Skill Development Loan

get loans to upgrade your skills

Learn more about our Skill Development Loan Scheme under TMB Retail Loan Products.

Skill Development Loan

This is scheme of choice for individuals who wish to upgrade their skills to get get additional degree / diploma / certificates as per National Qualification Skill Framework. The cost of the study can be borne by the loan from us. The interest rate has been kept nominal to enable the current generations make the best use of the facilities offered and get their skills upgraded.

Skill Loan Scheme (herein after called "Skilling Loan") provides loan facility to individuals who intend to take up skill development courses aligned to National Occupations Standards and Qualification Packs and leading to a certificate/diploma/degree by the Training Institutes as per National Skill Qualification Framework (NSQF).
  • Training Institutes: 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.
  • 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.
  • 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 skilling loan. However, if the student is a minor, while the parent executes documents for the loan, the branch should 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: Aadhaar number will also be considered as a valid proof for KYC norms in addition to other identity and address proof.
Quantum of Finance
The minimum and maximum loan limit under this scheme is Rs. 5,000 and Rs. 1,50,000 respectively. 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.
Expenses considered for Loan
  • 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).
10% of the total course amount.
Rate of Interest
  • BR + 1.50% (11.90% p.a.).
  • Simple Interest should be charged during the study period and upto commencement of repayment, and will be compounded after that.
  • Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students.
  • 1% interest concession shall be provided by the bank, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.
  • Penal interest 2% will be levied on the overdue amount for the overdue period if any.
  • Current Base Rate for Lending (BR) is 10.40% p.a.
Processing Charges
No collateral and third party guarantee for such skilling loan should be taken. Instead, the branch should apply to the National Credit Guarantee Trust Company Ltd (NCGTC) for credit guarantee against defaults and NCGTC will provide such guarantee at nominal guarantee fee which shall not exceed 0.5% of the amount outstanding. Such credit guarantee cover will be for a maximum of 75% of the outstanding loan amount (including interest, if any).
Guarantee fee should be recovered from the borrower.
Moratorium Period
In order to instil repayment behaviour and get some commitments from the students, the branch may have instalment during the course period itself. However, the total amount paid by the student as down-payment and EMI during the course together should not exceed 10% of the total course value.
However, the branch shall consider moratorium for specific courses or certain sections of the students. Upon completion of the course, repayment will start after a moratorium period after 6 months from course completion for course duration upto 1 year and after 12 months for course duration above 1 year.
Loans upto Rs. 50,000 - Upto 3 years, Loans above Rs. 50,000 to Rs. 1,00,000 - Upto 5 years, Loans above Rs. 1,00,000 - Upto 7 years.
The borrower can prepay the loan any time after commencement of repayment without having to pay any prepayment charges.

Loan EMI Calculator:

Loan EMI Calculator

Base Lending Rate 10.40% p.a. updated Oct 15, 2015.

For a Skill Development Loan of Rs. 1,00,000 repayable in 36 equal monthly installments at an interest rate of 11.90% p.a., the equated monthly installment (EMI) payment shall be around Rs. 3,316.66. Click for Monthly Amortization Chart.

All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.