The Centre has introduced a revised Model Skill Loan Scheme, designed to provide financial support for skill development courses to the nation’s youth.
- It was launched on 25 July 2024 by the Minister of State for Skill Development and Entrepreneurship.
- The scheme aims to remove financial barriers to advanced skill education.
- The updated scheme offers collateral-free loans of up to Rs. 7.5 lakh and expands eligibility to include Non-Banking Financial Companies (NBFCs), NBFC-Micro Finance Institutions (NBFC-MFIs), and small finance banks.
- This initiative is part of a broader effort to develop a future-ready workforce by facilitating access to high-cost, advanced skill courses essential for meeting emerging industrial demands.
- The revised Model Skill Loan Scheme builds upon the Credit Guarantee Fund Scheme for Skill Development (CCFSSD), launched in 2015, and aims to ensure a steady flow of affordable finance for low-income youth to pursue specialized skill courses.
