The Model Skill Loan Scheme was introduced by Jayant Chaudhary, the Minister of State for Skill Development and Entrepreneurship. The program seeks to equip the labor force of the nation for the future. The scheme will give 25,000 young people nationwide access to education and upskilling possibilities. In this article you get every necessary information regarding this scheme such as objective, eligibility, benefits, required documents and applying procedure.
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Model Skill Loan Scheme
The Ministry of Skill Development and Entrepreneurship is currently offering the redesigned Model Skill Loan Scheme (MSDE). In order to guarantee that students may access excellent education without financial limitations, this new program seeks to remove financial barriers for those looking to enroll in advanced skill courses.
Through the loan, more students will be able to enroll in advanced-level skill courses, removing financial obstacles to the acquisition of innovative, in-demand industrial skills. The scheme helps young people in India create a workforce prepared for the future by making loans more accessible. In addition to expanding the lending network to include small financing institutions and adding new courses as part of the updated scheme, the credit guarantee fund scheme was expanded from Rs 1.5 lakh to Rs 7.5 lakh.
Overview Of Model Skill Loan Scheme
| Name of the scheme | Model Skill Loan Scheme |
| Launched by | Jayant Chaudhary, the Minister of State for Skill Development and Entrepreneurship |
| Beneficiaries | Citizens |
| Objective | To provide financial support for skill development courses to the nation’s youth |
| Official Website | .msde.gov.in |
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Objective Of Model Skill Loan Scheme
The main objective of this scheme is to guarantee a consistent supply of reasonably priced funding so that young people from low-income families may enroll in specialized training programs.
Benefits Of Model Skill Loan Scheme
- Any skill loans sanctioned on or after 15 July 2015 will be covered by the Credit Guarantee Fund for Skill Development (CGFSSD) which will be administered by the National Credit Guarantee Trust Company. (NCGTC).
- These programs, which lead to certificates, diplomas, or degrees, are offered by training facilities in accordance with the National Skill Qualification Framework (NSQF).
- As recommended by the Reserve Bank of India (RBI), the Scheme is applicable to all banks that are members of the Indian Bank’s Association (IBA) as well as other banks and financial organizations.
Eligibility Criteria
- Admission to classes offered by approved organizations, including polytechnics, ITIs, schools approved by State or Central Boards, colleges connected to approved universities and training partners associated with State Skill Corporations, Sector Skill Councils, NSDC and State Skill Missions.
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Required Documents
- Passport-sized pictures of the co-borrower, parent, student and guarantee
- Aadhaar card
- PAN card
- Voter ID
- Proof of enrollment in the course such as an ID card if available and an admission or offer letter
- copies of the letter offering a free ride or scholarship
- Timetable of course expenditures
- Mark sheet for the 10th and 12th grades, diploma (if appropriate) and entrance exam results
- Certificate of gap, if any (student self-declaration if there has been a study gap)
- Liability vs. Asset Co-applicant’s or guarantor’s statement for loans over Rs. 7.5 lakh
Application Process Of Model Skill Loan Scheme
- Talk with a bank or other financial institution that is involved.
- Submit in the necessary documents, such as identification and admissions documents.
- Should the student be a minor, a co-borrower (parent or guardian) is required.
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FAQ’s
What amount of funds does the government set apart for skill development, employment and education?
During the Union Budget 2024, Finance Minister Nirmala Sitharaman declared that the government will set aside Rs. 1.48 lakh crore for employment creation, education and skill development.
What is a skill loan scheme?
Students enrolled in technical courses offered by training centers, polytechnics, etc. are eligible for the Skill Loan Scheme. The sum of the talent loan is between Rs. 5,000 and Rs. 1,50,000. Repayment terms vary based on loan amount and might last up to 7 years.
Can I receive a loan for education to take an online course?
Yes, Bank of Baroda offers student loans for online courses.
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