Model Skill Loan Scheme

In August 2024, the government has launched the revised Model Skill Loan Scheme to enhance access to skill development courses.

Key Features of the Scheme

  • Increased Loan Limit: Maximum loan amount raised from Rs. 1.5 lakh to Rs. 7.5 lakh.
  • Expanded Lending Institutions: Now includes NBFCs, Micro Finance Institutions (MFIs), and Small Finance Banks (SFBs) along with traditional banks.
  • Credit Guarantee: 75% credit guarantee against defaults.

Background

  • Previous Scheme: Credit Guarantee Fund Scheme for Skill Development (CCFSSD), 2015, provided institutional credit for skill courses aligned with the National Skill Qualification Framework (NSQF).

Importance of Skill Development

  • Employment Growth: Youth (15-29 years) unemployment ....
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