Applicability Of The Scheme
This scheme is applicable at all our Branches across the country.
Eligibility Criteria
Training Institutes
Any individual who has 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) is eligible for a Skilling Loan.
Training Courses
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. Vocational /Skill development courses of duration from 2 months to 3years run or supported by a Ministry /Dept/Organization of the Govt. or a company /society/ organization supported by National Skill Development Corporation or State Skill Missions /State Skill Corporations, preferably leading to a certificate /diploma /degree etc. issued by a Government Organization or an organization recognized /authorized by the Govt. to do so. State Level Bankers committee (SLBC) / State level Co-ordination Committee (SLCC) may add other skill development courses /programmes, having good employability. Approved courses/training programs as per The National Skill Certification and Monetary Reward Scheme
Nationality
The applicant should be an Indian National
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 then the parent has to execute documents for the loan, the bank will obtain a letter of acceptance/ratification from him / her upon attaining majority.
Minimum Qualification
As required by the enrolling institutions/organizations as per NSQF.
Know your customer (KYC) norms
Aadhar number will also be considered as a valid proof for KYC norms in addition to other identity and address proof as determined by respective banks/ lending institutes
Processing Charge/documentation Charges : NIL
MCLR + 1.50%
- Servicing of interest during Study Period and Moratorium Period shall be at the option of the borrower.
- In case, interest is serviced during the study period and Moratorium period, concession of 1% in interest rate for entire tenure of loan shall be provided.
- For girl students, an incentive in the form of 0.50% Interest Concession shall be provided as being provided under our Education Loan Product.
- The effective rate of interest should not go below the Base Rate at any instance (with or with out concessions if any).
Quantum of Finance
Loans will be in the range of Rs. 5,000/- to Rs. 1,50,000/-
| For courses of duration upto 3 Months |
Rs.50,000/ |
| For courses of duration >3 months and upto 6 months |
Rs.75,000/ |
| For Courses of duration >6 months to 1 year |
Rs.1,00,000/ |
| For courses of duration above 1 year |
Rs.1,500,00/ |
Expenses Considered for Loan
- Tuition fee/Course fee
- Examination /Library/Laboratory fee
- Caution Deposit
- Cost of Books/Equipments and Instruments
- Any other reasonable expenditure found necessary for completion of the course.
Margin
There will not be stipulation of any margin under the product i.e. Margin will be Nil
Security
No Collateral or third party guarantee will be obtained, however, the parent will execute loan document along with the student borrower as joint borrower.
Moratorium Period
Upon completion of the course, repayment will start after a moratorium period as indicated below
| Courses of duration upto 1 year |
Upto 6 months from the completion of the course |
| Courses of duration above 1 year |
12 months from the completion of the course |
Repayment
The loan will have tenure as follows
- Loans upto Rs. 50,000 : Upto 3 years
- Loans between Rs. 50,000 to Rs. 1 lakh : Upto 5 years
- Loans above Rs 1 lac : upto 7 Years
Insurance
Insurance : Group credit Life Insurance Cover will be available at the option and cost of the borrower. Cost of Insurance Premium may be financed by Bank by adding the same in the project cost and shall be recovered along with EMIs of the loan.
The Borrower can repay the loan any time after commencement of repayment WITHOUT having to pay any prepayment charges.