Skill Loan Scheme

From Prelims Sureshots » Schemes & Welfare Initiatives

This topic of “Skill Loan Scheme” is important from the perspective of the UPSC IAS Examination, which falls under General Studies Portion.

Introduction:

Skill Loan Scheme launched in July 2015
Provides institutional credit for skill development courses aligned with NSQF leading to certificate/diploma/degree by training institutes.

Ministry/Agency:

Ministry of Skill Development and Entrepreneurship

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Objectives:

To provide credit for skill development courses aligned with NSQF
To facilitate skill development of individuals.

Benefits:

Courses aligned with NSQF
Quantum of finance up to Rs. 1.5 lakhs
No minimum duration for courses
Base rate + 1.5% interest
Moratorium period for the duration of the course
Repayment period of 3-7 years
Loan coverage for course fees and expenses
No collateral required
Credit Guarantee Fund for Skill Development for loans sanctioned on or after 15th July 2015

Eligibility:

Any individual who has secured admission in a course run by ITIs, Polytechnics, schools/colleges recognized by education boards/universities, training partners affiliated to NSDC/Sector Skill Councils, State Skill Mission, State Skill Corporation.

Implementation Strategy:

Applicable to member banks of Indian Banks’ Association and other banks and financial institutions advised by RBI
Guidelines provided to banks for operationalizing the skilling loan scheme.