Canada welcomes hundreds of thousands of newcomers each year, and many need travel financing—to relocate, reunite with family, or handle emergencies. In 2025, you have two main paths: the Immigration Loans Program (ILP) for eligible refugees (interest-free, up to $15,000), and private personal loans from banks and licensed lenders (typically $100–$50,000, sometimes up to $75,000). This transactional guide shows exactly how to qualify, what to prepare, typical rates, timelines, and how to maximize your approval odds and minimize total cost.
Why Choose Travel Loans for Immigrants in Canada (2025)
-
Cover unavoidable costs: Airfare, IOM coordination fees, in-transit lodging, or last-minute family travel.
-
Bridge timing gaps: Pay for travel before your first Canadian paycheque or student disbursement arrives.
-
Build credit history: Responsible repayment on a small loan can help establish a Canadian score for future needs.
-
Pair with immigration status: ILP supports refugee travel; private loans help permanent residents, work-permit holders, and citizens.
Types of Travel Loans Available
Immigration Loans Program (ILP): Transportation Loan
Purpose: Airfare and related transportation to Canada (often via IOM).
Amount: Up to $15,000 per family (case-by-case).
Rate & Terms: Interest-free; repayment typically starts 12 months after arrival, with up to 8 years to repay.
Best For: Refugees and protected persons who lack funds and credit history.
Notes: Not designed for baggage, pet transport, or medical exams. Funds are usually coordinated directly for travel, not paid to you.
Immigration Loans Program (ILP): Assistance Loan
Purpose: Initial resettlement needs (e.g., short-term housing, utilities, local travel tied to settlement).
Amount: Can combine with the transportation loan, up to $15,000 total.
Rate & Terms: Interest-free, similar repayment window.
Best For: Newly arriving refugees who need immediate setup support.
Private Personal Loans (Banks & Licensed Lenders)
Purpose: Flexible—family visits, emergency trips, intra-Canada relocations.
Amount: Typically $100–$50,000; up to $75,000 for strong profiles (e.g., investor-class PRs).
Rate & Terms: About 7.99%–35% APR, 6–84 months; lower rates require higher credit scores/income stability.
Best For: Permanent residents, citizens, and work-permit holders with income.
Notes: Some alternative lenders consider thin/no credit profiles—at higher APRs.
Eligibility Requirements (At a Glance)
ILP (Transportation & Assistance)
-
Who qualifies: Convention refugees, protected persons, and certain humanitarian cases.
-
Age: Typically 19+ (age of majority differs by province).
-
Capacity to repay: IRCC assesses your ability to work and repay within the term.
-
Documents: Passport/ID, IRCC decision/approval, family composition, arrival itinerary (IOM), settlement plan.
Private Personal Loans
-
Status: PR, citizen, or valid work/study permit (usually 6+ months remaining).
-
Income: Stable employment or provable income (e.g., $30,000+/year improves terms).
-
Credit: 600+ recommended for prime rates; lower scores possible with higher APR or a co-signer.
-
Documents: Government ID, proof of status, 3–6 months payslips, bank statements, proof of address, Canadian bank account.
Documents Checklist (Print-Friendly)
-
Government ID and passport
-
Immigration status document (PR card, work/study permit, IRCC letter; or refugee documentation for ILP)
-
Proof of income (payslips, job offer, tax returns if available)
-
Bank statements (3–6 months) and Canadian bank account details
-
Current address proof (lease, utility, bank letter)
-
Travel itinerary/estimate (airfare quotes, IOM coordination if ILP)
-
Optional: Co-signer info (if applicable), employment letter, and any insurance details
Step-by-Step: How to Secure a Travel Loan in 2025
Step 1: Define Your Need & Budget
-
Estimate total travel cost: airfare, transit lodging, insurance, baggage, contingencies.
-
Decide how much to finance vs. pay from savings. Aim for a monthly payment ≤ 10–15% of net income.
Step 2: Pick the Right Path
-
Refugees/Protected Persons: Contact IOM/IRCC early to assess ILP eligibility for transportation and assistance loans.
-
PR/Workers/Students: Compare bank vs. alternative lender personal loans. Pre-qualify (soft check) where possible.
Step 3: Gather Your Documents
Assemble the checklist above into a single PDF. This speeds underwriting and reduces back-and-forth.
Step 4: Apply
-
ILP: Coordinate with case officer/IOM pre-arrival where possible; post-arrival, ask IRCC about assistance loans.
-
Private: Apply to 1–3 lenders (avoid shotgun applications). Use marketplaces to pre-screen, then apply directly to the best match.
Step 5: Review Offer Terms
Confirm APR, loan amount, fees, amortization length, payment date, prepayment rules, and any insurance add-ons. Decline unnecessary add-ons.
