About Lender
Windmill Microlending offers low-interest, affordable career loans of up to $15,000 to help skilled immigrants and refugees pay for the costs related to education and training programs, credentials, licensing, and more to reach their career goals. Their Refugee Loan Program has made 800 loans, totaling more than $5.25 million in loan capital, to refugees from 53 countries, the top three being Sudan, Turkey, and Syria. These loans, along with professional development resources, aim to empower skilled newcomers by providing financial support for upskilling, accreditation, education, training, and living costs.
What sets Windmill apart is its commitment to assisting immigrants and refugees in integrating successfully into Canada's economy by leveraging their much-needed skills and experience. Through initiatives like the Windmill Mentorship Program and career coaching services, clients receive valuable insights and support to navigate the Canadian job market and pursue their professional goals.
Key Features
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Affordable Loans. Windmill offers low-interest loans tailored to the needs of skilled immigrants and refugees, providing financial support for upskilling, accreditation, education, training, and living costs.
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Professional Development Resources. In addition to financial assistance, Windmill provides access to professional development resources, including career coaching services and the Windmill Mentorship Program, to empower clients to achieve career success.
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Loan Amount. Clients can borrow up to $15,000 through Windmill's regular loan program, with specific profession-related loan programs potentially exceeding this amount.
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Fixed Low-Interest Rate. Windmill offers a fixed low interest rate for the term of the loan, starting as low as 6.7%, ensuring predictable and manageable repayment terms.
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Generous Funding. Windmill is generously funded by private donors (60%) and the Canadian Government (40%), reflecting a collective effort to support newcomers in their journey towards career success in Canada.
Pros and Cons
Pros
Cons
Reliability
Windmill Microlending has garnered recognition and praise within the charitable sector, receiving awards and accolades such as being rated as a 5-star charity and being acknowledged as one of Canada's top-performing and fastest-growing charities in 2022. Additionally, Windmill has been recognized as the best nonprofit employer for its commitment to diversity, equity, and inclusion. These accolades underscore Windmill's reliability and dedication to its mission of supporting skilled immigrants and refugees in achieving their career goals in Canada.
How to Apply for a Windmill Loan?
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Check Your Eligibility. Before applying for a Windmill loan, ensure that you meet the eligibility criteria. You must be an immigrant holding one of the eligible immigration statuses, such as Permanent Resident, Protected Person, Convention Refugee, Provincial Nominee, or Canadian Citizen. Unfortunately, international students, live-in caregivers, and refugee claimants are not eligible for Windmill loans.
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Complete the Eligibility Quiz. Take the 10-second Eligibility Quiz on Windmill's website to determine if you qualify for a loan. The quiz will assess your eligibility based on your immigration status and financial situation.
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Gather Required Documents. Once you pass the Eligibility Quiz, gather the necessary documents for your loan application. These documents may include proof of identity, immigration status, income verification, and a void cheque or Direct Deposit Form for your bank account.
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Submit Your Application. Fill out Windmill's quick and easy online application form, providing accurate information and uploading the required documents. The application process is designed to be user-friendly and accessible, ensuring a smooth experience for applicants.
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Await Loan Approval. After submitting your application, Windmill will review your information and documents to assess your eligibility for a loan. You will receive a loan approval notification within two weeks of submitting your application.
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Receive Loan Funds. Upon loan approval, the approved loan amount will be credited to your bank account within 10-15 days. Windmill strives to expedite the disbursement process to provide timely financial assistance to clients.
Conditions and Requirements
Conditions
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Loan Amount. Borrowers may receive loans of up to $15,000 through Windmill's regular loan program. Additionally, specific profession-related loan programs may offer higher loan amounts tailored to the career needs of applicants.
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Interest Rate. Windmill offers fixed low-interest rates for the entire term of the loan, starting as low as 6.7%. This fixed-rate structure provides borrowers with predictability and stability in their repayment obligations.
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Loan Processing Fees. Windmill does not charge any loan processing fees, ensuring transparency and affordability for borrowers throughout the loan application process.
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Repayment Terms. Repayment terms are flexible and tailored to the individual needs of borrowers. Payments are typically made monthly, with options for interest-only payments during certain periods, such as while completing a Career Success Plan.
