Karnataka Bank Skill Loan

Karnataka Bank 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 KBL 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 Karnataka 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 up to Rs. 1.5 lakh depending on the duration of the course

Interest

  • As of November 2020, the interest rate for this study loan for skill development courses is 9.49%
  • Simple interest is charged monthly during the repayment moratorium period

Moratorium

  • As of November 2020, these details are not available on the bank’s website. Please check with the bank for details

Repayment

  • Repayment period is up to 7 years after the end of moratorium period

Security Needed

  • As of November 2020, these details are not available on the bank’s website. Please check with the bank for details

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

  • Students of 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
  • Even students pursuing a 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
  • There is no minimum course duration

Borrower Contribution to Total Cost (Margin Money)

  • As of November 2020, these details are not available on the bank’s website. Please check with the bank for details

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
  • 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 guarantor along with details of applicant and/or guarantor and family
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs 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 as proof of admission
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required

Reference Facts

  • Karnataka Bank Website: www.karnatakabank.com
  • Headquarters: Mangalore, Karnataka
  • Call Centre Toll-Free Number: 1800 425 1444