IDBI Bank Skill Loan Scheme for Technical Education

IDBI Bank Skill Loan Scheme

The IDBI Skill Loan Scheme helps students who have gained admission into technical courses offered by Industrial Training Institutes (ITIs), polytechnics, etc. to pay for their course fees. The loan amount starts from Rs. 5,000 and can go up to Rs. 1.5 lakh depending on the duration of the course.

Features of IDBI Skill Loan Scheme for Technical Courses

Why this Loan?

• This IDBI education loan is meant for you if you have gained admission into a technical course offered by a polytechnic, Industrial Training Institute (ITI), etc. in India
• The bank disburses the IDBI Bank Skill Loan Scheme as a series of payments over the required number of terms or years to pay the course fees or other approved charges

IDBI Skill Loan Scheme – Loan Amount

• The minimum loan amount starts from Rs. 5,000 and the maximum amount can go up to Rs. 1.5 lakh depending on the duration of the course
• Course Duration upto 6 Months: For these courses, the maximum loan amount available will be up to Rs. 50,000
• Courses Duration over 6 Months: For these courses, the maximum loan amount available will be up to Rs. 1.5 lakh

IDBI Skill Loan Scheme – Interest

• As of November 2020, the interest rate charged for this study loan availed for skill development courses is 9.05%
• Simple interest is charged monthly during the repayment moratorium period

IDBI Skill Loan Scheme – Moratorium

• Courses of Duration upto 1 Year: Course duration + 6 months from the completion of the course
• Courses of Duration over 1 Year: Course duration + 12 months from the completion of the course

IDBI Skill Loan Scheme – Repayment

• Loans of upto Rs. 50,000: Repayment period is up to 3 years after course completion
• Loans between Rs. 50,000 and 1 lakh: Repayment period is up to 5 years after course completion
• Loans above Rs. 1 Lakh: Repayment period is up to 7 years after course completion

Security Needed

• IDBI Bank does not ask for any security or third party guarantee. However, parents have to sign the loan documents with the student as co-borrowers

IDBI Skill Loan Scheme – Eligibility

• The borrower should be an Indian national
• In case the student is a minor, the parents will have to sign the application and do the necessary paperwork. The bank will get the student to ratify the loan through a letter of acceptance of terms and conditions once she or he reaches the age of majority

IDBI Bank Skill Loan Scheme – Eligible Courses

• Courses offered by Industrial Training Institutes (ITIs), polytechnics, schools recognised for the same by the central or state education board or college affiliated to a recognised university are eligible for the loan
• Certificate, diploma or degree course from training centres that are affiliated to professional skill augmentation bodies such as National Skill Development Corporation (NSDC), sector skill councils, state skill missions, state skill corporations and who operate under the National Skill Qualification Framework (NSQF) are eligible to apply for the loan
• The bank allows its State Level Bankers committee (SLBC) or State level Co-ordination Committee (SLCC) to add state-specific skill development courses that offer good employability opportunities for course students
• The duration of the courses can be anything from 2 months to 3 years

Borrower Contribution to Total Cost (Margin Money)

• The bank does not charge any margin money on this loan if the interest is serviced during the moratorium
• Otherwise, the bank may ask for 10% of total loan amount from the borrower

Note: Margin money refers to the amount the borrower contributes to the overall amount required.

Processing and Other Charges

• There are no processing charges for this loan

Uses of IDBI Skill Loan Scheme

• College, school and hostel fees
• Examination, library and laboratory fees
• Caution deposit, building fund or refundable deposit supported by institution bills or receipts
• Cost of books, equipment, instruments, uniforms
• Purchase of computer, if required for the course
• Travel expenses
• Insurance premium for the borrower student, if applicable
• Other expenses needed for completing the course such as study tours, project work, thesis, etc.
• Taxes and cesses, as applicable
• Any boarding or lodging expenses, if such boarding or lodging is needed, shall be considered on case-to-case basis

Other Features to Know

• Balance transfer is not allowed from other banks to IDBI Bank
• The borrower can repay the loan from any time without having to pay any prepayment charges
• The student’s progress report has to be submitted with the bank at regular intervals
• The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant(s)
• There is no minimum course duration

Documents Needed

• Application Form duly filled and signed by applicant and/or parents along with details of applicant and/or parents
• Two Passport Size Photographs of applicant(s)
• Photocopy of PAN Cards of the student or parents that need to be submitted at the time of application or during the course period
• Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
• Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
• Admission Letter, Course Details and Prospectus
• Fee Details with Demand of Fee by the Institution
• All Proofs of Past Academic Record including Mark Sheets and Certificates

Reference Facts

• IDBI Bank Website: www.idbibank.in and www.inet.idbibank.co.in (net banking)
• Headquarters: Mumbai, Maharashtra
• Call Centre Toll-Free Number: 1800 209 4324, 1800 22 1070