Stipend

A stipend is a regular fixed sum of money paid for services or to defray expenses, such as for scholarship, internship, or apprenticeship. It is a payout given to individuals who are not regular employees of the company like interns and trainees. It is normally a nominal remuneration just enough to offset some expenses of the interns and trainees. 

Stipends are not calculated on hourly work and are used by employers as a low-cost option to pay interns. Interns and trainees get valuable knowledge and experience with the company.  Considering that obtaining training at institutes is an expensive affair, most individuals opt for the internship based on the stipend. This way the interns get knowledge and experience free of any fee and the company gets fresh talent and helping hands.