Government Launches Revamped Model Skill Loan Scheme for Students

The government has revamped the Model Skill Loan Scheme, increasing the loan amount to Rs 7.5 lakh with government-backed guarantees. The new scheme aims to aid 25,000 students annually and now includes a wider range of lenders like Regional Rural Banks and NBFCs.

The government on Thursday introduced the revamped Model Skill Loan Scheme, now offering loans up to Rs 7.5 lakh backed by a government-promoted fund. Finance Minister Nirmala Sitharaman revealed the revised scheme in this week's Budget announcement, aiming to assist 25,000 students annually.

During the launch event, Minister of Skill Development and Entrepreneurship Jayant Chaudhary noted that the previous skill loan limit was only Rs 1.5 lakh. The revised scheme also expands the range of participating lenders to include Regional Rural Banks and NBFCs.

'This is a significant milestone for the Ministry of Skill Development and Entrepreneurship. The new Model Skill Loan Scheme provides financial support for advanced skilling with collateral-free loans up to Rs 7.5 lakh and includes a variety of eligible courses,' Chaudhary said in a social media post.

(With inputs from agencies.)