Understanding the financial requirements for your journey is essential for a smooth transition to studying abroad. At Passage, we simplify this process by offering flexible loans without the need for co-signers, guarantors, or physical collateral. Instead, we require a cash collateral contribution, which ensures transparency and trust.
What is Cash Collateral, and When Should I Pay It?
Cash collateral is the money you send to Passage upfront as your contribution towards funding your journey.
For example, let's say for a program, the total costs are C$38,770. You will need to demonstrate that you have this amount when applying for your study permit (visa). With Passage, if you provide C$9,600 as collateral, we will lend you the full C$38,770. In addition, we will issue a Proof of Financial Support letter showing the C$38,770 to support your visa application.
If you do not get a visa, the cash collateral will be returned to you within a week. Please refer to the Passage Withdrawal Policy for additional details.
Once you successfully start your studies in Canada, a part of your cash collateral (C$9,600 / 60 months = C$160) will be used each month to cover a portion of your monthly loan payment. This means you will need to pay less from your funds each month.
When to Pay: Once your loan request is approved, you have a maximum of 2 weeks to pay the collateral amount.
Refund: If your visa application is unsuccessful, refunds are processed within 2 to 3 weeks as per Passage’s Withdrawal Policy.
Tip: Use the Passage Loan Estimator to:
Get an estimate of your required cash collateral.
Understand your repayment schedule and total costs.
Frequently Asked Questions (FAQ) about Loans and Payments
This FAQ section provides clear answers to common queries about loan repayment, interest rates, cash collateral, tuition payments, and cost of living disbursements. Designed to help applicants navigate the loan process with confidence, it covers everything you need to know about managing your loan at Passage.