Revised Model Skill Loan Scheme launched to Empower Youth with Financial Support for Advanced Skilling

Shri Jayant Chaudhary highlighted that the revised scheme represents a significant reform aimed at overcoming financial constraints that often limit access to high-quality skill training.

Shri Jayant Chaudhary, Minister of State (Independent Charge) for the Ministry of Skill Development & Entrepreneurship (MSDE) and Minister of State for the Ministry of Education, has launched the revised Model Skill Loan Scheme, designed to facilitate access to high-end skill courses and address financial barriers for students. The initiative aims to prepare India's youth for a future-ready workforce.

Key Features of the Revised Scheme:

Increased Loan Limits: The maximum loan amount eligible for credit guarantee cover has been raised to INR 7.50 lakhs, up from the previous limit of INR 1.50 lakhs.

Expanded Lender Eligibility: Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs), and Small Finance Banks are now eligible to provide these loans, backed by a 75% guarantee against default.

Focus on Advanced Skills: The scheme supports access to advanced-level courses in fields like healthcare, IT, AI, cloud computing, digital marketing, hospitality, animation, gaming, graphic design, and drone technology.

Statements from Key Figures:

Shri Jayant Chaudhary highlighted that the revised scheme represents a significant reform aimed at overcoming financial constraints that often limit access to high-quality skill training. He emphasized the importance of adapting to technological and societal changes and aligning educational and job market strategies with future demands.

Shri Atul Kumar Tiwari, Secretary of MSDE, noted that the evolving skill economy requires new-age learning integration. He stressed the importance of this scheme in offering diverse skilling opportunities and improving livelihood prospects for youth, especially from urban and semi-urban areas.

The Model Skill Loan Scheme is a revision of the Credit Guarantee Fund Scheme for Skill Development (CCFSSD) launched in July 2015. It addresses the need for a vibrant skill loan market to support low-income youths in accessing affordable finance for specialized training amidst rapid technological advancements.

Event Highlights:

The launch ceremony, held at Kaushal Bhawan, featured addresses from several notable figures including:

Shri Atul Kumar Tiwari, Secretary, MSDE

Shri T.G. Sitharam, AICTE

Shri Nilambuj Sharan, Senior Economic Advisor, MSDE

Shri Ved Mani Tiwari, CEO, NSDC and MD, NSDC International

Shri Durgesh Pandey, Chairman, NCGTC

Shri Gopal Bhagat, Deputy CEO, Indian Banks Association

Shri Varun Chopra, CEO, Eduvanz Financial Services

The new scheme marks a crucial step towards democratizing access to skill development opportunities and preparing India's workforce for the demands of a rapidly changing job market.