unable to make full, regular loan payments must be immediately
referred to Collection Services.
The immediate referral of loan recipients who are requesting a
deferral of their loan payments is particularly important for those
wishing to sponsor family dependants from abroad. These people need to
satisfy the designated officer reviewing the family class sponsorship
request that they have not defaulted on their loan payments to
demonstrate their ability to support family dependants. Where a deferral
of loan payments is being requested, a designated officer must notify
Collection Services.
Change of address
A loan recipient must notify Collection Services of any change of
address within 10 calendar days. The loan recipient may report a change
of address as follows:
- in person or in writing to one of the following:
- immigration authorities in the immigration office in Canada, in the area in which they are residing
- Collection Services
A loan recipient must quote their loan account in all correspondence.
An immigration office in Canada that receives any new information on a
loan recipient’s change of address should notify Collection Services.
Recovery of delinquent loans
Section A145
authorizes the recovery of any delinquent payments on loans on behalf
of the Government of Canada. For the purposes of the Immigration Loans
Program (ILP), the Chief of Collection Services, Finance, National
Headquarters (NHQ), has been delegated responsibility for the recovery
of delinquent loans.
Death of a loan recipient
In the event of the death of a loan recipient, the designated officer should immediately notify Collection Services.
Where a loan recipient has left Canada
If a designated officer becomes aware that a loan recipient with an outstanding loan balance has left Canada permanently, the officer must send an email to Collection Services and include the client’s biographic data and new address (if known) as well as the immigration loan number or numbers.
Arranging transportation from overseas or in Canada without the assistance of the International Organization for Migration (IOM)
In exceptional circumstances where there is no IOM presence (such as
in Moscow), the use of the Right of Permanent Residence Loan,
Transportation Loan, Admissibility Loan form [IMM 0500] can be used to
facilitate travel, if the air carrier or travel agency agrees to be paid
after the fact, through invoicing IRCC. In these cases, officers are to
follow these instructions:
- During an eligibility interview, the migration officer must assess the applicants’ ability to repay the loan.
- If the officer determines the applicants should be able to repay the loan, the officer counsels the applicants regarding loan repayment and provides the terms and conditions of the loan to the applicants.
- Once the applicants have been counselled on repayment, the
migration officer and applicants sign the Terms and Conditions of Loan
form [IMM 0502] as an indication that the loan has been authorized.
- This signed form is scanned and uploaded to the associated application in the Global Case Management System (GCMS).
- The client obtains a Right of Permanent Residence Loan,
Transportation Loan, Admissibility Loan form [IMM 0500] from the
migration officer.
- The client approaches an airline that is willing to accept the
Right of Permanent Residence Loan, Transportation Loan, Admissibility
Loan form [IMM 0500] to invoice IRCC without being paid upfront.
- The client or service provider organization (SPO) completes the
top portion of the Right of Permanent Residence Loan, Transportation
Loan, Admissibility Loan form [IMM 0500] (biographic data), Section I,
and signs the appropriate box at the bottom of the form.
- The airline fills out Section II and III with the flight details
and costs, which should be in Canadian or United States (U.S.) currency.
- Once the Right of Permanent Residence Loan, Transportation Loan,
Admissibility Loan form [IMM 0500] is finalized, the airline sends the
white copy of the form and the invoice to IRCC Collections. The yellow
copy of the form is provided to the client, the pink placed in the
Canada Border Services Agency (CBSA) file, and the green given to the
SPO for reference.
- IRCC Collections processes the loan in the client’s name and releases the payment to the airline.
Redestining or relocating after arrival
In exceptional circumstances where a newcomer has been inadvertently
destined to an inappropriate destination, a transportation loan may be
used to facilitate the relocation. Such circumstances may include family
members being settled in another community or the medical needs of the
applicant.
The designated officer must communicate the facts of the case to the
Resettlement Services Unit, who reviews the circumstances that led to
the situation and provides a solution.
Ground transportation procedures for issuing a transportation loan at a Canadian port of entry (POE)
If a government-assisted refugee or joint assistance
sponsorship (JAS) client requires ground transportation to reach their
final destination city, officers are to follow the instructions below.
As this is a continuation of the travel arrangements from overseas, the
client does not have to sign the Terms and Conditions of Loan form [IMM 0502] (PDF, 1.16MB) again.
If the use of a bus company is not possible, and a taxi or other
private transportation is needed, the transportation costs for
government-assisted refugees and JAS clients are covered through the
port of entry (POE) SPO contribution agreement. Sponsoring groups are
responsible for arranging and covering these costs for ground
transportation to privately sponsored refugees’ and blended visa
office-referred refugees’ final destination.
- The client or SPO obtains a Right of Permanent Residence Loan,
Transportation Loan, Admissibility Loan form [IMM 0500] from the POE
CBSA officer.
- The client or SPO completes the top portion of the Right of
Permanent Residence Loan, Transportation Loan, Admissibility Loan form
[IMM 0500] (biographic data) as well as Section I and signs the
appropriate box at the bottom of the form.
- The client or SPO brings the Right of Permanent Residence Loan,
Transportation Loan, Admissibility Loan form [IMM 0500] to the bus
company’s counter at the airport.
- The bus company agent fills out Box 31 (other costs).
- Once the Right of Permanent Residence Loan, Transportation Loan,
Admissibility Loan form [IMM 0500] is finalized, the bus company agent
sends the white copy of the form and the invoice to IRCC Collections for
payment. The yellow copy of the form is provided to the client, the
pink placed in the CBSA file and the green given to the SPO for
reference.
- IRCC Collections processes the loan in the client’s name and releases the payment to the bus company.
Overnight accommodation procedures for issuing a transportation loan at a Canadian port of entry (POE)
For all categories of refugees, if in-transit overnight accommodation
procedures are required for onward travel the next day, hotel
arrangements may be made for the clients if not already done. As this is
a continuation of the travel arrangements from overseas, the client
does not have to sign the Terms and Conditions of Loan form [IMM 0502] (PDF, 1.16MB) again.
The hotel costs for government-assisted refugees and JAS clients are
covered through the POE airport SPO’s contribution agreement with IRCC.
The hotel cost for privately sponsored refugee and blended visa
officer-referred refugee clients may be covered using the Right of
Permanent Residence Loan, Transportation Loan, Admissibility Loan form
[IMM 0500]:
- The POE SPO obtains a Right of Permanent Residence Loan,
Transportation Loan, Admissibility Loan form [IMM 0500] from the POE
CBSA officer.
- The POE SPO makes hotel arrangements for the client.
- The client or SPO representative provides the Right of Permanent
Residence Loan, Transportation Loan, Admissibility Loan form [IMM 0500]
to the hotel front desk agent.
- The hotel agent fills out Box 31 (other costs).
- Once the Right of Permanent Residence Loan, Transportation Loan,
Admissibility Loan form [IMM 0500] is finalized, the hotel agent sends
the white copy of the form and the invoice to IRCC Collections for
payment. The yellow copy of the form is provided to the client, the pink
placed in the CBSA file and the green given to the SPO for reference.
Air transportation procedures for issuing a transportation
loan at a Canadian port of entry (POE) using Immigration Organization
for Migration (IOM) services
- The POE SPO contacts the IOM to have them purchase and arrange travel for the client.
- The IOM sends a copy of the purchased ticket or itinerary and travel cost sheet to the POE SPO to provide to the client.
- IRCC Collections processes the loan in the client’s name and releases the payment to the IOM.
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