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POF with a personal loan

Gruff

Star Member
Jun 2, 2018
138
120
Hi all,

Longtime viewer on this forum, got my ITA on the previous draw but having difficulty finding a concrete answer for proof of funds and outstanding loan.

Basically how do personal loans affect POF?

I took a personal bank loan last year to pay off my credit card debts and have been paying the doing the monthly repayment back (total outstanding is about £7000). I currently have more than the required $12475 in my bank account.

My question is when I submit my profile do I need to show funds to cover both the outstanding loan and the $12475 OR can I just show that I have the required $12475 in my bank; along with a letter of explanation to explain what the monthly loan repayments are for and that they will continue to be paid once
I’m in Canada (monthly repayments are about £200 nothing major)

I can get a gift deed from my parents to cover the cost of the loan if absolutely necessary but I’d rather keep paying it off monthly.
 

Sourav

Member
Feb 26, 2011
19
1
Hi all,

Longtime viewer on this forum, got my ITA on the previous draw but having difficulty finding a concrete answer for proof of funds and outstanding loan.

Basically how do personal loans affect POF?

I took a personal bank loan last year to pay off my credit card debts and have been paying the doing the monthly repayment back (total outstanding is about £7000). I currently have more than the required $12475 in my bank account.

My question is when I submit my profile do I need to show funds to cover both the outstanding loan and the $12475 OR can I just show that I have the required $12475 in my bank; along with a letter of explanation to explain what the monthly loan repayments are for and that they will continue to be paid once
I’m in Canada (monthly repayments are about £200 nothing major)

I can get a gift deed from my parents to cover the cost of the loan if absolutely necessary but I’d rather keep paying it off monthly.
Bro any update?
 

dauntless84

Hero Member
Sep 25, 2017
240
37
Hi all,

Longtime viewer on this forum, got my ITA on the previous draw but having difficulty finding a concrete answer for proof of funds and outstanding loan.

Basically how do personal loans affect POF?

I took a personal bank loan last year to pay off my credit card debts and have been paying the doing the monthly repayment back (total outstanding is about £7000). I currently have more than the required $12475 in my bank account.

My question is when I submit my profile do I need to show funds to cover both the outstanding loan and the $12475 OR can I just show that I have the required $12475 in my bank; along with a letter of explanation to explain what the monthly loan repayments are for and that they will continue to be paid once
I’m in Canada (monthly repayments are about £200 nothing major)

I can get a gift deed from my parents to cover the cost of the loan if absolutely necessary but I’d rather keep paying it off monthly.
Hi,

What did you do in your situation?


Dan
 

Gruff

Star Member
Jun 2, 2018
138
120
So I submitted what I had after being told that the personal loan wouldn’t be deducted. Got a letter from cic after 7 months saying I didn’t have enough money as they deduct the loan from my total funds, had to provide updated bank statements to show I had enough to meet the minimum and cover the loan.

Luckily I have enough funds and I’ve provided some updated letters.

TLDR: If you have a loan you need to show you have the funds to cover it and meet the minimum settlement funds. Confirmed by CIC procedural fairness letter.
 

dauntless84

Hero Member
Sep 25, 2017
240
37
So, in a case where if you have a loan and Savings, your Savings are more than the loan amount, IRCC will calculate to see what the difference is in order to know the funds left after the loan right?
 

Gruff

Star Member
Jun 2, 2018
138
120
So, in a case where if you have a loan and Savings, your Savings are more than the loan amount, IRCC will calculate to see what the difference is in order to know the funds left after the loan right?
If you have $15000 savings and $5000 loan IRCC will calculate that you have $10000 (so not enough to meet minimum funds)

If for example you are a single applicant with a $5000 debt you would need $17669 in your savings minimum.

$12669 minimum funds
$5000 loan
=$17669

In this example if you had less than $17669 your application would be rejected. Basically they will deduct any debts from your total funds.

Hope this helps.
 
