Skill Loan Scheme

A loan designed for students pursuing technical courses. Any Indian national who has secured admission in a course run by Industrial Training Institutes or National Skill Qualification Framework., etc shall be covered by skill loan

Applicability of The Scheme

This scheme is applicable at all our branches across the country.

Training Institutes

• Any individual who has secured admission in a course run by the following is eligible for a Skill Loan:
• Industrial Training Institutes (ITIs)or Polytechnics
• In a school recognized by central or State education Boards
• In a college affiliated to recognized university
• Training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a certificate/diploma/degree issued by such organization as per National Skill Qualification Framework (NSQF).

Training Courses

Courses run by above mentioned training institutes aligned to National Skill Qualification Framework (NSQF) shall be covered by the Skill Loan. There is no minimum course duration. Vocational/Skill development courses of duration from 2 months to 3 years run or supported by a ministry/department/organization of the govt. or a company/society/organization supported by National Skill Development Corporation(NSDC) or State Skill Missions /State Skill Corporations, preferably leading to a certificate/diploma/degree issued by a government organization or an organization recognized/authorized by the government to do so. State Level Bankers committee(SLBC)/State level Coordination Committee(SLCC) may add other skill development courses/programmes, having good employability. Approved courses/training programs as per the National Skill Certification and Monetary Reward Scheme.

Nationality

The applicant should be an Indian national.

Minimum Age

There is no specific restriction with regard to the age of the student to be eligible for Skill Loan. However, if the student is a minor then the parent has to execute documents for the loan. The bank will obtain a letter of acceptance/ratification from him/her upon attaining majority.

Minimum Qualification

As required by the enrolling institutions/organizations as per NSQF.

Know your customer (KYC) norms

Aadhar card number will also be considered as a valid proof for KYC norms in addition to other identity and address proof as determined by respective banks/lending institutes.

• Servicing of interest during Study Period and Moratorium Period shall be at the option of the borrower.
• For girl students, an incentive in the form of 0.50% Interest Concession shall be provided as being provided under our Education Loan Product.
• The effective rate of interest should not go below the BRLLR at any instance (with or without concessions if any).

Processing Charge/documentation Charges:

NIL

Pre-payment charges under fixed rate loan is as under-

• KYC of applicant and co-applicants
• Academic Records
• Proof of admission
• Entrance Exam Result(if applicable)
• Statement of cost of study/ Schedule of expenses
• Income Proof for Salaried Co-applicant/ Guarantor (if applicable)
• Bank account statement for last 6 months etc
• Property Documents (if applicable)

• Minimum Loan Amount: Rs. 5000
• Maximum Loan Amount: Rs. 1,50,000

Need based finance subject to repayment capacity of Student.

Coverage of expenses for

• Tuition fee/Course fee
• Examination /Library/Laboratory fee
• Caution Deposit
• Cost of Books/Equipments and Instruments
• Any other reasonable expenditure found necessary for completion of the course.

Unified Processing charges:

NIL

Security

No Collateral or third-party guarantee will be obtained, however, the parent will execute loan document along with the student borrower as joint borrower.

Moratorium Period

• Upon completion of the course, repayment will start after a moratorium period as indicated below
• Courses of duration upto 1 year-Upto 6 months from the completion of the course
• Courses of duration above 1 year-12 months from the completion of the course

Disbursement

Directly to / Institution.

Repayment Period

The loan will have tenure as follows

• Loans up to Rs. 50,000: Up to 3 years
• Loans between Rs. 50,000 to Rs. 1 lakh: Up to 5 years
• Loans above Rs 1 lakh: up to 7 Years

Insurance

Insurance : Group credit Life Insurance Cover will be available at the option and cost of the borrower. Cost of Insurance Premium may be financed by Bank by adding the same in the project cost and shall be recovered along with EMIs of the loan.

The Borrower can repay the loan any time after commencement of repayment WITHOUT having to pay any prepayment charges.