Looking for an Education Loan to Finance Your Technical Education in India?

This is the right place to be. This page summarises the information you will need on Indian Bank’s IB Skill Loan Scheme for technical courses.

Indian Bank IB Skill Loan Scheme

This loan 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 IB 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), etc. in India
  • The bank disburses the Indian 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

Loan Amount

  • The minimum loan amount starts from Rs. 5,000 and the maximum amount can go upto 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 Above 6 Months: For these courses, the maximum loan amount available will be upto Rs. 1.5 lakh

Interest

  • The rate currently stands at 8.8%. It is tagged to the bank’s Marginal Cost of Funds Rate (MCLR)

Moratorium

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

Repayment

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

Security Needed

  • Indian Bank does not ask for any security or third party guarantee, however the parents have to sign the loan documents with the student as co-borrowers
  • Credit Guarantee Fund Scheme for Skill Development is available for this loan

Eligibility

  • The borrower should be an Indian national
  • The student must have secured admission in a technical course offered by a polytechnic, ITI, etc.

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
  • 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)

Borrower Contribution to Total Cost (Margin Money)

  • The bank may ask for 10% of total loan amount from the borrower as margin money

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 1.5 lakh in which case the borrower here may have to pay 10% or Rs. 15,000 while Indian Bank offers the rest.

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 can also be used to buy books or equipment or instrument needed for the course

Other Features to Know

  • The student’s progress report has to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the college, bookseller 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

Reference Facts

  • Indian Bank Website: www.indianbank.in
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 00 000, 1800 425 4422