Skill Loan Scheme

What is Skill Loan Scheme?

A Skill loan scheme by Ministry of Skill Development and Entrepreneurship to provide loan upto Rs. 1,50,000 to student who has secured admission in a course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by Central or State education Boards or in a college affil

Benefit

Courses Aligned to NSQF Quantum of Finance Rs 5000-1,50,000 Duration of Course No minimum duration Rate of Interest Base rate (MCLR) + an add on typically up to 1.5% Moratorium Duration of the course Repayment Period Between 3 to 7 years basis the amount of loan Loan Loans upto ₹ 50,000 - Upto 3 years Loans between ₹ 50,000 to ₹ 1 lakh - Upto 5 years Loans above ₹ 1 lakh - Upto 7 years Coverage Course Fees (directly to the training institute) along with expenses towards completion of the course (assessment, examination, study material, etc.) The scheme does not allow for a collateral to be charged from the beneficiary. MSDE, through a November 2015 notification, brought into force the Credit Guarantee Fund for Skill Development (CGFSSD) for all skill loans sanctioned on or after 15 July 2015, to be administered by the National Credit Guarantee Trust Company (NCGTC). Banks can apply to the NCGTC for credit guarantee against defaults and NCGTC will provide this guarantee at nominal fee which shall not exceed 0.5% of the amount outstanding. The guarantee cover will be for a maximum of 75% of the outstanding loan amount (including interest, if any).

Level

Central

Ministry / Dept.

Ministry Of Skill Development And Entrepreneurship

Benefit type

cash

Key eligibility

A student who has secured admission in a course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by Central or State education Boards or in a college affiliated to a recognized university, training partners affiliated to National Skill Development Corporation (NSD

Last verified

Recently

Benefits

Courses Aligned to NSQF Quantum of Finance Rs 5000-1,50,000 Duration of Course No minimum duration Rate of Interest Base rate (MCLR) + an add on typically up to 1.5% Moratorium Duration of the course Repayment Period Between 3 to 7 years basis the amount of loan Loan Loans upto ₹ 50,000 - Upto 3 years Loans between ₹ 50,000 to ₹ 1 lakh - Upto 5 years Loans above ₹ 1 lakh - Upto 7 years Coverage Course Fees (directly to the training institute) along with expenses towards completion of the course (assessment, examination, study material, etc.) The scheme does not allow for a collateral to be charged from the beneficiary. MSDE, through a November 2015 notification, brought into force the Credit Guarantee Fund for Skill Development (CGFSSD) for all skill loans sanctioned on or after 15 July 2015, to be administered by the National Credit Guarantee Trust Company (NCGTC). Banks can apply to the NCGTC for credit guarantee against defaults and NCGTC will provide this guarantee at nominal fee which shall not exceed 0.5% of the amount outstanding. The guarantee cover will be for a maximum of 75% of the outstanding loan amount (including interest, if any).

Eligibility

Documents Required

How to Apply

1. Step 1: Online application — step 1

   Interested candidates need to register on the Vidya Kaushal portal

2. Step 2: Online application — step 3

   Documents required– including, but not limited to proof of identity, proof of address, proof of income (of self or guardian, if available) Post successful registration, candidate can select their preferred sector/ role/ centre Visit the centre of your choice for counselling Raise loan request through the centre, if required Evaluate and accept/ reject loan offers based on preference Disbursement of the loan directly to partner/ centre post-confirmation

Sources & References

• Official scheme website ↗
• Source record ↗
• Information is summarised from official government sources. Verify all details on the official website before applying.