IB Skill Loan
IB Skill Loan
IB Skill Loan Scheme aims to facilitate easy and affordable access to financial assistance for individuals seeking to enhance their skills through vocational training and skill development courses
| Sl no. | Particulars | Guidelines- IB Skill loan scheme | ||||||||
| 1. | Objective | IB Skill Loan Scheme aims to facilitate easy and affordable access to financial assistance for individuals seeking to enhance their skills through vocational training and skill development courses. | ||||||||
| 2. | Eligibility Criteria | |||||||||
| 2.1 | Applicant | Any individual who has secured admission / who meets the eligibility criteria with minimum qualifications to undergo skill training for the National Skill Qualification Framework (NSQF) aligned courses and/ or the Non-NSQF aligned courses by the training entities on boarded on the MSDE’s Skill India Digital Hub (SIDH) platform, is eligible for a Skilling Loan. | ||||||||
| 2.2 | Nationality | The applicant should be an Indian National | ||||||||
| 2.3 | Training Institutes | Industrial Training Institutes (ITIs), Polytechnics or school recognized by Central or State education Boards or 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) and/ or the Non-NSQF aligned courses in skill development provided by the training entities on boarded on the MSDE’s Skill India Digital Hub (SIDH) platform. | ||||||||
| 2.4 | Training Courses | Courses run by above mentioned Training Institutes (in 2.3) aligned to National Skill Qualification Framework (NSQF) and/ or the Non-NSQF aligned courses in skill development provided by the training entities on boarded on the MSDE’s Skill India Digital Hub (SIDH) platform shall be covered by the Skill Loan. There is no minimum course duration.
Reference: § www.skillindiadigital.gov.in/ § www.ncgtc.in/ |
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| 2.5 | Minimum Age | There is no specific restriction with regard to the age of the student to be eligible for skilling loan. However, if the student is a minor, while the parent executes documents for the loan, a letter of acceptance/ ratification from him/ her upon attaining majority to be obtained. | ||||||||
| 2.6 | Minimum Qualification | As required by the enrolling institutions/ organizations as per NSQF and/ or the Non-NSQF aligned courses in skill development provided by the training entities on boarded on the MSDE’s Skill India Digital Hub (SIDH) platform. | ||||||||
| 3. | Quantum of Finance | Minimum – Rs.5000/-
Maximum – Rs.750000/- |
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| 4. | Expenses Considered for Loan | Tuition/ course fee: Banks shall pay such tuition/ course fee directly to the Training Institute.
Any other reasonable expenditure found necessary for completion of the course including but not limited to assessment fee, Examination fee, Library charges, Laboratory fee, Caution deposit, Purchase of books, equipment’s and instruments, etc. may be covered. As such courses are localized boarding, lodging may not be necessary. However, wherever it has been found necessary, the same could be considered on merit. |
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| 5. | Margin | 10.00% | ||||||||
| 6. | Rate of Interest | Click Here
Note: Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students. |
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| 7. | Security | No collateral for skilling loan will be taken.
However, skill loans will be covered under Credit Guarantee Fund Scheme for Skill Development (CGFSSD) |
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| 8. | Repayment |
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Frequently Asked Questions (FAQs)
Find answers to commonly asked questions about Indian Bank Education Loans.
1. What is an Education Loan?
An Education Loan from Indian Bank helps students finance higher education in India or abroad by covering eligible academic expenses such as tuition fees, books, hostel charges, and other approved educational costs.
2. Who is eligible to apply for an Indian Bank Education Loan?
Indian citizens who have secured admission to a recognized educational institution in India or abroad and meet the bank's eligibility criteria can apply for an Education Loan.
3. What is the interest rate for an Indian Bank Education Loan?
The Education Loan interest rate depends on the Institute/College/University. Please refer to the latest interest rates published by Indian Bank.
4. What expenses are covered under an Education Loan?
An Education Loan may cover tuition fees, examination fees, hostel charges, books, equipment, laptops, travel expenses (for overseas studies), and other eligible education-related expenses as per the loan scheme, details of collateral is required if loan amount is more than 7.50 Lakh.
5. What documents are required to apply for an Education Loan?
Applicants generally need identity proof, address proof, admission letter, academic records, fee structure, income proof of the co-applicant, bank statements, and other documents required by Indian Bank.
6. Can I apply for an Education Loan to study abroad?
Yes. Indian Bank offers Education Loans for eligible higher education courses in India as well as abroad, subject to the bank's terms and eligibility criteria.
7. How can I calculate my Education Loan EMI?
You can use the Indian Bank Education Loan EMI Calculator to estimate your monthly EMI based on the loan amount, interest rate, and repayment tenure.
8. Is a co-applicant required for an Education Loan?
Yes. An eligible parent, guardian, or another acceptable co-applicant is generally required, subject to the bank's lending guidelines.
9. Can I get tax benefits on an Education Loan?
Yes. Interest paid on an Education Loan may qualify for tax benefits under the applicable provisions of the Income Tax Act, subject to prevailing tax laws.
10. Can I apply for an Indian Bank Education Loan online?
Yes. Eligible applicants can apply for an Education Loan online through the Indian Bank website or by visiting the nearest Indian Bank branch.
11. What is the repayment tenure for an Education Loan?
The repayment tenure depends on the loan scheme and the sanctioned loan amount, as per Indian Bank's prevailing guidelines.
12. How long does it take to process an Education Loan application?
The processing time depends on the completeness of the application, document verification, and fulfilment of the bank's eligibility requirements.
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