Step 6: Funding & Ticketing
-
ILP: Travel is booked/paid through IOM/IRCC processes.
-
Private: Funds typically e-deposit to your Canadian account within 1–7 days (same-day in some cases).
Step 7: Repayment Plan
-
ILP: Begins 12 months after arrival, interest-free; request deferrals or longer terms if hardship occurs.
-
Private: Set autopay, keep utilization low, and consider early principal payments if no penalty.
Costs, Rates, and Processing Times (Typical)
-
ILP Amount: Up to $15,000 (combined).
-
ILP Interest: 0%; 1–8 years to repay; 12-month grace post-arrival.
-
ILP Timing: About 1–4 weeks including interviews/logistics coordination.
-
Private Loan Amount: $100–$50,000 (to $75,000 for strong profiles).
-
Private APR: ~7.99%–35%.
-
Private Timing: 1–7 days (instant decisions available with some lenders).
-
Fees: Origination $0–$150, late fees $25–$50 (varies).
Example Repayment Scenarios
-
ILP $10,000 over 8 years, 0%: about $104/month after a 12-month grace period.
-
Private $5,000 at 19.99% APR over 36 months: about $201/month; total repayment ≈ $7,239.
-
Private $2,000 at 19.99% APR over 36 months: about $80/month; total repayment ≈ $2,894.
(Exact figures vary by lender and province. Always read the credit agreement.)
Best Places to Apply (2025)
Government / Settlement
-
IRCC / IOM: For ILP transportation and assistance loans supporting refugee travel and initial settlement.
Banks & Credit Unions (Prime Profiles)
-
Major banks (e.g., RBC, and other Big-5 banks) for lower APRs if you have income, status, and 600+ credit.
-
Credit unions may provide newcomer bundles and flexible underwriting.
Licensed Alternative Lenders (Thin Credit)
-
Newcomer-friendly lenders that accept limited credit history at higher APRs; useful for urgent needs.
-
Use reputable loan marketplaces to compare offers in one place.
How to Improve Approval Odds & Lower APR
-
Show stable income: Upload a current employment letter and recent payslips (3–6 months).
-
Build credit fast: Open a secured credit card, keep utilization <30%, pay on time for 3–6 months.
-
Add a co-signer: A PR/citizen co-signer with good credit can cut APR dramatically.
-
Borrow only what you need: Lower principal = easier approval and less total interest.
-
Choose longer terms cautiously: Lowers monthly payment but increases total cost—plan prepayments if no penalty.
-
Avoid multiple hard pulls: Pre-qualify (soft checks) first; then apply to 1–3 top choices.
Common Challenges & Practical Solutions
-
Not ILP-eligible: You’re not a refugee/protected person → use bank/alt lenders; consider a smaller amount plus a co-signer.
-
No Canadian credit: Start with secured credit and newcomer banking packages; consider a small loan to establish history.
-
High APR offers (29–35%): Reduce amount, add a co-signer, or wait 60–90 days after building credit to reapply.
-
Permit expiry soon: Lenders want work/study permits to outlast the loan; shorten term or wait until renewal is issued.
-
Cash-flow strain: Ask ILP for deferral/extension; for private loans, request hardship plans or refinance when credit improves.
Frequently Asked Questions
Can non-refugee immigrants use the ILP?
Generally, no—ILP primarily supports refugees/protected persons. Other immigrants should consider private loans or settlement grants/benefits available in their province.
Do I need a Canadian credit score?
For private loans, a 600+ score helps. Some lenders accept thin/no credit at higher APRs or with a co-signer.
When do ILP repayments start?
Usually 12 months after arrival, with 0% interest and up to 8 years to repay. You may request flexibility if facing hardship.
Can I use private loans for any travel?
Yes—subject to lender rules. Keep documentation (itinerary, quotes) for smoother underwriting.
Does health insurance matter?
Yes. Some newcomers must maintain provincial or private health insurance; factor $50–$150/month into your budget when deciding loan size.
Clear Next Steps
-
Decide your path: ILP (refugee/protected) or private personal loan (PR/worker/student).
-
Calculate your budget: Target a monthly payment ≤ 10–15% of net income.
-
Assemble documents: ID/status, payslips, bank statements, address, itinerary/quotes.
-
Pre-qualify with 1–2 banks and 1 reputable marketplace (soft checks).
-
Apply to 1–3 top choices, compare APR, term, fees, and prepayment rules.
-
Accept the best offer, set autopay, and plan optional early principal payments.
-
If ILP-eligible: Contact IOM/IRCC promptly for transportation/assistance loans and confirm your repayment start date and term.