Press Information Bureau
Government Of India
Ministry of Skill Development and Entrepreneurship
(16-December, 2015 15:36 IST )

Skill Loan Scheme


The Minister of State (Independent Charge) for Skill Development and Entrepreneurship Shri Rajiv Pratap Rudy has said that Skill Loan Scheme was launched by the Hon’ble Prime Minister on 15th July, 2015 with a view to support youth who wish to go through skill training programmes in the Country. This Skill Loan Scheme has replaced earlier Indian Banks Association (IBA) Model Loan Scheme for Vocational Education and Training. The Indian Banks Association (IBA) has already circulated the scheme to the Chief Executives of All Member Banks for implementation of the Scheme. Any Indian National who has secured admission in a course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognised by Central or State education Boards or in a college affiliated to recognised university, training partners affiliated to National Skill Development Corporation (NSDC) Sector Skill Councils, State Skill Mission, State Skill Corporation can avail loan for the purpose. Amount of loan varies from Rs. 5,000 to Rs. 150, 000/- depending on the course having a repayment period of 3 to 7 years. Simple rate of interest @ 11% and 12% per annum is charged during the period of study.

In a written reply in the Lok Sabha today the Minister said, Government has set a target of 34 lakhs for Skill Loan for a period of 5 years and the target for 2015-16 is 2 lakhs. As per information provided by Department of Financial Services (DFS) in respect of 27 Banks, 6003 numbers of Skill Loan accounts have been opened till 30.09.2015 and the total amount sanctioned is Rs 38.663 crores. The Skill Loan Scheme does not discriminate against women.

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