The cost of vocational and skill development courses can be a challenge for learners, particularly when course fees and other expenses need to be paid upfront. Skill loans can help bridge this gap by providing financing for eligible training programs and making it easier for learners to access job-oriented courses.
Several banks offer dedicated skill-loan schemes with different eligibility criteria, loan limits and repayment terms. Here are five skill-loan options offered by the banks discussed below, along with key details on the courses covered, eligibility and financing available.
Here are five skill-loan options from the banks mentioned below.
1. Punjab National Bank – PNB Kaushal
PNB Kaushal is an education loan scheme for individuals taking up vocational training and skill development courses. The scheme covers NSQF-aligned courses as well as eligible non-NSQF courses offered by training entities onboarded on the Skill India Digital Hub (SIDH).
Key features
- Loan amount: ₹5,000 to ₹7.5 lakh
- Eligibility: Indian nationals who have secured admission and meet the eligibility requirements for an eligible skill-development course
- Eligible courses: NSQF-aligned courses and eligible non-NSQF courses offered through training entities onboarded on SIDH
- Expenses covered: Tuition/course fees, examination, library and laboratory fees, caution deposit, books, equipment and instruments, and other reasonable expenses required to complete the course
- Security: Parent/guardian as joint borrower; no collateral or third-party guarantee is required
- Repayment: Up to 3 years for loans up to ₹50,000, up to 5 years for loans between ₹50,000 and ₹1 lakh, and up to 7 years for loans above ₹1 lakh
2. Indian Bank – IB Skill Loan
Indian Bank’s IB Skill Loan is designed to provide financial assistance to individuals pursuing vocational training and skill development courses.
The scheme covers NSQF-aligned courses and eligible non-NSQF courses offered by training entities onboarded on the MSDE’s Skill India Digital Hub.
Key features
- Loan amount: ₹5,000 to ₹7.5 lakh
- Eligibility: Indian citizens who have secured admission and meet the minimum qualification requirements for an eligible course
- Eligible institutions: ITIs, polytechnics, recognised schools and colleges, NSDC/Sector Skill Council-affiliated training partners, State Skill Missions and State Skill Corporations
- Course duration: No minimum course duration is specified
- Expenses covered: Tuition/course fees, assessment and examination fees, library and laboratory fees, caution deposit, books, equipment and other reasonable course-related expenses
- Security: No collateral is required; loans are covered under the applicable credit guarantee framework
- Repayment: Up to 3 years for loans up to ₹50,000, up to 5 years for loans above ₹50,000 and up to ₹1 lakh, and up to 5 years for loans above ₹1 lakh.
3. State Bank of India – SBI Skill Loan Scheme
The SBI Skill Loan Scheme provides financial assistance to individuals pursuing eligible skill development courses. The scheme covers courses offered through ITIs, polytechnics and eligible training partners and institutions under the skill-development framework.
The SBI Skill Loan Scheme provides financing of up to ₹7.5 lakh for eligible skill development courses.
Key features
- Loan amount: ₹5,000 to ₹7.5 lakh
- Eligible courses/institutions: Eligible vocational and skill-development courses offered through ITIs, polytechnics and recognised training institutions
- Margin: Nil
- Security: No collateral for eligible loans covered under the applicable credit guarantee framework
- Repayment: Up to 3 years for loans up to ₹50,000, up to 5 years for loans between ₹50,000 and ₹1 lakh, and up to 7 years for loans above ₹1 lakh
- Moratorium: Up to 6 months after completion for courses of up to one year and up to 12 months for longer courses
4. Bank of Maharashtra – Maha Bank Skill Loan Scheme
The Maha Bank Skill Loan Scheme is intended to provide affordable financial assistance to individuals pursuing vocational training and skill development courses.
Key features
- Loan amount: ₹5,000 to ₹7.5 lakh
- Eligible courses: NSQF-aligned courses and eligible non-NSQF skill-development courses offered by training entities onboarded on SIDH
- Eligible institutions: ITIs, polytechnics, recognised schools and colleges, and eligible NSDC/Sector Skill Council and State Skill Mission/Corporation-affiliated training partners
- Security: No collateral or third-party guarantee is required
- Co-borrower: Parent/guardian as joint borrower; spouse or parents/parents-in-law may be co-borrowers in specified cases
- Processing charges: Nil
- Repayment: Up to 3 years for loans up to ₹50,000, up to 5 years for loans above ₹50,000 and up to ₹1 lakh, and up to 7 years for loans above ₹1 lakh
- Moratorium: Up to 6 months after completion for courses up to one year and up to 12 months for courses longer than one year
5. Bank of Baroda – Baroda Skill Loan Scheme
The Baroda Skill Loan Scheme supports students pursuing technical and skill-development courses through eligible training institutions.
The scheme is available across Bank of Baroda branches and covers courses offered through ITIs, polytechnics, recognised schools and colleges, and eligible NSDC/Sector Skill Council and State Skill Mission/Corporation-affiliated training partners.
Key features
- Loan amount: ₹5,000 to ₹7.5 lakh
- Eligible courses: Vocational and skill-development courses, including eligible NSQF-aligned courses
- Age: No specific age restriction is stated for the Skill Loan Scheme
- Margin: Nil
- Processing/documentation charges: Nil
- Security: No collateral or third-party guarantee; the parent joins as a co-borrower
- Expenses covered: Tuition/course fees, examination, library and laboratory fees, caution deposit, books, equipment and instruments, and other reasonable expenses needed to complete the course
- Repayment: Up to 3 years for loans up to ₹50,000, up to 5 years for loans between ₹50,000 and ₹1 lakh, and up to 7 years for loans above ₹1 lakh
- Moratorium: Up to 6 months after completion for courses of up to one year and up to 12 months for courses longer than one year
Also read: How Skill Finance Can Make Job-Oriented Training More Accessible
Key Points to Consider
The eligibility criteria and lending conditions for skill-loan schemes can vary across banks and may change over time. Learners should check the bank’s latest official information before applying, particularly for interest rates, eligible courses, documentation, repayment terms and application procedures.
It is also important to confirm that the specific training program and institution meet the bank’s eligibility requirements. The availability of a skill-loan scheme does not automatically mean that every skill course qualifies for financing.
For learners considering a skill-development program, comparing the eligible course, total cost, loan amount, interest rate, repayment period and other applicable conditions can help them understand the financing commitment before applying.
