IDBI Skill Loan Scheme

About the IDBI Skill Loan Scheme?

The IDBI Skill Loan scheme is made to help more students, especially those from low-income families, get vocational education. It supports courses offered by ITIs, polytechnics, NSDC-affiliated institutions, and other NSQF-recognised centres, covering key costs like tuition, exams, and other necessities. The scheme requires a joint borrower for documentation but no guarantor, making the education loan easier to access.

IDBI Skill Loan Scheme – Rate of Interest

IDBI skill loan scheme rate of interest is fixed at 9.95% for all eligible vocational and skill development courses, as per the current terms. This IDBI Bank education loan rate is linked to the bank’s Repo Linked Lending Rate (RLLR) and may be subject to periodic revision.

Note: The rates are updated as per IDBI Bank’s latest terms as of 17 June 2025.

Features of IDBI Skill Loan Scheme

Key highlights of the IDBI Skill Loan Scheme include:

• No Collateral Required: No third-party guarantee or security is needed. However, a parent or guardian must sign as a joint borrower.

• Eligible Expenses Covered: Tuition fees, lab/exam/library fees, books, equipment, caution deposit, and other necessary course-related costs.

• Tax Implications: Interest payments qualify for deductions under the Income Tax Act, 1961. Borrowers can use an income tax calculator to estimate their potential savings from interest deductions available under Section 80E.

• Loan Amount & Flexibility: Students can avail up to ₹50,000 for courses up to 6 months and up to ₹1.5 lakhs for courses longer than 6 months. With flexible repayment and a post-course moratorium, it ensures minimal financial pressure during training.

Eligibility of the IDBI Skill Loan Scheme

To apply for the IDBI Skill Loan, students must meet the following basic requirements:

• Nationality: Must be an Indian national.

• Course Admission: Must have admission in an NSQF-aligned institute like ITI, polytechnic, or NSDC-approved centre.

• Course Eligibility: Any government-recognised skill or vocational course is eligible; no minimum duration needed.

Documents Required For IDBI Skill Loan Scheme

When applying, ensure you have the following:

1. Common Documents (Required from both applicant and co-applicant)

   • Completed application form

   • Declaration/affidavit by the applicant confirming no educational loan has been availed from other banks

   • Demand Promissory Note (DPN)

   • Age proof (e.g., Birth Certificate, Aadhaar)

   • Identity proof (e.g., Aadhaar, PAN Card, Passport)

   • Address proof (e.g., Utility Bill, Aadhaar, Passport)

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2. Applicant Documents

   • Mark sheets of the last qualifying examination

   • Proof of admission (required before loan disbursement)

   • Details of scholarship, if applicable

   • Schedule of expenses for the course

3. Co-applicant Documents

   • Signature proof

   • Proof of employment or income, based on category:

   • Salaried:

     • Last 3 months’ salary slips, or

     • Salary account statement with salary credits for the last 3 months

   • If additional income (e.g., rent, pension) is considered:

     • Supporting documents like ITR, rent agreement, or bank statement

   • Self-employed professionals/non-professionals:

     • CA-certified or audited Profit & Loss statement and Balance Sheet for the last 2 years

   • Others:

     • Income certificate issued by a competent authority (e.g., Tahsildar, BPL card issuing authority)

These documents are essential whether you’re planning a skill-based child investment plan or supporting your own education.

Most Important Terms and Conditions

Here are the key terms and conditions of the IDBI Skill Loan Scheme:

1. Co-Applicant Requirement

   A co-applicant is required for all education loans. Preferably, a parent should join. If not possible, a close relative may be included, with valid proof of relationship.

2. Repayment Tenure and Moratorium Period

   The education loan repayment begins after a moratorium period, which depends on the course duration:

   • For courses up to 1 year: 6 months after completion

   • For courses over 1 year: 12 months after completion

   Following the moratorium, the repayment period is structured as:

   • Loans up to ₹50,000: Up to 3 years

   • Loans from ₹50,001 to ₹1,00,000: Up to 5 years

   • Loans above ₹1,00,000: Up to 7 years