A detailed guide on education loans for Vocational Courses
By Neelima Shankar
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Vocational courses are those which train students for employment in fields that are manual or practical in nature. These are traditionally non academic courses and often relate totally to a particular trade or occupation. They are also known as technical or professional programs as the student is directly developing expertise in a specific vocation, technology or series of procedures.

Some popular vocational courses in India include beauty care and hair dressing, tailoring, mobile repairing, repairing of electronic appliances, electrical technician, library assistant and so on. Training in these courses is offered by ITIs (Industrial Training Institutes), ITCs (Industrial Training Centres), polytechnic institutes and other technical bodies, which are either run by the government or private institutions.

Government statistics reflect about half of the students enrolled in these courses having left training in between for lack of funds. This highlights the importance and necessity of education loans for these courses. Banks have started providing loan schemes for vocational courses only recently after Indian Banks' Association came up with the Model Loan Scheme for Vocational education.

Features of Education Loan schemes for vocational courses


  1. The student should be an Indian national having passed the 10th standard examination.
  2. The student should have secured admission in a course recognized by the central or the state government, which preferably leads to a certificate, diploma or degree and is employment oriented.
  3. The course can have a tenure ranging from 2-3 months to three years.


The expenses which are covered as part of the loan scheme are:

  1. Tuition fees or Course Fees
  2. Caution money
  3. Examination fees
  4. Library fees
  5. Laboratory fees
  6. Charges for the purchase of books, equipments and instruments
  7. Other expenditures required to complete the course

Loan amount

Depending upon the duration of the course, banks lend anywhere between Rs. 50, 000 to Rs. 1, 50, 000 for these small ticket loans.


No collateral or third party guarantee is asked for in these loans, but, banks require the parent/ guardian to be the co-borrower.

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(Comments Posted : 1) Post Your Comments
1. I would like to know which are the other banks are giving loans for vocational courses. Because here in Ratlam banks are saying they have'nt received the information from their HO. We are IIJT Business partners & we are NSDC partner center. Pls. advice. Deepak Gehani
Deepak Gehani (Posted: Sep 21, 2012)
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