Unpaid Internships in India: Rules, When to Accept, When to Walk Away

Last updated: 13 October 2026 · By the Asuraa Team

Quick answer: Unpaid internships exist in India, and the main regulators' frameworks do not require a stipend: AICTE's internship policy says an internship may be compensated or non-compensated, and UGC's guidelines set hours and credits but no pay. Platforms can be stricter; Internshala does not allow unpaid internships except for NGOs and niche profiles such as law. Accept unpaid work only if it is short, mentored, documented in writing and costs you nothing.

Key takeaways

• The AICTE Internship Policy says an internship may be compensated or non-compensated, leaves the amount to the employer, and records in the synopsis whether the internship is paid or unpaid.
• UGC's internship guidelines for undergraduates set 60 to 120 hours after the fourth semester and an evaluation process but contain no stipend provision.
• Internshala says it does not allow unpaid internships except for NGOs and non-profits and niche profiles such as law and experimental physics, and its terms bar employers from charging applicants any fee.
• As of PIB's May 2026 release, the PM Internship Scheme pays Rs 9,000 a month subject to attendance plus a Rs 6,000 joining grant, so funded alternatives exist for eligible candidates.
• Walk away from any internship that charges you a fee, uses you for revenue work without pay, or refuses to put dates, hours and tasks in writing.

Are unpaid internships allowed in India?

Unpaid internships exist in India, and the main education regulators' internship frameworks do not require a stipend. The AICTE internship policy says an internship may be compensated or non-compensated and leaves the amount to the employer (AICTE Internship Policy), and the UGC's internship guidelines for undergraduates set hours, credits and evaluation but do not set any stipend (UGC guidelines).

That does not mean every unpaid arrangement is fair, or that every platform permits it. The rules that actually protect you most day to day are often the platform's own terms and the written offer you sign.

This is general information, not legal advice. Whether a specific arrangement amounts to employment under labour law depends on its facts; if you are in a dispute, speak to a lawyer or your college's legal aid cell.

What do AICTE, UGC and government schemes say about intern stipends?

The regulators treat the stipend as optional, while some government-run internship schemes pay a fixed amount.

Sources: AICTE, UGC, AICTE National Internship Portal, PIB, May 2026 and PIB, April 2026.

The practical takeaway: an unpaid internship can still count for college credit, but you should know before you accept that paid alternatives exist, including government-funded ones. Our guide to the PM Internship Scheme explains who qualifies.

Do job portals allow unpaid internships?

Some portals restrict unpaid internships more strictly than the regulators do. Internshala says it does not allow unpaid internships except for NGOs and non-profits and niche profiles such as law and experimental physics, and asks students to report employers who pressure them into unpaid work (Internshala).

Internshala's terms add that employers may not post unpaid roles unless the listing says so explicitly, must pay promised remuneration on time, must provide an offer letter, and may not charge applicants any fee, including test fees, security deposits or documentation fees (Internshala terms). Its search page also has a minimum-stipend slider, so you can filter out unpaid listings from the start (Internshala).

If you are comparing platforms, our list of the best job portals for freshers in India covers how each one handles listings.

When is it reasonable to accept an unpaid internship?

An unpaid internship is reasonable when the learning, credit or credential you get is clearly worth the time, the hours are limited, and nobody is asking you for money. These situations usually pass that test:

• NGO, non-profit or social-sector work, where budgets are genuinely limited and the work is mission-driven.
• Short academic or research internships under a professor, lab or institute that count toward your credits.
• Law, policy and some research fields, where unpaid chamber or research internships are common and the reference matters.
• Short, part-time projects of a few weeks where you get a named mentor and a portfolio piece.
• Internships required by your college for which no paid option fits your schedule or location.

Even then, insist on a written offer with dates, hours, tasks and the name of your mentor.

When should you walk away from an unpaid internship?

Walk away when the company profits directly from your work, when hours look like a full-time job, or when money flows from you to them.

1. They ask you to pay a registration, training, certificate or security fee. Internshala's terms bar employers from charging applicants any fee (Internshala terms). See our guide to fake internship scams in India.
2. The work is revenue work. Selling products, cold-calling for sales, or delivering client projects without pay.
3. Full-time hours for months with no stipend, no mentor and no learning plan.
4. The "assignment" is real work. Internshala asks students to report employers who disguise real work as an assignment (Internshala).
5. No written offer or a refusal to state dates, hours and tasks in writing.
6. "Stipend after performance review" with no amount or criteria written down.
7. Requests for Aadhaar, PAN or bank account opening at the shortlisting stage, which Internshala's terms bar employers from asking for (Internshala terms).

