Loans for Tools Program

Something new for first-year apprentices

The Loans for Tools program offers new apprentices a loan to help them buy the tools and equipment they need to perform the trade in which they are registered. The loan, which is interest-free for the duration of an apprentice’s training, allows participants to invest in their own skills training – giving them a stake in making it work.

How does the program work?

• The loan offers new apprentices an opportunity to access funds that will help them offset the initial cost of the tools and equipment they need during the early years of their training.
• The program recognizes that the cost of tools and equipment varies with the trade sector in which an apprentice is registered. The following maximum loans are available in each sector:

Sector	Loan amount
Service sector (includes jobs such as arborist, cook, hairstylist, horticulturist)	$300
Construction sector (includes jobs such as brick and stone mason, electrician, carpenter, hoisting engineer, ironworker, lather, plumber, refrigeration and air-conditioning mechanic, sheet metal worker)	$400
Manufacturing sector (includes jobs such as pattern maker, fitter, industrial electrician, general machinist)	$400
Automotive service sector (includes jobs such as air-cooled and marine mechanic, automotive service technician, farm equipment mechanic, fuel and electrical systems technician, truck and coach technician)	$800

• The loan is interest-free during the term of an apprentice’s program and for up to one year following completion of training.
• After the one-year period, interest is charged at the rate of prime plus 1.5 per cent.
• If an apprentice quits the program or if an apprentice’s registration is cancelled, the loan is repayable to the Ontario government within 60 days of the date of cancellation. After 60 days, interest is charged at the rate of prime plus 1.5 per cent.

What tools and equipment are eligible?

Tools and equipment that an apprentice buys to use throughout his or her apprenticeship and as a skilled worker are eligible. Manuals or code books that will remain the property of the apprentice are also eligible.

Materials (such as wood, metal, nuts, bolts, wiring, etc.) are not eligible.

How can a new apprentice apply for the Loans for Tools program?

It’s easy to apply. The Ministry of Training, Colleges and Universities will automatically send a Loans for Tools information package to each new apprentice who becomes registered with the ministry.

To apply for a loan, apprentices should complete the loans agreement in the package fully and accurately, then send it back to the ministry in the return envelope provided.

The ministry will respond within 60 days of receiving the signed loans agreement.

For more information, please call toll-free: 1-800-313-1746.