Key Points
- The Skill Loan Scheme was launched in July 2015.
- It provides institutional credit for skill development courses.
- Eligible courses must meet NSQF standards and lead to a certificate, diploma, or degree.
The Skill Loan Scheme, launched in July 2015, provides institutional credit for skill development courses aligned with the National Skill Qualification Framework (NSQF) standards and results in a certificate, diploma, or degree. The scheme applies to all member banks of the Indian Banks' Association (IBA) and other financial institutions as advised by the RBI, offering general guidelines for implementing these loans.
Benefits of Skill Loan Scheme (SLS)
Check the following table carrying the important details of Skill Loan Scheme (SLS):
| Feature | Details |
| Courses | Aligned to NSQF |
| Quantum of Finance | Rs 5000 - Rs 1,50,000 |
| Duration of Course | No minimum duration |
| Rate of Interest | Base rate (MCLR) + an add on typically up to 1.5% |
| Moratorium | Duration of the course |
| Repayment Period | Between 3 to 7 years basis the amount of loan |
| Loan Repayment | Upto ₹ 50,000 - Upto 3 years |
| Between ₹ 50,000 to ₹ 1 lakh - Upto 5 years | |
| Above ₹ 1 lakh - Upto 7 years | |
| Coverage | Course Fees (directly to the training institute) along with expenses towards completion of the course (assessment, examination, study material, etc.) |
| Collateral | N/A |
| Credit Guarantee Fund | Credit Guarantee Fund for Skill Development (CGFSSD) for all skill loans sanctioned on or after 15 July 2015, administered by NCGTC. |
| Guarantee Fee | Nominal fee, shall not exceed 0.5% of the amount outstanding. |
| Guarantee Cover | Maximum of 75% of the outstanding loan amount (including interest, if any). |
Skill Loan Scheme (SLS) Eligibility Criteria
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 a recognized university, training partners affiliated to National Skill Development Corporation (NSDC) / Sector Skill Councils, State Skill Mission, State Skill Corporation
How to Apply for Skill Loan Scheme
Candidates will need to follow the mentioned steps to apply online for Skill Loan Scheme (SLS):
- Interested candidates need to register on the Vidya Kaushal portal
- Documents required– including, but not limited to proof of identity, proof of address, proof of income (of self or guardian, if available)
- Post successful registration, candidate can select their preferred sector/ role/ centre
- Visit the centre of your choice for counselling
- Raise loan request through the centre, if required
- Evaluate and accept/ reject loan offers based on preference
- Disbursement of the loan directly to partner/ centre post-confirmation
Documents Required to Apply for Skill Loan Scheme
Applicants must keep the following documents readily available while applying online for Skill Loan Scheme (SLS):
- ID Proof
- Proof of address
- Proof of income
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