Investing in skill-based or bootcamp programs can significantly enhance career prospects, especially in high-demand fields like coding, data science, and digital marketing. However, these programs often require upfront payment, which can be a challenge for many learners. Fortunately, several banks and NBFCs (Non-Banking Financial Companies) offer education loans tailored for such programs.
Loan Options for Skill-Based and Bootcamp Programs
If you’re looking to finance your skill-based education, here are some of the best loan options available.
1. Traditional Bank Loans
Several banks provide education loans for skill-based courses, though eligibility may depend on the program’s recognition.
- State Bank of India (SBI): Offers education loans under its Skill Loan Scheme, financing vocational and skill development courses.
- HDFC Bank: Provides education loans with flexible repayment options for short-term professional courses.
- ICICI Bank: Offers loans for skill-based programs, particularly those affiliated with recognized institutions.
- Axis Bank: Supports education loans for professional certification and bootcamp courses.
- Punjab National Bank (PNB): Provides financial support for vocational and short-term skill development programs.
2. NBFCs Offering Loans for Bootcamp Programs
NBFCs are often more flexible than traditional banks, approving loans based on potential future earnings rather than just credit history.
- Propelld: Specializes in education loans, offering quick approval and customized repayment plans.
- Credila (An HDFC Ltd. Company): Finances skill-based courses with easy EMIs and extended repayment periods.
- Avanse: Provides funding for vocational and professional courses, even without collateral.
- Eduvanz: Focuses on interest-free loans and skill-based financing solutions.
- GrayQuest: Offers no-cost EMI plans for students enrolling in bootcamp programs.
- Financepeer: Provides student-friendly financing options with minimal processing time.
Eligibility Criteria for Loans
Eligibility varies by lender but typically includes:
- Admission into a recognized skill-based or bootcamp program.
- A co-applicant (parent/spouse) for applicants without a stable income.
- Basic KYC documents, proof of admission, and income details for loan approval.
Understanding the NSQF Framework
The National Skills Qualifications Framework (NSQF) is a competency-based framework that organizes qualifications based on levels of knowledge, skills, and aptitude. Many lenders prefer financing courses aligned with NSQF as they ensure industry relevance and employability. If your chosen program is NSQF-certified, you may have a better chance of securing a loan.
NSQF-Certified Programs Eligible for Loans
Many skill-based programs under NSQF certification are eligible for education loans. Some of these include:
- IT and Software Development Courses
- Healthcare and Paramedical Training
- Automobile Repair and Maintenance
- Banking and Financial Services
- Hospitality and Tourism Management
- Construction and Infrastructure Training
- Retail and E-commerce Skills
Since NSQF ensures standardized skill training, many banks and NBFCs offer education loans for these programs, provided they are conducted by recognized training partners.
Repayment Terms and Interest Rates
Understanding the repayment terms is crucial before applying for a loan. Here’s what you need to know:
- Interest Rates: Range from 8% to 15%, depending on the lender and applicant profile.
- Repayment Period: Flexible tenure from 6 months to 5 years.
- Moratorium Period: Many lenders, especially for education loans without collateral, offer a moratorium period allowing students to begin repayment after completing their course or after a grace period of 6–12 months..
Education loans for skill-based and bootcamp programs are becoming increasingly accessible, with both banks and NBFCs offering customized financing solutions. Whether through traditional banks or specialized NBFCs, learners can secure funding to upskill and advance their careers without financial strain.
FAQs
Can I get a loan for an online bootcamp program?
Yes, many lenders provide loans for online bootcamp programs, especially if the institution is recognized and offers job placement support.
Do I need a co-applicant for a skill-based loan?
It depends on the lender. Some NBFCs offer loans without a co-applicant, while banks usually require one if the applicant has no stable income.
What is the maximum loan amount I can get for a bootcamp program?
Loan amounts vary but typically cover up to 100% of the course fees, ranging from INR 50,000 to INR 10 lakh, depending on the lender.
Are skill-based loans available without collateral?
Yes, most loans for bootcamp programs are unsecured, meaning no collateral is required.
Can I get an education loan for short-term courses?
Yes, many banks and NBFCs provide education loans for short-term professional courses, including certification and upskilling programs.
How long does loan approval take for bootcamp programs?
NBFCs usually approve loans within a few hours to a couple of days, while banks may take up to a week.
When do I have to start repaying my skill-based loan?
Some lenders offer a moratorium period where repayment starts after course completion, while others require immediate EMIs.
Is there a government scheme for skill-based education loans?
Yes, the government offers schemes supporting skill development, and many NSQF-aligned programs qualify for education loans under various financing options.