How do you evaluate an unpaid offer, step by step?

Use this sequence before you say yes.

1. Check whether a paid version exists. Filter for the same role with a minimum stipend on two portals and on Asuraa Jobs. If paid roles are plentiful, an unpaid one needs a strong reason.
2. Confirm the credit value. Ask your TPO whether this internship meets your AICTE or UGC hour requirement.
3. Get the offer in writing. Role, tasks, start and end date, weekly hours, mentor name, certificate and whether any stipend or reimbursement applies.
4. Verify the organisation. Website, registered address, LinkedIn presence and people who have interned there. Our guide on how to verify a company before applying walks through this.
5. Cost it out. Travel, food and data costs can make an unpaid internship cost you a few thousand rupees a month. Ask for reimbursement if so.
6. Set a limit. Agree on a fixed number of weeks and hours, and an end date.
7. Decide what you need at the end. A certificate, a reference, a portfolio item. Ask for them upfront.

What mistakes do students make with unpaid internships?

The common mistakes are accepting without a written offer and staying too long.

What do most guides on unpaid internships get wrong?

Most guides frame the question as "legal or illegal". For students, the more useful question is "who is setting the rules here?" The education regulators leave pay to the employer, but platforms such as Internshala restrict unpaid listings, government programmes such as the AICTE portal and the PM Internship Scheme pay stipends, and your written offer sets the rest. Choosing where you apply is therefore your strongest protection.

The second error is assuming unpaid means low quality. A short, mentored research internship with a professor can be worth more than a poorly supervised paid one. Judge by learning, mentorship and hours, not just by the stipend.

What should you do after accepting an internship?

After accepting, document everything so the internship pays off later even if it paid nothing now.

1. Save the offer letter and all email confirmation in one folder.
2. Keep a daily or weekly log of tasks; AICTE colleges will expect a signed diary (AICTE).
3. Ask for feedback at the midpoint and a written reference at the end.
4. Collect your certificate and, if needed, your signed report; see our guide to internship certificate and report format.
5. Use the experience to apply for a paid role next. Our hub on fresher jobs and internships in India and the guide to paid internships in India list where to look.

Related guides

• Fresher Jobs and Internships in India: How to Get Hired (2026)
• Internship Certificate and Report Format: What Colleges Expect
• How to Use Internshala Effectively: Profile, Filters, Application Tips
• How to Convert an Internship Into a PPO: What Managers Look For

FAQ

Is it legal for a company in India to offer an unpaid internship?

Unpaid internships are common in India, and AICTE's internship policy explicitly allows internships to be compensated or non-compensated, while UGC's guidelines set no stipend. Whether a particular arrangement is lawful can depend on its facts, such as whether it is really regular employment. This is general information, not legal advice; consult a lawyer for a specific dispute.

Does AICTE make stipends mandatory for internships?

No. The AICTE Internship Policy says an internship may be compensated or non-compensated and leaves the stipend amount to the employer, while encouraging industry to offer competitive incentives if they pay. It focuses instead on hours, credits, a daily diary, an internship report, an industry evaluation and a viva at the college.

Does Internshala list unpaid internships?

Internshala says it does not allow unpaid internships except for NGOs and non-profits and niche profiles such as law and experimental physics. Its terms also say employers cannot post unpaid roles unless the listing states this explicitly, and its search page has a minimum-stipend filter so you can exclude unpaid listings.

Should I pay for an internship that gives a certificate?

No. Paying for an internship or its certificate is a common scam pattern, and Internshala's terms bar employers from charging applicants any fee, including training, test or security deposits. If a programme charges you, treat it as a paid course, not an internship, and check whether your college will accept its certificate before paying anything.

Is an unpaid internship worth it for a fresher?

It can be, if it is short, has a named mentor, gives you a portfolio piece or reference, counts for college credit, and costs you little in travel. It is usually not worth it if the hours are full-time for months, the work generates revenue for the company, or paid roles in the same field are easy to find.

What should an unpaid internship offer letter include?

It should state the role, tasks, start and end dates, weekly hours, location or remote status, mentor's name, whether any stipend or reimbursement applies, and that a certificate will be issued on completion. It should be on company letterhead or sent from an official company email address, with the company's address and contact details.

Final thoughts

An unpaid internship is a trade of your time for learning, credit or a reference, so make sure the trade is explicit, short and in writing, and never pay to work. Before you accept, check whether paid roles in the same field are open on Asuraa Jobs.