Shri Jayant Choudhary, Minister of State (Independent Charge) for the Ministry of Skill Development & Entrepreneurship (MSDE) and MoS for the Ministry of Education, launched the revised Model Skill Loan Scheme. This scheme aims to provide access to high-end skilling courses without financial constraints, empowering India’s youth to become a future-ready workforce.
The scheme addresses the financial barriers faced by many deserving students in accessing advanced-level skill courses, equipping them with in-demand industry skills. Recognizing the crucial role of NBFCs and Micro Finance Institutions in the skill loan market, the MSDE, with approval from the Ministry of Finance, has made significant modifications to the scheme guidelines. These institutions, along with Small Finance Banks, are now eligible to extend loans backed by a guarantee against default up to 75% of the loan disbursed. Additionally, the maximum loan amount eligible for credit guarantee cover has been increased from INR 1.50 lakhs to INR 7.50 lakhs.
During the launch ceremony at Kaushal Bhawan, Shri Jayant Choudhary highlighted the scheme as a major milestone for the Ministry of Skill Development and Entrepreneurship. He emphasized that the scheme offers collateral-free loans up to INR 7.5 lakhs, making advanced skilling financially accessible. As the world undergoes rapid technological and societal changes, India’s education systems and job market must adapt accordingly. The Model Skill Loan Scheme is a public-demanded reform and liberalisation aimed at achieving this vision by 2047.
Shri Atul Kumar Tiwari, Secretary of MSDE, noted that the ‘Skill Economy’ is increasingly market-led, with new-age learning integrating into the skill development ecosystem. He mentioned that urban and semi-urban youth recognize opportunities for skilling and livelihood improvement. This initiative allows aspiring candidates to choose from a variety of skill courses in sectors like healthcare, IT, AI-data science, cloud application, digital marketing, hospitality, animation, gaming, graphic designing, and drone technology. These courses, driven by evolving industry dynamics, offer substantial placement opportunities and potential for international mobility.
The absence of a vibrant skill loan market has left many aspiring candidates without the necessary financial support for their training. To address this, the MSDE initially launched the Credit Guarantee Fund Scheme for Skill Development (CCFSSD) in July 2015. The revised Model Skill Loan Scheme is an enhanced version that meets the demands of a highly skilled workforce in a rapidly changing technological landscape.
The event was attended by prominent figures including Shri Atul Kumar Tiwari, Secretary of MSDE; Shri T.G. Sitharam from AICTE; Senior Economic Advisor Shri Nilambuj Sharan; CEO and MD of NSDC International Shri Ved Mani Tiwari; Chairman of National Credit Guarantee Trustee Company (NCGTC) Shri Durgesh Pandey; Deputy CEO of Indian Banks Association Shri Gopal Bhagat; and CEO of Eduvanz Financial Services Shri Varun Chopra.
