Terms and Conditions

“Prime Rate” means the variable reference rate of interest as calculated by Canada, based on the average of the middle three of the largest five Canadian financial institutions’ prime rate.

To ensure that banks don't go bust, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled. To see your saved stories, click on link hightlighted in bold.


A trigger rate is the rate, that if surpassed, requires a variable-rate borrower to increase her payment. Trigger rates are linked to prime rate. They ensure that variable-rate borrowers with fixed payments always cover at least the interest due to a lender is fast rising rate environments.

You confirm that, to the best of your knowledge, all information that you have disclosed relating to any previous Canada Apprentice Loan s is accurate and complete. You acknowledge that Canada, and any of its contractors or agents, may collect, use, and retain your personal information directly from you, or indirectly from a third party. Where your consent is required by law to permit the direct or indirect collection, retention, use or disclosure of personal information, by your acceptance of the Terms and Conditions of this CAL Agreement, you provide your consent.

You authorize any of your current, past or future employers to release to Canada or its contractors or agents, information to locate you including your name, Social Insurance Number, date of birth, apprenticeship registration number, banking information, permanent and mailing address, telephone numbers, employer, and Technical Training Provider s address es for the purpose of enforcing your obligations pursuant to this CAL Agreement.

You agree that the following events may result in you being denied further Financial Assistance or you being required to immediately pay all or part of your Outstanding Loan Balance:. You agree that all amounts you owe on previous Canada Apprentice Loans will be administered and paid under the Terms and Conditions of this CAL Agreement, and that all such amounts are consolidated into and form part of your Outstanding Loan Balance.

You acknowledge that the period for the limitation of actions will be six years. This CAL Agreement will remain in force notwithstanding your entry into or fulfillment of an agreement with Canada to alter payment terms.

Any provision that becomes void or unenforceable will be severed from this CAL Agreement, and the validity and enforceability of all other provisions will not be affected. You agree to pay all legal fees and disbursements incurred by Canada to collect any amount of your Outstanding Loan Balance owing under this CAL Agreement, and you agree to pay interest, as per section 6 c ii , before and after default and delinquency.

You agree to pay interest before and after judgment. Administration and enforcement of Canada Apprentice Loans means development and operation of Canada Apprentice Loans, including investigations into allegations of wrongdoing, audits, and policy analysis, research and evaluation. You must provide your SIN and the other personal information requested on this form to be considered for Canada Apprentice Loans.

You have the right to the protection of and access to your personal information. Instructions for obtaining this information are outlined in the government publication entitled Info Source, which is available at the following website address: Info Source may also be accessed on-line at any Service Canada Centre.

Electronic Funds Transfer The approved amount of any Canada Apprentice Loan funding disbursed under the CAL Agreement will be electronically deposited into your bank account as entered under Banking Information, which must be a Canadian bank account held in your name, solely or jointly. Unless you enter into an agreement to alter payment terms, you agree to pay your Outstanding Loan Balance according to the standard payment terms, which are as follows: Unless you otherwise agree in writing, upon the Payment Trigger Date, you authorize Canada to debit your bank account identified under the Banking Information part of this CAL Agreement or such other bank account as advised in writing in order to collect your Outstanding Loan Balance as follows: You grant your revocable authority and direction to Canada, and any financial institution which holds such a bank account, to: What is Prompt Corrective Action?

To ensure that banks don't go bust, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled. Why the need for PCA The s and early s were a period of great stress and turmoil for banks and financial in stitutions all over the globe.

These events led to the search for appropriate supervi sory strategies to avoid bank failures as they can have a destabilising effect on the economy. Too big to fail? Due to the adverse impact on the economy , medium sized or large banks are rarely closed and the governments try to keep them afloat.

Bank rescues and mergers are far more common than outright closures. If banks are not to be allowed to fail, it is essential that corrective action is taken well in time when the bank still has adequate cushion of capital to minimise the losses. What does the RBI stipulate? Based on each trigger point, the banks have to follow a mandatory action plan. Apart from this, the RBI has discretionary action plans too. What will a bank do if PCA is triggered? Banks are not allowed to re new or access costly deposits or take steps to increase their fee-based income.

They will also not be allowed to enter into new lines of business. RBI will also impose restrictions on the bank on borrowings from interbank market. Read more on PCA. Federal Deposit Insurance Corporation.