Scholarship
Skill Loan Scheme(SL)
Overview
About SL
The Skill Loan Scheme is a central government scheme that helps young people meet the cost of vocational and skill-training courses through institutional credit. It is run by the Ministry of Skill Development and Entrepreneurship, with the loans extended by participating banks. The purpose is straightforward: a student's ability to pay upfront should not decide whether they can enrol in a recognised skill course.
Loans under the scheme are given without collateral or a third-party guarantee, and are backed by government credit-guarantee support that shares the lender's risk. That structure is what lets a bank lend to a trainee who has no security to offer. The money can go towards course and examination fees, study material and the other costs of completing the training.
The scheme is aimed at individuals enrolled in eligible skill-development courses run by recognised bodies, including Industrial Training Institutes, polytechnics, training partners of the National Skill Development Corporation and Sector Skill Councils, where the course is aligned to the National Skills Qualification Framework. Whether you qualify, and how much you can borrow, depends on the scheme's eligibility rules and the lending bank's assessment.
Sources: myScheme (Government of India) – Skill Loan Scheme · State Bank of India – Skill Loan Scheme · Wikipedia – Ministry of Skill Development and Entrepreneurship
Who runs it
Provider
Ministry Of Skill Development And Entrepreneurship
Central Government
Central Sector Scheme
At a glance
Key details
| Level | Central |
| Scheme type | Central Sector Scheme |
| Category | Skills & Employment, Banking,Financial Services and Insurance |
| Beneficiaries | Individual |
| Benefit type | Cash |
| Application mode | Online |
Calendar
Important dates
Across all open application cycles.
| Cycle | Stage | Date |
|---|---|---|
| Current | Applications open | 2015-07-15 |
Who can apply
Eligibility criteria
| The applicant should be an Indian national. | |
| The applicant should have secured admission to a skill training course. | |
| The applicant should meet the minimum qualification criteria required to undergo the skill training course. | |
| The applicant should be enrolled in National Skill Qualification Framework (NSQF) aligned courses and/or Non-NSQF-aligned courses offered by training entities onboarded on the Ministry of Skill Development and Entrepreneurship’s Skill India Digital Hub (SIDH) platform. | |
| The applicant should be admitted to a course run by | Industrial Training Institutes (ITIs). |
| The applicant should be admitted to a course run by | Schools recognised by Central or State Education Boards. |
| The applicant should be admitted to a course run by | Colleges affiliated with recognised universities. |
| The applicant should be admitted to a course run by | Training partners affiliated with the National Skill Development Corporation (NSDC). |
| The applicant should be admitted to a course run by | Sector Skill Councils. |
| The applicant should be admitted to a course run by | State Skill Mission. |
| The applicant should be admitted to a course run by | State Skill Corporation. |
What you get
Award & benefits
- The maximum loan limit under the Scheme has been enhanced from ₹1,50,000 to ₹7,50,000.
- The minimum and maximum loan limit under the Scheme are ₹5,000 and ₹7,50,000 respectively.
- The loan is provided without any collateral security and/or third-party guarantee.
- Non-Banking Financial Companies (NBFCs) and Non-Banking Finance Company Micro Finance Institutions (NBFC-MFIs) have been included as eligible lending institutions in addition to Scheduled Banks under the Scheme.
- The interest rate charged by Member Lending Institutions should not be more than: 5% per annum over External Benchmark Lending Rate (EBLR) for Scheduled Banks.
- 21% per annum for NBFC/NBFC-MFIs.
- The Scheme provides guarantee cover to the extent of 70% to 75% of the amount in default.
- The claim payout to an eligible Lending Institution during the initial years is capped at 20% of the total disbursement made by the institution under the Scheme during a year.
- No processing fee is charged by Banks.
- Repayment Tenure: Amount of LoanTenureLoan up to ₹50,000Up to 3 yearsLoan between ₹50,000 to ₹1,00,000Up to 5 yearsLoan above ₹1,00,000Up to 7 years
What to prepare
Documents required
Step by step
How to apply
- 1Apply online
https://www.vidyakaushal.com/Vidyakaushal/registerStudent
Source
Official links
Questions
SL – FAQ
Disclaimer
Scheme details are compiled from myScheme, the Government of India’s official scheme-discovery platform, and are reproduced without alteration. Amounts, deadlines and eligibility change between cycles — always confirm on the official links above before applying. Expertie does not process applications or charge fees.