NEWS – Government Launches Revamped Skill Loan Scheme

HIGHLIGHTS

Key Updates

• Loan Limit: Increased from Rs 1.5 lakh to Rs 7.5 lakh.
• Purpose: To facilitate loans for skill development courses.

Background

• Previous Scheme: Launched in 2015, recorded low uptake.
• Issues: Limited loan amount and high course fees.

New Features

• Expanded Coverage: Access to more skill courses, including non-NSQF aligned courses.
• New Lending Institutions:
  • Non-banking financial companies (NBFCs)
  • NBFC-MFIs (Micro-finance institutions)
  • Small finance banks

Financial Details

• Previous Loans: Rs 115.75 crore extended to 10,077 borrowers until March 31.
• Increased Utilisation: Revised scheme expected to broaden lending framework.

Implementation

• Platform: Skill India Digital Hub will include non-NSQF courses.
• Goal: Improve access and support for skill development in India.