IBA Model (Vocational)



  • Loans for Indian nationals.
  • Should have secured admission to any eligible course run by any eligible Training Institutes.

Eligible 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.

Eligible Institutes

·         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 Skill Loan. The Govt. of India/State Governments may, from time to time, notify institutes/organizations for the purpose.

Expenses considered for loan

·         Tuition/course fee which shall be paid 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).

Quantum of Loan

·         Loans will be in the range of Rs.5,000/- to Rs.150,000/-.


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


Courses of duration upto 1 year

Upto 6 months from the completion of the course

Courses of duration above 1 year

12 months from the completion of the course



Loan Amount

Repayment Tenure

Up to Rs 50,000/-

Up to 3 years

Above Rs 50,000/- up to Rs 1.00 lakh

Up to 5 years

Above Rs 1.00 lakh

Up to 7 years


 ·         5% of total expenses/cost of the course.

Rate of interest

  • BR+1.80%=11.45% p.a. (floating)*

* 0.50% interest concession to girl students

  • Simple interest to be charged during the study period and up to the commencement of repayment
  • 1% Interest concession will be provided, if the interest is serviced during the study period and the moratorium period, till the commencement of repayment.

Processing charges

  • Nil


  • No collateral or third party guarantee. However, the parent will execute loan document along with the student borrower as Co-borrower.


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