The Indian government has unveiled a revamped Model Skill Loan Scheme, designed to alleviate financial barriers for students pursuing high-end skill courses. Launched by Shri Jayant Chaudhary, Minister of State (Independent Charge) for the Ministry of Skill Development & Entrepreneurship (MSDE) and the Ministry of Education, the scheme now offers loans up to INR 7.5 lakhs, significantly up from the previous cap of INR 1.5 lakhs.
In a move to broaden access, the revised scheme includes Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs), and Small Finance Banks as eligible lenders, with the government providing a 75% credit guarantee against defaults. This initiative aims to support advanced training in fields such as healthcare, IT, AI-data science, and digital marketing.
“The Model Skill Loan Scheme represents a significant reform,” said Shri Chaudhary during the launch at Kaushal Bhawan. “It provides collateral-free loans to empower youth with skills that match the rapidly evolving job market and aligns with our strategic vision for 2047.”From a regional perspective, the Guwahati market stands to benefit substantially from this scheme. With its burgeoning tech and service industries, Guwahati’s youth will have enhanced access to high-quality training, promoting local economic growth and supporting the city’s aspirations as a regional educational hub.
