What is the Canada Apprentice Loan?

The Canada Apprentice Loan (CAL) is an initiative of the Government of Canada to help you complete your apprenticeship in a designated Red Seal trade offered by FTI Ontario.

You can receive up to $4,000 in interest-free loans per period of technical training and use the funds towards tuition, tools, equipment and living expenses, as well as to cover forgone wages or to help support your family.

Who Is Eligible for the Canada Apprentice Loan?

The Canada Apprentice Loan is available in all provinces and territories except Quebec. To be eligible for trade loans you must meet all the following criteria:

  • Be a Canadian citizen, permanent resident, or protected person (designated by the Immigration and Refugee Board and Citizenship and Immigration Canada).
  • Be registered in a designated Red Seal trade.
  • Be enrolled in block release technical training or the equivalent full‑time technical training with an approved technical training provider.
  • Meet program limits: not exceed five periods of training funding or six years of interest‑free status
  • Pass a credit check (required if you are applying for the first time).

You cannot apply for the Canadian Apprentice Loan if you:

  • are a high school student
  • are an apprentice registered in the province of Quebec
  • are receiving a Canada Student Loan for the same technical training
  • have been told that you are restricted from receiving a Canada Apprentice Loan or a Canada Student Loan
  • have already received funding for 5 periods of technical training
  • have already received six years of interest-free status.

How Do You Apply for the Canada Apprentice Loan?

You can apply via the Canada Apprentice Loan Online Service, now part of My Service Canada Account (MSCA). Register or sign in, then:

  • Complete the application
  • Enroll in direct deposit
  • Track your loan status
  • View your balance
  • Update contact info.

How to Repay the Canada Apprentice Loan?

No payments or interest on your Canada Apprentice Loan are required while you’re in training.

Payments begin six months after completing or leaving your apprenticeship training program.

Keep your registration active, as if you’re no longer confirmed as an apprentice, interest can start accruing up to 12 months later.

Canada Apprentice Loan vs. Other Trade Loans

Feature Canada Apprentice Loan Other Trade Loans / Grants
Max fund per training period $4,000 interest‑free Varies (grants are usually non‑repayable)
Interest/in-training deferral Yes, no interest until after training Often charged interest or require immediate repayment
Supported uses Tuition, tools, living expenses, forgone wages Tuition only
Availability All provinces/territories except Quebec Varies by province and program
Repayment starts 6 months after finishing training Often upon disbursement or within months

Why Should You Consider the Canada Apprentice Loan?

Financial support can make a big difference during apprenticeship training.

  • No upfront cost: interest and repayment are deferred until after training ends.
  • Mitigate repayment: some apprentices borrow the full amount and invest in low‑risk savings (like GICs) tax‑efficiently (ie. TFSA), earning modest returns that may even cover the repayment amount.
  • No credit score harm: only a minimal credit check is required, and interest‑free status preserves capacity to borrow elsewhere if needed.

Frequently Asked Questions About the Canada Apprentice Loan

Can I use the Canada Apprentice Loan for tools and equipment?

Yes, the money is flexible. It’s allowed for tools, training materials, living costs, and forgone wages.

You’ll remain interest‑free for up to 12 months, but then interest begins accruing. Repayments start six months after leaving the program.

No, other grants which were time limited, like the Apprenticeship Incentive Grant (AIG) or Completion Grant (ACG) are cash you don’t repay. The Canada Apprentice Loan must be repaid eventually.

Yes, up to five periods of technical training can be financed, with you receiving up to $4,000 each time.

Your first time applying requires a credit check, but overall credit requirements are minimal, and loans are interest‑free until repayment begins.

Build Your Career with Confidence and the Right Support

If you’re enrolled in technical training for a Red Seal trade, the Canada Apprentice Loan makes perfect sense. It is an interest‑free, repayable option to ease the costs of tuition, tools, or living expenses. Whether you’re exploring trade loans or thinking about how to repay the Canada Apprentice Loan, this federal support program offers valuable financial support as you build a career in the skilled trades.

For any additional questions and information about the Canada Apprenticeship Loan, click here.

FTI Ontario offers several designated Red Seal Trades covered by the Canada Apprentice Loan that will help kick off your new journey as an apprentice. Click here to learn more and book your training today.