About the Scheme
Launched in 2015, the Model Skill Loan Scheme aims to provide financial assistance to individuals pursuing skill development courses, thereby promoting skill acquisition and enhancing employability across the country.
Target Beneficiaries: 1 crore Indian youth (18-35 years) pursuing skill development courses through subsidized education loans up to ₹1.5 lakh with interest rate benefits and flexible repayment options
Implementing Agency: Public Sector Banks (PSBs) and other financial institutions, under the guidance of the Ministry of Skill Development and Entrepreneurship (MSDE).
Key Features
- Loans available for various skill development courses offered by institutions recognized by the government.
- No collateral required for loans up to a certain limit (e.g., ₹4 lakhs).
- Repayment period starts after a moratorium period (e.g., 6-12 months after course completion/employment).
- Covers tuition fees, examination fees, study material, and other reasonable expenses.
- Implemented through Public Sector Banks (PSBs) and other financial institutions.
- Interest rates linked to the base rate of the lending bank.
Eligibility Criteria
- Must be an Indian citizen.
- Must have secured admission in a skill development course offered by an institution recognized by the government/sector skill council.
- Age criteria as per the specific course and bank norms (generally 18-35 years).
- Minimum educational qualification as prescribed for the chosen skill course.