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Skill Loan Scheme

ParticularsSkill Loan
ObjectiveSkill Loan Scheme (herein after called as Skilling Loan) aims at providing a loan facility to individuals who intend to take up skill development courses as per the Skilling Loan Eligibility Criteria.
Eligibility Norms
  • The applicant should be an Indian national
  • As required by the enrolling institutions/organizations as per NSQF
  • Any individual who has secured admission in a course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by central or State education Boards or in a college affiliated to recognized university, training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a certificate / diploma / degree issued by such organization as per National Skill Qualification Framework (NSQF)
Courses EligibleCourses run by above mentioned Training Institutes (in 4.a) aligned to National Skill Qualification Framework (NSQF) shall be covered by the Skill Loan. There is no minimum course duration.
Quantum of FinanceLoans will be in the range of Rs.5,000/- to Rs.1,50,000/-. The estimated per month fees, based on sector & NSQF level, will be available with the NSDC
MarginThe banks can charge nominal margin money as down-payment from the student, to keep the student serious about the course. However, the down-payment and the amount paid as Interest during the course (Clause 11) together should not exceed 10% of the total course amount.
SecurityNo collateral for such skilling loan will be taken. Bank have option to apply to the National Credit Guarantee Trust Company Ltd (NCGTC) for credit guarantee against defaults
Rate of Interest:

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Repayment
  • Loans up to Rs. 50,000- Up to 3 years
  • Loans between Rs.50,000 to Rs.1 lakh - Up to 5 years
  • Loans above Rs.1 lakh- Up to 7 years