Skill Loan Scheme (herein after called ‘Skilling Loan’) aims at providing a loan facility to individuals who intend to take up skill development courses as per the Skilling Loan Eligibility Criteria.

Student Eligibility

Any individual who has secured admission in a course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by central or State education Boards or 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) is eligible for a Skilling Loan. The Government of India / State Governments may, from time to time, notify institutes/organizations for the purpose.


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.


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 skilling loan. However, if the student is a minor, while the parent executes 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.

Quantum of Finance

Loans will be in the range of Rs. 5,000/- to Rs. 150,000/-.

Expenses Considered for Loan

Tuition / course fee, any other reasonable expenditure found necessary for completion of the course including but not limited to assessment fee, Examination fee, Library charges, Laboratory fee, Caution deposit, Purchase of books, equipment’s and instruments



Rate of Interest

Particulars Rate of interest
Revised uniform Rate of Interest for New loans w.e.f. 09-06-2017 1 Year MCLR + 1.50%

Processing Charges

All linked to Banks MCLR
BOI MCLR 8.70 % w.e.f. 10.12.2018
(All charges are Exclusive of GST)
1 Year MCLR + 1.50%
1 % interest concession may be provided for loanees, if the interest is serviced during the study period when repayment holiday is specified for interest/repayment under the scheme. No concession will be available after commencement of repayment.


No collateral or third party guarantee will be taken. 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


The loan will be repaid after moratorium period in Equated Monthly Installments (EMI’s) as follows : Loans up to Rs. 50,000/- Up to 3 years Loans between Rs. 50,000/- to Rs. 1.00 lakh Upto 5 years Loans above Rs. 1.00 lakh Upto 7 years


Optional at the requirement of the borrower. For further information, you may contact nearest branch of the Bank. Loan at the sole discretion of Bank of India.