Looking for an Education Loan to Finance Your Technical Education?

Look no further. This page contains all the information you will need on SBI’s Skill Loan Scheme for technical courses.

State Bank of India Skill Loan

This loan helps students who have gained admission into technical courses offered by Industrial Training Institutes (ITIs), polytechnics and other recognised institutions 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 SBI 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, training institute (ITI), etc. in India
  • The bank disburses the State Bank of India Skill Loan 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

  • The rate of interest is a sum of 3-year MCLR and a factor of 2% where MCLR is the Marginal Cost of Funds-Based Lending Rate (MCLR). As of October 2020, the 3-year MCLR of SBI is 7.30% which makes the effective rate of interest 9.30% for the SBI Skill Loan

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 for 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 for the course duration and an additional grace period of 12 months after course is completed

Security Needed

  • State Bank of India does not ask for any security or third party guarantee. However, the parents have to sign the loan documents with the student as joint borrowers. If the child is a minor, then parents can take the loan

Eligibility

  • The borrower should be an Indian national
  • The student must have secured admission into a technical course offered by a recognised institute in the country

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)

  • The bank 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 student’s progress report may have 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)

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
  • Personal Identification Proofs (Any One) of the Student and Co-borrower: Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One) of the Student and Co-borrower: Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus
  • Statement of the cost of study and Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • Copy of Passport is mandatory
  • Proof of Income of the Co-borrower (Salaried): Salary Slip of last 3 months, Copy of Form 16 of last 2 years and Bank Account Statement of last 6 months
  • Proof of Income of the Co-borrower (Self-employed): Business Address Proof, IT return of last 2 years, TDS Certificate, Bank Account Statement of last 6 months and Certificate of Qualification if Doctor, CA, etc.
  • All documents must be self-attested

Reference Facts

  • State Bank of India Website: www.sbi.co.in and www.onlinesbi.com (net banking)
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 11 2211, 1800 425 3800