IDBI Skill Loan Scheme

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IDBI Skill Loan Scheme are granted to Indian students who Have secured admission in a course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by Central or State Education Boards or in a college affiliated to recognized university, training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a certificate / diploma/degree issued by such organization as per National Skill Qualification Framework (NSQF).The Government of India / State Governments may, from time to time , notify institutes/organizations for the purpose.

Courses Eligible

Courses run by above mentioned Training Institutes aligned to National Skill Qualification Framework (NSQF) shall be covered by the Skill Loan.

There is no minimum course duration.

State Level Banker’s Committee/State Level Coordination Committee may add other skill development courses/programs having good employability.

Loan Details

Coverage of expenses

Tuition /course fees
Examination / Library / Laboratory fee.
Caution Deposit
Purchase of books, equipment and instruments
Any other reasonable expenditure found necessary for completion of course to be considered on merit.
Insurance premium for student borrower, if insurance cover sought

As such courses are localized, boarding/lodging may not be necessary based on the cost of living in the particular area. However, wherever it is found necessary, the same could be considered on merit

Quantum

Minimum Loan Amount: Rs. 5,000/-
Maximum Loan Amount: Rs. 150,000/-

The estimated per month fees, based on sector & NSQF level, will be available with the NSDC. Skill loan could be availed by beneficiaries of other grant/reward based Government schemes for skill training to cover the cost of such skill training not covered under such grant/reward.

- For courses of duration up to 6 months : Up to Rs. 50,000/-
- For courses of duration above 6 months : Up to Rs. 1,50,000/-

Margin :

Nil, if Interest is serviced during the moratorium period.

10 % of total cost of course in other cases. Margin may be brought in on pro rata basis if disbursement is made in stages.

Security :

No collateral or third party guarantee will be taken. However the parent to execute the loan documents along with the student borrower as joint borrower.

Rate of Interest

For interest rate check out this link, IDBI Bank Interest Rate

Repayment

Moratorium period: In order to instill repayment behavior and get some commitments from the students, it is advisable to start repayment during the course period itself. However, Moratorium may be considered for specific courses or certain sections of the students by sanctioning authority.

Upon completion of the course, repayment will start after a moratorium period as indicated below:

For courses of duration up to 1 year: 6 months from the completion of the course
For courses of duration above 1 year: 12 months from the completion of the course

Repayment tenor: The repayment tenor after completion of the moratorium period would be as under

Loans up to Rs. 50,000 : Up to 3 years
Loans between Rs. 50,000 to Rs. 1 Lakh : Up to 5 years
Loans above Rs. 1 Lakh : Up to 7 years

Contact Details

Industrial Development Bank of India Ltd (IDBI),
IDBI Tower, WTC Complex, Cuffe Parade,
Colaba, Mumbai - 400005
Telephone No. : 91-22-22189111/ 66553355
Fax No. : 91-22-22181294 /5179/8137
Website : visit

Click here for the nearest bank branches

Note : Since the rules, regulations, eligibility conditions, repayments and interests rates etc. are revised by the banks from time to time in keeping pace with the changing capital market conditions, students and parents are advised to thoroughly check the terms and conditions of educational loan scheme on offer at the time of application.

Tags

Skill Loan , ITI Education Loan , Polytechnic Education Loan , IDBI Education Loans

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