Question: Can I get benefits under Skill Loan Scheme? What are the requirements?

Answer: Here are the eligibility criteria for Skill Loan Scheme:

Ministry Of Skill Development And EntrepreneurshipSkill Loan SchemeIndustrial Training Institutes (ITIs)PolytechnicsSkill
DevelopmentStudentDetailsBenefitsEligibilityApplication ProcessDocuments RequiredFrequently Asked QuestionsThe 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).ï»¿This scheme is applicable to all member banks of the Indian Banksâ€™ 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.ï»¿ï»¿Salient features of the guidelines to banks for operationalizing the scheme:Eligibility
â€“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 â€“
Aligned to NSQFQuantum of Finance â€“ Rs 5000-1,50,000Duration of Course â€“ No minimum durationRate of Interest â€“ Base rate
(MCLR) + an add on typically up to 1.5%Moratorium â€“ Duration of the courseRepayment Period â€“ Between 3 to 7 years basis the
amount of loanLoans upto â‚¹ 50,000 - Upto 3 yearsLoans between â‚¹ 50,000 to â‚¹ 1 lakh - Upto 5 yearsLoans above â‚¹ 1 lakh - Upto 7
yearsCoverage â€“ 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 Bankâ€™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).OkWas this helpful?ShareNews and UpdatesNo new news and updates
availableÂ©2024Powered byDigital India Corporation(DIC)Ministry of Electronics & IT (MeitY)Government of IndiaÂ®Quick
LinksAbout UsContact UsScreen ReaderAccessibility StatementFrequently Asked QuestionsDisclaimerTerms & ConditionsUseful
LinksGet in touch4th Floor, NeGD, Electronics Niketan, 6 CGO Complex, Lodhi Road, New Delhi - 110003, Indiasupport-
myscheme[at]digitalindia[dot]gov[dot]in(011) 24303714Last Updated On : 28/03/2024 | v-2.1.1