The Ministry of Skill Development and Entrepreneurship has introduced the Skill Loan Scheme to provide financial assistance to individuals who wish to pursue skill development courses. This scheme aims to support youth in acquiring new skills, enhancing their employability, and promoting entrepreneurship.
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This Scheme is applicable to all member banks of the Indian Banks’ Association (IBA) and any other banks and financial institutions as may be advised by the RBI. The Scheme provides broad guidelines to the banks for operationalizing the skilling loan scheme.
Overview
| Parameter | Details / Loan Amount |
| Courses | Aligned NSQF |
| Duration of Course | No minimum duration |
| Quantum of Finance | Rs. 5000-1, 50, 000 |
| 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 |
| Loans Amount | Rs. 50, 000 upto 3 years |
| Loans between | Rs. 50, 000 to Rs. 1 lakh – upto 5 years |
| Loans above | Rs. 1 Lakh – upto 7 years |
Eligibility Criteria
- it is, Polytechnics / or School recognized by entral 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 Mission, State Skill Corporation.
Application Process and Selection process
- Candidates who want to apply for this scheme they need to register on the Vidya Kaushal Portal.
- Post Successfully registration, Candidate can select their preferred sector/ role/ centre.
- Visit the centre of you choice for counselling.
- Raise Loan request through the centre, if required.
- Evaluate and accept/ reject loan offers based on preference
- Disbursement of the load directly to partner/ Centre post- confirmation.
How to apply for skill loan scheme?
Candidates Can apply for this scheme from Vidya Kaushal Portal i.e. https://vikaspedia.in/
Required Documents
- Proof of Identity
- Proof of address
- Proof of Income (or self or Guadian, if available)
Objectives
- Provide financial assistance to individuals for skill development courses
- Promote skill development and entrepreneurship
- Enhance employability and job prospects
- Support inclusive growth and development
FAQs
Student satisfying the eligibility can avail the loan amount upto Rs. 1, 50,000.
MCLR is the minimum lending rate below which a bank is not permitted to lend. It varies from bank to bank.
Moratorium period refers to a particular period of a loan tenure during which the borrower does not have repay anything. Moratorium period like a waiting period before the borrower will have to start paying the equated monthly installments (EMIs) for his or her loan.