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Credit Building. Windmill reports loan repayment to credit bureaus, enabling borrowers to build their credit history and enhance their financial standing in Canada. This credit reporting feature helps borrowers establish a positive credit profile, which is essential for future financial endeavors.
Requirements
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Immigration Status. Borrowers must be immigrants holding one of the eligible immigration statuses, including Permanent Resident, Protected Person, Convention Refugee, Provincial Nominee, or Canadian Citizen. Unfortunately, certain groups, such as international students, live-in caregivers, and refugee claimants, are not eligible for Windmill loans.
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Documentation. Borrowers are required to submit various documents as part of the loan application process. These documents may include proof of identity, immigration status, income verification, and banking information (e.g., void cheque or Direct Deposit Form).
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Financial History. Windmill considers applicants' financial history as part of the loan approval process. Borrowers must demonstrate responsible financial behavior and the ability to repay the loan according to the agreed-upon terms.
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Career Success Plan. Borrowers must have a clearly defined Career Success Plan that outlines their goals and how the loan funds will be used to achieve them. This plan helps ensure that the loan is utilized effectively for career advancement purposes.
Ways to Receive the Money
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Direct Deposit. The most common method for receiving loan funds is through direct deposit into the borrower's bank account. Once the loan application is approved, Windmill initiates a direct deposit transfer, crediting the approved loan amount directly into the borrower's designated bank account. This method provides a secure and efficient way for borrowers to access the funds promptly.
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Electronic Funds Transfer (EFT). Some borrowers may opt for electronic funds transfer (EFT) as an alternative to direct deposit. Similar to direct deposit, EFT involves the transfer of funds electronically from Windmill's account to the borrower's bank account. Borrowers need to provide their banking information, such as account number and transit number, to facilitate the EFT transaction.
Products
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Regular Loan Program (up to $15,000). The regular loan program provides borrowers with access to financing for various career development purposes, including upskilling, accreditation, education, training, and living costs. This program offers flexibility and support for immigrants and refugees pursuing their career goals in Canada.
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Profession-Specific Loan Programs (may exceed $15,000). Windmill Microlending also offers profession-specific loan programs designed to meet the unique needs of borrowers in certain career fields. These programs may offer higher loan amounts tailored to the specific requirements of professionals seeking licensing, retraining, or relocation assistance in their respective industries.
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Credential Recognition Loan Program (Quebec Residents). For residents of Quebec, Windmill offers a specialized loan program focused on funding credential recognition processes. This program assists borrowers in covering the costs associated with obtaining recognition for their credentials in Quebec, facilitating their integration into the provincial workforce.
Reasons for Getting Rejected for a Windmill Loan
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Insufficient Documentation. The applicant may fail to provide the necessary documentation to support their loan application. This could include proof of identity, immigration status, income verification, and other relevant documents requested by Windmill Microlending. Incomplete or inaccurate documentation can result in the rejection of the loan application.
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Lack of Career Success Plan. Applicants are required to have a clearly defined Career Success Plan outlining their goals and how the loan funds will be used to achieve them. If the applicant fails to provide a comprehensive plan or demonstrates a lack of clarity regarding their career objectives, their loan application may be rejected.
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Employment Status. Windmill considers the applicant's employment status and stability as part of the loan assessment process. If the applicant is unemployed, underemployed, or lacks a stable source of income, their ability to repay the loan may be questioned, leading to a rejection of the loan application.
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Financial History. Windmill evaluates applicants' financial history as part of the loan approval process. If the applicant has a poor credit history, outstanding debts, or a history of bankruptcy or consumer proposal, their loan application may be rejected. Windmill assesses the applicant's ability to repay the loan based on their financial background.
How to Repay a Windmill Loan?
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Loan Repayment Schedule. Upon loan approval, borrowers receive a loan repayment schedule outlining the terms and conditions of repayment. The repayment schedule specifies the repayment amounts, frequency (typically monthly), and duration of the loan.
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Automatic Payments. Windmill facilitates automatic payments for loan repayment by setting up pre-authorized debits from the borrower's bank account. This ensures that payments are made promptly and without the need for manual intervention from the borrower.
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Monthly Payments. Borrowers are required to make monthly payments according to the agreed-upon repayment schedule. Payments are typically deducted automatically from the borrower's bank account on the designated payment due date.
