Multi Facet Loans From Canada

To apply successfully for a loan, try to imagine yourself in the position of the lender and see if you have the answers to why exactly you need the money, what your assets are, and how you plan to repay the loan. Get your business plan in place so that you are able to convince the lender why you want the loan and how you plan to spend the money. It is best that you mention a concrete financial data complete with how you would repay the loan. If you have an established business and are looking for further expansion, you will also need to submit your past tax returns. Your credit card ratings will also affect your chances of getting a loan.

Canada Loans for Small Business

If you are planning to set up a small business, and you need to purchase or improve your real property and immovables, improve lease property or purchase new or used equipment, you need to be aware of the Canada Small Business Financing Program that aims at encouraging financial institutions and leasing companies including banks, credit union or caisse populaire to make their financing services available to entrepreneurs wishing to set up small scale businesses. Under this program, if the loan or lease is granted by the financial institution or the leasing company, the federal government will reimburse 85 percent of the lender's or lessor's losses in the event of default.

As a borrower, you can avail of up to 90% of finance to cover the cost of asset acquisition or asset improvement. The maximum loan that you can avail of is $250,000. Again, if a particular financial institution does not grant you the loan, you can forward your application to another financial institution that is part of this program. The maximum interest rate that a lender or a financial company may charge on a commercial loan is prime plus 3% on floating rate, or the lender's residential mortgage rate plus 3% on fixed rate.

The Canada Small Business Financing Program also offers special benefits for women. As a Canadian woman, if you are interested in setting up your business, you can avail of a loan easily under this program. The pre-condition is that the business should be completely or at least 50% owned by a woman or women. Again, where you live will also make a difference for the program extends loans to only particular areas in Canada.

Canada Loans for Women

Canada loans for women include the Women Entrepreneur's Fund. Under this scheme, The Business Development Bank of Canada (BDC) has earmarked a $25 million fund to enable women entrepreneurs to seek new opportunities, or expand the existing ones in business areas such as food, health, software and manufacturing.

Then again, there is the AFER Program for Women in Rural Communities - Reseau des SADC du Quebec. As the name itself suggests, the program caters to the women who reside in the rural communities. For this, they can avail a business loan of $25,000 to cover start-up costs.

Canada Loans for Students

As a student, if you wish to attend a post-secondary education institution, you can raise the required funds under the Canada Students Loan Program, which is a special program designed to take of the demonstrated financial needs of the students. Before deciding on a loan, you need an estimate of the cost of your post-secondary education. The counselors in the colleges or university that you have in mind will be able to guide you regarding your loan requirements, and on issues such as saving, planning and paying your loan.