Skill Loan Scheme

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).

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 (NSDC) / Sector Skill Councils, State Skill Mission, State Skill Corporation

Online

Interested candidates need to register on the Vidya Kaushal portal



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

Documents required– including, but not limited to proof of identity, proof of address, proof of income (of self or guardian, if available)