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Interest-Only Payments (if applicable). During certain periods, such as while completing a Career Success Plan, borrowers may be required to make interest-only payments on their loan. This option provides flexibility and reduces the financial burden on borrowers during transitional periods.
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Principal and Interest Payments. Once the interest-only period ends or the borrower achieves certain milestones, such as securing employment in their field or completing their Career Success Plan, they transition to making principal and interest payments on the loan amount.
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Payment Adjustment. Windmill adjusts loan payments based on changes in the borrower's circumstances, such as changes in income or employment status. Borrowers can contact Windmill to discuss payment adjustments or explore options for temporary payment deferral in case of financial hardship.
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Loan Repayment Duration. The duration of loan repayment varies depending on the terms of the loan agreement and the borrower's circumstances. Windmill aims to provide borrowers with manageable repayment terms tailored to their financial capacity.
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Penalty-free Early Repayment. Borrowers have the option to repay their Windmill loan in full at any time without incurring penalties. Early repayment allows borrowers to save on interest costs and complete their loan obligations ahead of schedule if they have the means to do so.
Alternatives
Alpine Credits
Alpine Credits specializes in providing loans tailored to newcomers to Canada, offering easy access to cash without requiring a Canadian credit history. Regardless of your credit background, Alpine Credits aims to streamline the loan approval process, ensuring fast access to funds. With a commitment to efficiency, they strive to transfer approved funds to your account within a week of application approval, providing timely financial assistance to support your transition to life in Canada.
Cashco Financial
Cashco Financial understands the challenges faced by new immigrants moving to Canada and offers flexible installment loans designed to help them build credit and realize their Canadian dreams. With Cashco's Flex Loans, new immigrants can borrow between $500 and $7,000, with repayment terms of up to 60 months. These loans not only assist in purchasing essentials for starting anew but also contribute to rebuilding credit, as each repayment is reported to the Canadian Credit Bureau. Cashco Financial prioritizes accessibility and empowerment, enabling new immigrants to navigate their financial journey in Canada with confidence.
QuadFi
QuadFi caters to the needs of new Canadians by providing affordable loans that assist in building a credit history in their new home country. With competitive rates starting as low as 5.99%, QuadFi's loans offer flexibility with no associated fees and repayment terms of 36 or 60 months. Borrowers can access loan amounts ranging from $5,000 to $50,000, empowering them to manage their financial needs effectively while establishing a solid credit foundation in Canada. QuadFi prioritizes simplicity and transparency, ensuring that borrowers can navigate loan terms with ease as they settle into their new lives in Canada.
Achēv
Achēv's Accelerating Career Advancement program, funded by the Government of Canada, offers financial loans and career counseling to internationally trained individuals seeking to re-enter their chosen profession. Available in Ontario, the program provides educational loans of up to $30,000 with competitive fixed interest rates and repayment terms of up to 5 years. In addition to financial support, participants receive free ongoing one-on-one financial counseling and job search assistance, empowering them to achieve their career goals and integrate successfully into the Canadian workforce. Achēv prioritizes professional development and career advancement, offering comprehensive support to internationally trained individuals as they navigate their career paths in Canada.
Editorial Opinion
Important
How to Choose a Lender
- Verify that the lender is registered with the appropriate regulatory authorities in Canada, such as the Financial Consumer Agency of Canada (FCAC), or is licensed to operate in your province.
- Check if the lender is a member of reputable industry associations in Canada, such as the Canadian Bankers Association (CBA) or the Canadian Lenders Association (CLA).
- Thoroughly review all terms and conditions outlined in your loan agreement. Understand the repayment schedule, interest rates, fees, and any penalties for late payments or defaults.
- Ensure that the contract clearly states the annual percentage rate (APR) and the total cost of borrowing, including any administrative fees or additional charges.
- Familiarize yourself with your rights regarding loan cancellation or early repayment. Canadian consumers have the right to cancel a loan within two business days after signing the agreement, without penalty.
- Research the lender's reputation by checking customer reviews, complaints, and feedback on reputable online platforms, as well as through resources provided by organizations like the Better Business Bureau (BBB).
Methodology
At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.
In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.
At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.
Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.
