{"id":25301,"date":"2024-07-24T08:07:23","date_gmt":"2024-07-24T02:37:23","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=25301"},"modified":"2025-10-08T11:05:32","modified_gmt":"2025-10-08T05:35:32","slug":"skill-loan-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/skill-loan-scheme\/","title":{"rendered":"What is Skill Loan Scheme?"},"content":{"rendered":"<h2>About Skill Loan Scheme:<\/h2>\n<ul>\n<li>It was introduced in July, 2015, to <strong>offer institutional credit <\/strong>to individuals <strong>pursuing skill development courses<\/strong> aligned with National Occupations Standards and Qualification Packs.\u00a0<\/li>\n<li>These courses are <strong>conducted by training institutes following the National Skill Qualification Framework (NSQF)<\/strong> and lead to certifications, diplomas, or degrees.<\/li>\n<li>The Scheme <strong>applies to all member banks of the Indian Banks\u2019 Association<\/strong> (IBA) <strong>and<\/strong> other banks and <strong>financial institutions as advised by the <\/strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/reserve-bank-of-india\/\" target=\"_blank\">Reserve Bank of India (RBI)<\/a><strong>.\u00a0<\/strong><\/li>\n<li><strong>Features<\/strong>:\n<ul>\n<li><strong>Eligibility: Any Indian National<\/strong> who has <strong>secured admission in<\/strong> a course run by <strong>Industrial Training Institutes<\/strong> (ITIs), <strong>Polytechnics,or<\/strong> in a <strong>school<\/strong> recognised by Central or State Education Boards or in a <strong>college<\/strong> affiliated with a recognised university, <strong>training partners affiliated to<\/strong> National Skill Development Corporation (<strong>NSDC<\/strong>) <strong>Sector Skill Councils<\/strong>, State Skill Mission, or State Skill Corporation can avail loan for the purpose.<\/li>\n<li>No specific restriction with regard to age.<\/li>\n<li>Courses: Aligned with NSQF.<\/li>\n<li><strong>Duration of Course<\/strong>: <strong>No minimum duration<\/strong>.<\/li>\n<li><strong>Quantum of Finance:Rs. 5,000<\/strong>-1,50,000. Now, increased <strong>to Rs 7.5 lakh.<\/strong><\/li>\n<li><strong>Moratorium<\/strong>: <strong>Duration of the course<\/strong>.<\/li>\n<li><strong>Repayment Period:<\/strong>\n<ul>\n<li><strong>Loans up to Rs. 50,000<\/strong>: <strong>Up to 3 years.<\/strong><\/li>\n<li>Loans between Rs. 50,000 to Rs. 1 lakh: Up to 5 years.<\/li>\n<li><strong>Loans above Rs. 1 lakh: Up to 7 years.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Coverage<\/strong>: <strong>Course fees<\/strong> and exp<strong>enses for assessment, examination, study material<\/strong>, etc.<\/li>\n<li><strong>Interest Rate:<\/strong> The interest rate to be charged by the bank should <strong>not be more than1.5% p.a. over<\/strong> and above <strong>repo-linked-lending-rate (RLLR)<\/strong> or any other external benchmark interest rate conforming to RBI guidelines.<\/li>\n<li><strong>Collateral<\/strong>: The scheme <strong>does not allow for collateral<\/strong> to be charged from the beneficiary.<\/li>\n<li>Ministry of Skill Development and Entrepreneurship (MSDE), through a November 2015 notification, brought into force the <strong>Credit Guarantee Fund for Skill Development (CGFSSD) for all skill loans<\/strong> sanctioned on or after 15 July 2015, to be <strong>administered by the National Credit Guarantee Trust Company (NCGTC).<\/strong><\/li>\n<li><strong>Banks<\/strong> can <strong>apply to the NCGTC for a credit guarantee against defaults,<\/strong> and the NCGTC will provide this guarantee at a nominal fee which shall not exceed 0.5% of the amount outstanding.<\/li>\n<li>The <strong>guarantee cover<\/strong> will be for <strong>a maximum of 75% of the outstanding loan<\/strong> amount (including interest, if any).<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1: What is the National Skill Development Corporation (NSDC)?<\/h3>\n<p>NSDC was set up as a one of its kind, Public Private Partnership Company with the primary mandate of catalyzing the skills landscape in India. Established on July 31, 2008, as a not-for-profit public limited company under section 25 of the Companies Act, 1956 (now corresponding to section 8 of the Companies Act, 2013), NSDC operate as a unique Public Private Partnership (PPP) model under the Ministry of Skill Development &amp; Entrepreneurship (MSDE). Its 49% of the share capital is held by the government and 51% by the private sector.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/budget-2024-loan-up-to-rs-10-lakh-for-students-says-sitharaman-know-more-124072300411_1.html\" target=\"_blank\" rel=\"nofollow noopener\">Budget 2024: Loan up to Rs 10 lakh for students&#8217; higher education, says FM<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Skill Loan Scheme was introduced in July, 2015, to offer institutional credit to individuals pursuing skill development courses aligned with National Occupations Standards and Qualification Packs. <\/p>\n","protected":false},"author":5,"featured_media":25302,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-25301","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/25301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=25301"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/25301\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/25302"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=25301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=25301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=25301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}