Skill Loan Scheme
Introduction:
- Skill Loan Scheme launched in July 2015
- Provides institutional credit for skill development courses aligned with NSQF leading to certificate/diploma/degree by training institutes.
Ministry/Agency:
- Ministry of Skill Development and Entrepreneurship
Objectives:
- To provide credit for skill development courses aligned with NSQF
- To facilitate skill development of individuals.
Benefits:
- Courses aligned with NSQF
- Quantum of finance up to Rs. 1.5 lakhs
- No minimum duration for courses
- Base rate + 1.5% interest
- Moratorium period for the duration of the course
- Repayment period of 3-7 years
- Loan coverage for course fees and expenses
- No collateral required
- Credit Guarantee Fund for Skill Development for loans sanctioned on or after 15th July 2015
Eligibility:
- Any individual who has secured admission in a course run by ITIs, Polytechnics, schools/colleges recognized by education boards/universities, training partners affiliated to NSDC/Sector Skill Councils, State Skill Mission, State Skill Corporation.
Implementation Strategy:
- Applicable to member banks of Indian Banks’ Association and other banks and financial institutions advised by RBI
- Guidelines provided to banks for operationalizing the skilling loan scheme.
