आईबीए मॉडल कौशल ऋण योजना

The salient features of the " IBA Model Skill Loan Scheme/Kaushal Wrin Yojana " are as under :


i) Student Eligibility

-> should be an Indian National.
-> Have 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.

ii) Courses Eligible

Courses run by above mentioned Training Institutes aligned to National Skill Qualification Framework (NSQF) shall be covered by the Skill Loan.

Minimum Age

There is no specific restriction with regard to the age of the student to be eligible for the loan. However, if the student is a minor, while the parent executes documents for the loan, the Branch to obtain a letter of ratification from him / her upon attaining majority.


Loans will be in the range of Rs. 5,000/- to Rs. 150,000/-. 
The estimated per month fees, based on sector & NSQF level, will be available with the NSDC. Skill loan could be availed by beneficiaries of other grant/reward based Government schemes for skill training to cover the cost of such skill training not covered under such grant/reward.


Tuition / course fee. Banks shall pay such tuition / course fee directly to the Training Institute
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 (As such courses are localized boarding, lodging may not be necessary based on the cost of living in the particular area.  However, wherever it has been found necessary, the same could be considered on merit).

Nominal margin money as down-payment from the student, to keep the student serious about the course. However, the down-payment and the amount paid as Interest during the course together should not exceed 10% of the total course amount.


For latest interest rate refer to latest HO guidelines.
Simple interest to be charged during the study period and upto commencement of repayment.
Note :

-> Servicing of interest during study period and moratorium period till commencement of repayment is optional for students.
-> 1% interest concession may be provided if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.



No security or third party guarantee to be taken. However, the parent will execute loan documents along with the student borrower as joint borrower.
All  the loan under the Scheme will be covered under Credit Guarantee Scheme managed & operated by National Credit Guarantee Trust Company Ltd (NCGTC). Guarantee Fee @ 0.50% of the amount outstanding will be paid by Bank.

Upon completion of the course, repayment will start after a moratorium period as indicated below :

-> For courses of duration upto 1 year     : 6 months from the completion of the course.
-> For courses of duration above 1 year  : 12 months from the completion of the course.


The loan to be repaid after the moratorium period in Equated Monthly Instalments (EMIs) as follows :

Loans upto Rs.50,000/-        :              Upto 3 years
Loans between Rs.50,000/- :               Upto 5 years
to Rs.1.00 lakh
Loans above Rs.1.00 lakh    :              Upto 7 years


Optional at the requirement of the borrower.


The borrower can repay the loan any time after commencement of repayment without having to pay any pre-payment charges.


All other terms and conditions as applicable to "IBA Model Skill Loan Scheme/Kaushal Wrin Yojana "