Quick answer
Skill Loan Scheme is a Government of India scheme run by the Ministry of Skill Development and Entrepreneurship. Apply or learn more at www.myscheme.gov.in.
About the scheme
The Skill Loan Scheme was launched in July 2015 to provide institutional credit to individuals for skill development courses aligned to National Occupations Standards and Qualification Packs and leading to a certificate/diploma/degree by training…
The Skill Loan Scheme was launched in July 2015 to provide institutional credit to individuals for skill development courses aligned to National Occupations Standards and Qualification Packs and leading to a certificate/diploma/degree by training institutes as per National Skill Qualification Framework (NSQF).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. Salient features of the guidelines to banks for operationalizing the scheme:
| Level | Government of India |
|---|---|
| Ministry / department | Ministry of Skill Development and Entrepreneurship |
| Official website | www.myscheme.gov.in |
Benefits
Courses Aligned to NSQFQuantum of Finance Rs 5000-1,50,000Duration of Course No minimum durationRate of Interest Base rate (MCLR) + an add on typically up to 1.5%Moratorium Duration of the courseRepayment Period Between 3 to 7 years basis the amount of loanLoanLoans upto ₹ 50,000 – Upto 3 yearsLoans between ₹ 50,000 to ₹ 1 lakh – Upto 5 yearsLoans above ₹ 1 lakh – Upto 7 yearsCoverage 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
- 5% of the amount outstanding. The guarantee cover will be for a maximum of 75% of the outstanding loan amount (including interest, if any).EligibilityA 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
Eligibility
- Any individual 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 CorporationCourses – Aligned to NSQFQuantum of Finance – Rs 5000-1,50,000Duration of Course – No minimum durationRate of Interest – Base rate (MCLR) + an add on typically up to 1.5%Moratorium – Duration of the courseRepayment Period – Between 3 to 7 years basis the amount of loanLoans upto ₹ 50,000 – Upto 3 yearsLoans between ₹ 50,000 to ₹ 1 lakh – Upto 5 yearsLoans above ₹ 1 lakh – Upto 7 yearsCoverage – 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). As per the information provided by Indian Bank's Association (IBA) in respect of 21 Banks, a total skill loan of Rs 29.06 crore was disbursed during the year 2018-19 (as on September 2018).
How to apply
Mode: 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/ centreVisit the centre of your choice for counsellingRaise loan request through the centre, if requiredEvaluate
- and accept/ reject loan offers based on preferenceDisbursement of the loan directly to partner/ centre post
- confirmationDocuments
- RequiredDocuments required- including, but not limited to proof of identity, proof of address, proof of income (of self or guardian, if
- available)
Frequently asked questions
What is the maximum loan one can avail in the scheme?
Student satisfying the eligibility can avail the loan amount upto Rs. 1,50,000 .
What is MCLR under rate of interest?
Marginal Cost of Lending Rate (MCLR) is the minimum lending rate below which a bank is not permitted to lend. It varies from bank to bank.
What is moratorium period?
moratorium period refers to a particular period of a loan tenure during which the borrower does not have repay anything. It can be described as a waiting period before the borrower will have to start paying the equated monthly installments (EMIs) for his or her loan.
Where to apply in your district and village
Pick your district, then your block and gram panchayat. Each panchayat page lists the block office, tehsil, nearest Jan Seva Kendra, bank branches and post offices where you apply for this scheme and get it verified.
Bihar
Rajasthan
Uttar Pradesh
Source: myScheme.gov.in