Bank of India’s Pradhan Mantri Kaushal Rin Yojana (Bank of India Skill Loan Scheme)
This loan helps students who have gained admission into technical courses offered by government-recognised training institutes, schools, colleges and polytechnics pay for their course fees. The loan amount starts from Rs. 5,000 and can go up to Rs. 1.5 lakh.
Important! A reality check
While there is nothing wrong with a technical course, the jobs that become available after such courses (electrician, plumber, fitter, etc.) do not pay well – even in senior roles.
Alternatively, a career in computers and IT pays much better, with senior roles earning upwards of ₹25 lakh at the very least.
All you need to start learning is a laptop – even a second-hand one that costs less than ₹10k will do.
We have curated a list of low-cost courses that can be finished in 4-7 months and lead to rewarding careers.
You can see four courses to your right (below on mobile), and view more such fast and economical courses – some with job guarantees – by clicking the ‘More Courses’ link below.
IBM Full Stack Software Developer Certificate
Time: 4 months
Cost: Approx. ₹18k
Starting Sal: ₹4-8L
Features of Bank of India Skill Loan Scheme for Technical Courses
Why this Loan?
- The loan is meant for you if you have gained admission into a technical course offered by a polytechnic, Industrial Training Institute (ITI), school, college or training institute recognised by the state or central government of India and eligible to offer the Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
- The bank disburses the Bank of India Skill Loan Scheme as a series of payments over the required number of terms or years to pay the course fees or other approved expenses
Loan Amount
- The minimum loan amount starts from Rs. 5,000 and the maximum amount can go up to Rs. 1.5 lakh
Interest
- The interest rate charged will be the sum of Repo Based Lending Rate (RBLR) and strategic premium of 1.50%. As of October 2020, the RBLR of Bank of India is which is currently 6.85% which makes the effective interest rate for this loan scheme to be 8.35%
- Interest is charged monthly during the repayment moratorium period
- The loan offers the option to the borrower to pay the interest portion during the moratorium period. If the borrower chooses to do so, the interest rate is reduced by 1% for the tenure of the loan. No concession is applicable after the commencement of the repayment period
Repayment
- Loans of up to 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
- The repayment moratorium for courses of less than 1 year is equal to the sum of the course duration and an additional grace period of 6 months after course is completed
- The repayment moratorium for courses of over 1 year duration is equal to the sum of the course duration and an additional grace period of 12 months after course is completed
Security Needed
- Bank of India does not ask for any collateral or third party guarantee
- However, the parents have to sign the loan documents with the student as joint borrowers
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
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
Borrower Contribution to Total Cost (Margin Money)
- Bank of India does not charge any margin money on this loan
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 the Loan
- The loan amount can be used to pay any fees or other charges that are a part of the standard tuition cost
- The loan can also be met to cover examination, library and laboratory fees
- It also covers any caution deposit fees
- It can also be used to buy books or equipment or instrument needed for the course
Other Features to Know
- The borrower can repay the loan from any time without having to pay any prepayment charges
- Bank of India offers optional insurance cover to borrowers. The premium is recovered through EMIs
- During application, the borrowers should provide an affidavit that they have not taken an education loan from another bank
- The student’s progress report has to be submitted with the bank after each term or semester before availing the next instalment
- The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant(s)
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
- An Income Certificate from a Competent Authority to avail the interest subsidy under Central Interest Subsidy Scheme of Education Loans, if eligible
Reference Facts
- Bank of India Website: www.bankofindia.com and www.bankofindia.co.in
- Headquarters: Mumbai, Maharashtra
- Call Centre Toll-Free Number: 1800 220 229, 1800 103 1906