TMB - Skill Development Loan

About the TMB - Skill Development Loan

The TMB - Skill Development Loan helps students take vocational and skill-based classes by giving them specific financial aid. This education loan is tailored to support individuals seeking industry-relevant training by covering core academic expenses. With a student-friendly structure and simple documentation process, it ensures easy access to funds. The repayment terms are designed to accommodate a range of financial situations, promoting long-term affordability.

TMB - Skill Development Loan - Rates of Interest

The interest rate for the TMB - Skill Development Loan varies based on your chosen interest type.

• Effective ROI: 10.90%

Note: The rates reflect Tamilnad Mercantile Bank's 17 June 2025 terms. RBI Repo Rate variations and bank lending policy changes may affect them.

Features of TMB - Skill Development Loan

Here are some of the key features of the TMB Skill Development Loan Scheme:

• Tax Advantages: Interest paid on the loan may be claimed under Section 80E of the Income Tax Act.

• Flexible Repayment: After the moratorium (course + 1 year), loan repayment is via convenient EMIs, internet banking, standing instructions, mobile banking, or post-dated cheques. 

• Skill Development Plan Support: This loan funds vocational, technical, and skill-enhancement courses across India for a child education plan. 

• Quick Processing: There is no filing fee for Indian student loans, but a fee of 1% of the approved amount for foreign student loans. 

• Margin Requirements:

  • Up to ₹4 lakh: 0% margin

  • Above ₹4 lakh (India): 5% margin

  • Above ₹4 lakh (abroad): 15% margin

• Collateral Security Requirements:

  • Up to ₹4 lakh: no collateral

  • ₹4–7.5 lakh: third-party guarantee and co-borrower

  • ₹7.5 lakh and above (max ₹20 lakh abroad): collateral required (e.g., property documents)

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

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*Standard T & C Apply

Eligibility of the TMB - Skill Development Loan

Applicants must meet certain standards before being considered for a TMB - Skill Development Loan. Some of these are:

• Citizenship: You have to be an Indian native.

• Academic Performance: In the last public test, they had to get a first-class grade.

• Admission Requirement: Must already have a spot in an approved school in India or another country.

• Co-applicant Requirement: Parents or guardians can receive credit for students under 18 under specific conditions.

• Loan Purpose: Only for professional or technical classes that help you improve your skills.

Documents Required for TMB - Skill Development Loan

The following documents must be sent in for the TMB - Skill Development Loan application to move forward:

• Identity Proof: Aadhaar Card, Passport, Voter ID, or PAN Card of both the student and the parent/guardian

• Address Proof: Utility Bill, Aadhaar Card, Passport, Ration Card, or Rent/Lease Agreement

• Photographs: Recent passport-sized photographs of the student and the co-applicant

• Education Records: Photocopies of relevant mark sheets (10th, 12th, graduation, etc.)

• Admission Proof: Admission or offer letter from the institution and ID card, if available

• Income Proof: Bank statements for the last six months, Form 16 or ITR of parent/guardian, PAN Card of all parties 

• Course Expenses: Schedule of expenses—tuition, caution deposit, books, instruments, exam/library/lab fees

• Gap Certificate: Self-declaration if there’s a break in studies

Most Important Terms and Conditions

These are the main rules for the TMB - Skill Development Loan scheme:

• Quantum of Finance: TMB - Education Loan amounts depend on the course and individual need, assessed by repayment capacity.

• Repayment Tenure: The full repayment must be made within 5–7 years (with up to a 2-year extension, at the bank’s discretion)

• Child Investment Support: This loan does not apply to child investment plans. This loan is tailor-made for skill development programs only.

• Discontinuation Clause: Repayment cannot be deferred even if the course is discontinued mid-way

• Course Incompletion: The Tamilnad Merchant Bank education loan remains repayable whether or not the student completes the program