Sarkari Yojana
Skill Loan Scheme
About Skill Loan Scheme
Run by the Ministry of Skill Development and Entrepreneurship (MSDE), Government of India, the Skill Loan Scheme helps youth access institutional credit for pursuing skill-training programmes across the country. It offers eligible borrowers collateral-free loans — without any third-party guarantee — backed by credit guarantee support, covering skill courses including higher-end, fee-based courses in new-age skills. Scheduled Banks, Non-Banking Financial Companies (NBFCs) and Non-Banking Finance Company Micro Finance Institutions (NBFC-MFIs) implement the scheme as lending institutions. Objectives:
- To support youth seeking skill training opportunities in the country.
- To ensure access to institutional credit for pursuing skill courses.
Scheme Overview
Central Government
Ministry Of Skill Development And Entrepreneurship
Individual
15 Jul 2015
Scheme Details
Eligibility Requirements
To qualify for Skill Loan Scheme, applicants must satisfy the following conditions:
Applicants must hold Indian nationality
Applicants must hold Indian nationality.
Applicants must have already obtained admission into a…
Applicants must have already obtained admission into a recognised skill training course.
Applicants must satisfy the minimum eligibility criteria set…
Applicants must satisfy the minimum eligibility criteria set for undertaking that particular skill training course.
Applicants must be pursuing courses aligned with the…
Applicants must be pursuing courses aligned with the National Skill Qualification Framework (NSQF), or non-NSQF-aligned courses, delivered by training providers registered on the Skill India Digital Hub (SIDH) platform of the Ministry of Skill Development and Entrepreneurship.
Applicants must be admitted to a course conducted…
Applicants must be admitted to a course conducted by one of the following:
Industrial Training Institutes (ITIs).
Polytechnic institutions.
Schools affiliated with Central or State education boards.
Colleges affiliated with a recognised university.
Training partners empanelled with the National Skill Development Corporation (NSDC).
Sector Skill Councils.
A State Skill Mission.
A State Skill Corporation.
Benefits Provided
Skill Loan Scheme provides the following benefits to eligible applicants:
The Scheme's maximum loan limit has been raised…
The Scheme's maximum loan limit has been raised from ₹1,50,000 to ₹7,50,000.
Loans under the Scheme range between a minimum…
Loans under the Scheme range between a minimum of ₹5,000 and a maximum of ₹7,50,000.
Loans are extended without requiring collateral security or…
Loans are extended without requiring collateral security or a third-party guarantee.
Non-Banking Financial Companies (NBFCs) and Non-Banking Finance Company…
Non-Banking Financial Companies (NBFCs) and Non-Banking Finance Company Micro Finance Institutions (NBFC-MFIs) have been added as eligible lending institutions alongside Scheduled Banks.
Member Lending Institutions cannot charge an interest rate…
Member Lending Institutions cannot charge an interest rate higher than:
1.5% per annum over the External Benchmark Lending Rate (EBLR), for Scheduled Banks.
21% per annum, for NBFC/NBFC-MFIs.
The Scheme guarantees cover of 70% to 75%…
The Scheme guarantees cover of 70% to 75% of the defaulted amount.
In the initial years, claim payouts to an…
In the initial years, claim payouts to an eligible Lending Institution are capped at 20% of its total disbursement under the Scheme for that year.
Banks do not levy any processing fee
Banks do not levy any processing fee. Repayment Tenure: Amount of LoanTenureLoan up to ₹50,000Up to 3 yearsLoan between ₹50,000 to ₹1,00,000Up to 5 yearsLoan above ₹1,00,000Up to 7 years
Documents Required
Applicants should keep the following documents ready before starting the application:
A valid identity proof document
A valid identity proof document.
A valid address proof document
A valid address proof document.
Income proof of the applicant or their guardian,…
Income proof of the applicant or their guardian, where available.
2015-07-15
How to Apply
Online Application
Applicants can apply for Skill Loan Scheme through the online application process outlined below.
Application Portal: Open Application Portal ↗
The candidate registers on the Vidya Kaushal Portal
The candidate registers on the Vidya Kaushal Portal.
The candidate submits the required documents, including but…
The candidate submits the required documents, including but not limited to:
Proof of Identity.
Proof of Address.
Proof of Income (of self or guardian, if available).
Once registered, the candidate chooses their preferred sector,…
Once registered, the candidate chooses their preferred sector, role, and centre.
The candidate visits the chosen centre for counselling
The candidate visits the chosen centre for counselling.
If needed, the candidate can request a loan…
If needed, the candidate can request a loan through that centre.
The candidate reviews the loan offers available and…
The candidate reviews the loan offers available and accepts or declines them as preferred.
On confirmation, the loan amount is disbursed directly…
On confirmation, the loan amount is disbursed directly to the partner/centre.
Objectives
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Official Application & Website
Verify the latest eligibility, dates and instructions before applying.