The transportation loan government provides for refugees coming to Canada is being criticized for the financial burden it places on already cash-strapped immigrants.

Wanda Yamamoto, president of the Canadian Council for Refugees, said transportation loans are a problem for refugees because they typically arrive with no money.

The loan is a huge debt for someone who is trying to settle in, learn the language, find a job and buy a few things, said Yamamoto, who added that missing payments on the loan prevents refugees from sponsoring family members to also come to Canada.

The loans cover the costs associated with transportation to Canada and the medical exams needed to enter the country.

The recipient is required to start paying off the loan 30 days after arrival and if the loan isn't paid back in three years interest is charged.

Dill Subedi and his family of five are refugees who have a transportation loan of $10,244 and have no way to pay. They live in a two-bedroom home in Winnipeg.

Between Nepal and Katmandhu Subedi has spent 18 years in refugee camps.

Moving to Canada had been a dream, said Subedi.

Subedi said the loan is way more then he expected and if he knew then what he knows now, he would have chosen the refugee camp over Canada.

"I would go to [any] countries which would not charge any loan, because there were seven options. Or, I would stay in the [refugee] camp itself," said Subedi.

Though he has sent out 40 resumes and has seven years experience as a school principal, Subedi still has not found work.

Subedi should be paying $270 per month towards the loan but right now can only afford to pay $138, which will extend the loan by three years with an unknown amount going to interest.

Without employment, Subedi is supporting his family through the Refugee Assistance Program, which provides his family with $1670 per month until June.

Subedi also receives federal and provincial money from the child tax benefit program.

Canada is much better for my children, said Subedia.

But Subedi spends sleepless nights worrying about how his family will make ends meet when assistance is cut off.

Canada is one of the few countries to charge refugees the cost of getting to their new home and the only country to charge interest.

Yamamoto said Canada's loan program should be discontinued.

Bringing refugees to Canada is a humanitarian gesture and part of that reaching out should include paying for people to come here, she said, adding that the Canada Council for Refugees have been lobbying to this affect for many years but have yet to receive a response from government.

A recent Winnipeg study shows 91 per cent of refugees live in poverty during their first year here. And after three years the same report revealed that 53 per cent are still living in poverty.

CBC News requested an interview from Immigration Minister Jason Kenny but he was unavailable.

Subedi said he raised the issue of transportation loans with the minister but he has not yet received a response.