Skill Loan Scheme Revamped: Up to Rs 7.5 Lakh for Skill Development

New Delhi, Jul 25 (PTI) The government on Thursday launched the revamped Model Skill Loan Scheme to facilitate loans up to Rs 7.5 lakh with a guarantee from a government-promoted fund.

The Budget unveiled earlier this week by Finance Minister Nirmala Sitharaman announced that the Model Skill Loan Scheme will be revised. The measure is expected to help 25,000 students every year.

Speaking to reporters on the sidelines of the launch, Minister of Skill Development and Entrepreneurship Jayant Chaudhary said the skill loan limit earlier was only up to Rs 1.5 lakh, which has now been increased to Rs 7.5 lakh.

Moreover, earlier only scheduled banks were included, whereas now Regional Rural Banks, NBFCs, etc, have also been linked to the scheme, the minister said.

"Major milestone for MSDE with the launch of the Model Skill Loan Scheme. This empowers youth with financial support for advanced skilling, includes a range of eligible courses, collateral-free loans upto Rs 7.5 lakh; NBFCs, NBFC-MFIs, and Small Finance Banks also eligible lenders," he said in a post on X.