Skill Loan Scheme
Ministry: Ministry Of Skill Development And Entrepreneurship
The scheme aims to support youth by providing access to institutional credit for skill training courses. Through this scheme, collateral-free loans and credit guarantee support are provided to eligible borrowers for undertaking skill training programmes.
About This Scheme
Benefits
₹1.5 L
1. The maximum loan limit under the Scheme has been enhanced from ₹1,50,000 to ₹7,50,000.
₹5.0K
1. The minimum and maximum loan limit under the Scheme are ₹5,000 and ₹7,50,000 respectively.
1. The loan is provided without any collateral security and/or third-party guarantee.
1. Non-Banking Financial Companies (NBFCs) and Non-Banking Finance Company Micro Finance Institutions (NBFC-MFIs) have been included as eligible lending institutions in addition to Scheduled Banks under the Scheme.
1. The interest rate charged by Member Lending Institutions should not be more than:
1.5% per annum over External Benchmark Lending Rate (EBLR) for Scheduled Banks.
21% per annum for NBFC/NBFC-MFIs.
1. The Scheme provides guarantee cover to the extent of 70% to 75% of the amount in default.
1. The claim payout to an eligible Lending Institution during the initial years is capped at 20% of the total disbursement made by the institution under the Scheme during a year.
1. No processing fee is charged by Banks.
> Repayment Tenure:
₹50.0K
Amount of LoanTenureLoan up to ₹50,000Up to 3 yearsLoan between ₹50,000 to ₹1,00,000Up to 5 yearsLoan above ₹1,00,000Up to 7 years
Eligibility
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Required Documents
- ✦Proof of Identity.
- ✦Proof of Address.
- ✦Proof of Income (of self or guardian, if available)
✦ Required ◦ Optional
How to Apply
Proof of Identity. Proof of Address. Proof of Income (of self or guardian, if available).
Apply here ↗Quick Info
- Level
- Central Government
- Max benefit
- ₹1.5 L
- Launched
- 15 Jul 2015