Skill Loan Scheme
State: Central
Ministry: Ministry Of Skill Development And Entrepreneurship
Department: null
Category: Skills & Employment, Banking,Financial Services and Insurance
Beneficiary Type: Individual

The scheme aims to support youth by providing access to institutional credit for skill training courses. Through this scheme, collateral-free loans and credit guarantee support are provided to eligible borrowers for undertaking skill training programmes.

Benefits:
1. The maximum loan limit under the Scheme has been enhanced from ₹1,50,000 to ₹7,50,000.
1. The minimum and maximum loan limit under the Scheme are ₹5,000 and ₹7,50,000 respectively.
1. The loan is provided without any collateral security and/or third-party guarantee.
1. Non-Banking Financial Companies (NBFCs) and Non-Banking Finance Company Micro Finance Institutions (NBFC-MFIs) have been included as eligible lending institutions in addition to Scheduled Banks under the Scheme.
1. The interest rate charged by Member Lending Institutions should not be more than:

  - 1.5% per annum over External Benchmark Lending Rate (EBLR) for Scheduled Banks.
  - 21% per annum for NBFC/NBFC-MFIs.

1. The Scheme provides guarantee cover to the extent of 70% to 75% of the amount in default.
1. The claim payout to an eligible Lending Institution during the initial years is capped at 20% of the total disbursement made by the institution under the Scheme during a year.
1. No processing fee is charged by Banks.

> **Repayment Tenure:**

**Amount of Loan****Tenure**Loan up to ₹50,000Up to 3 yearsLoan between ₹50,000 to ₹1,00,000Up to 5 yearsLoan above ₹1,00,000Up to 7 years<br>

Eligibility:
1. The applicant should be an Indian national.
1. The applicant should have secured admission to a skill training course.
1. The applicant should meet the minimum qualification criteria required to undergo the skill training course.
1. The applicant should be enrolled in National Skill Qualification Framework (NSQF) aligned courses and/or Non-NSQF-aligned courses offered by training entities onboarded on the Ministry of Skill Development and Entrepreneurship’s Skill India Digital Hub (SIDH) platform.
1. The applicant should be admitted to a course run by:

- Industrial Training Institutes (ITIs).
- Polytechnics.
- Schools recognised by Central or State Education Boards.
- Colleges affiliated with recognised universities.
- Training partners affiliated with the National Skill Development Corporation (NSDC).
- Sector Skill Councils.
- State Skill Mission.
- State Skill Corporation.

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Application Process:
[Online]
Step 1: The interested candidate needs to register on the Vidya Kaushal Portal.
Step 2: The candidate needs to submit the required documents, including but not limited to:
Proof of Identity.
Proof of Address.
Proof of Income (of self or guardian, if available).
Step 3: After successful registration, the candidate can select their preferred sector, role, and centre.
Step 4: The candidate needs to visit the selected centre for counselling.
Step 5: If required, the candidate can raise a loan request through the centre.
Step 6: The candidate can evaluate the available loan offers and accept or reject them based on their preference.
Step 7: After confirmation, the loan amount will be disbursed directly to the partner/centre.

Documents Required:
Proof of Identity.
Proof of Address.
Proof of Income (of self or guardian, if available)