Skill Loan Scheme

Current Context : The finance minister recently announced a revision to the model skill loan scheme.

• The revised scheme will now facilitate loans up to Rs 7.5 lakh backed by a guarantee from a government-promoted fund.
• This initiative is expected to benefit 25,000 students annually.

ABOUT SKILL LOAN SCHEME

• Launched in July, 2015.
• It provides financial assistance to students pursuing technical courses offered by training institutes, polytechnics, and similar institutions.
• These courses are conducted by training institutes following the National Skill Qualification Framework (NSQF) and lead to certifications, diplomas, or degrees.
• The Scheme avaliable through banks that are members of the Indian Banks’ Association (IBA) and financial organisations approved by the Reserve Bank of India (RBI).
• Ministry : Ministry of Skill Development and Entrepreneurship