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dauntless84

Hero Member
Sep 25, 2017
240
37
In my case,

US Dollars
Bank 1 - Savings - $20,000
Loan. - $7,000
Difference = $13,000

Bank 2 - Savings - $8,000

Therefore, both the Banks = $21,000 which is equivalent to $27,800 Canadian Dollars.

Based on IRCC, for two applicants, they need $15,530 Canadian Dollars right?, please correct me if I am wrong here, just making sure.

Am I good here?
 
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Gruff

Star Member
Jun 2, 2018
138
120
In my case,

US Dollars
Bank 1 - Savings - $20,000
Loan. - $7,000
Difference = $13,000

Bank 2 - Savings - $8,000

Therefore, both the Banks = $21,000 which is equivalent to $27,800 Canadian Dollars.

Based on IRCC, for two applicants, they need $15,530 Canadian Dollars right?, please correct me if I am wrong here, just making sure.

Am I good here?
That’s correct yes you should be all good as you have enough to cover the full loan and meet the minimum funds.
 

dauntless84

Hero Member
Sep 25, 2017
240
37
That’s correct yes you should be all good as you have enough to cover the full loan and meet the minimum funds.
Thank you my friend. Appreciate your response. Please don't mind my elaboration, I just want to make it right before hand.

Dan
 

Loydie

Full Member
Oct 12, 2018
25
1
Hi Bro, I'm in the same situation like yours.

I have a personal loan that is bigger than my POF, and I made an letter of explanation stating that I my personal loan would be paid monthly and the remaining would be paid by my end of service gratuity/payment.

However, I didn't met the eligibility due to this and I'm thinking of paying my loan in full and raise a webform for this.

I really badly need your advice with this. Shall I pay my loan in full amount or I'll just add the money in my POF?

Appreciate your response.

By the way, what's your status right now?
 

Loydie

Full Member
Oct 12, 2018
25
1
That’s correct yes you should be all good as you have enough to cover the full loan and meet the minimum funds.
Hi Bro, I'm in the same situation like yours.
I have a personal loan that is bigger than my POF, and I made an letter of explanation stating that I my personal loan would be paid monthly and the remaining would be paid by my end of service gratuity/payment.

However, I didn't met the eligibility due to this and I'm thinking of paying my loan in full and raise a webform for this.

I really badly need your advice with this. Shall I pay my loan in full amount or I'll just add the money in my POF?

Appreciate your response.

By the way, what's your status right now?
 

dauntless84

Hero Member
Sep 25, 2017
240
37
Hi Bro, I'm in the same situation like yours.
I have a personal loan that is bigger than my POF, and I made an letter of explanation stating that I my personal loan would be paid monthly and the remaining would be paid by my end of service gratuity/payment.

However, I didn't met the eligibility due to this and I'm thinking of paying my loan in full and raise a webform for this.

I really badly need your advice with this. Shall I pay my loan in full amount or I'll just add the money in my POF?

Appreciate your response.

By the way, what's your status right now?

If you add the money to the POF, I assume it would be from your family member. Can you get a Notary statement from them that you would be getting the money? The funds would show that your new amount is more than your loan I suppose. If that is the case, it can be possible to be added on POF. This is my thought.


Dan
 

Loydie

Full Member
Oct 12, 2018
25
1
If you add the money to the POF, I assume it would be from your family member. Can you get a Notary statement from them that you would be getting the money? The funds would show that your new amount is more than your loan I suppose. If that is the case, it can be possible to be added on POF. This is my thought.


Dan
Actually the money is coming from me and my wife salary. So how can I show it to them that its from my our salary?

Do you think adding it in my POF is better than paying the personal loan itself and get a clearance that the loan is paid.
 

dauntless84

Hero Member
Sep 25, 2017
240
37
Actually the money is coming from me and my wife salary. So how can I show it to them that its from my our salary?

Do you think adding it in my POF is better than paying the personal loan itself and get a clearance that the loan is paid.
If the POF shows amounts that can meet IRCC requirements after your loan is paid, you are good Loydie.

When you show POF, you can show them via Bank Statements and Tax forms that show your employment.


Dan