Skill Loan Scheme - Loans Up to ₹1.5 Lakh, Zero Margin & Easy Terms

1. Duration of Course - No minimum duration
2. Quantum of Finance:
3. Minimum loan amount: Rs.5000
4. Maximum loan amount: Rs.1.5 lakh
5. Interest Rate: Base rate/MCLR of the bank + add-on of up to 1.5%
6. Processing fees: Nil
7. Margin: Nil
8. Moratorium:
9. Courses with less than 1-year duration: 6 months from course completion
10. Courses above 1 year duration: 12 months from course completion
    Repayment Period - Between 3 to 7 years based on the quantum of loan as follows:
11. Up to Rs.50,000: 3 years
12. Between Rs.50,000 to Rs.1 lakh: 5 years
13. Above Rs.1 lakh: 7 years
14. Collateral: None

How to Apply for the Skill Loan Scheme

You can apply for the Skill Loan Scheme through any of the banks that are offering the scheme.

List of Expenses Covered

Under the Skill Loan Scheme, the fees for the course will be paid directly to the educational institute.
The expenses that are covered include the following:

1. Course or tuition fees
2. Caution deposit
3. Cost of the study materials such as books, instruments, and equipment
4. Examination fees
5. Assessment fees
6. Library fees
7. Laboratory fees

Eligibility Criteria for Skill Loan Scheme

Individuals who are eligible for the Skill Loan Scheme should have secured admission to a course that is conducted by any one of the following institutions:

1. Industrial Training Institutes (ITIs)
2. Polytechnics
3. Schools recognized by the State or Central Board of Education
4. Colleges affiliated to a recognized university
5. Training partners affiliated to the Sector Skill Councils, National Skill Development Corporation (NSDC), State Skill Mission, or State Skill Corporation

Documents Required to Apply for the Skill Loan Scheme

The following documents are required to apply for the Skill Loan Scheme:

1. Proof of admission to course such as admission or offer letter and ID card if available
2. Copies of letter for scholarship or free-ship
3. Schedule of expenses for course
4. Mark sheet of the 10th, 12th, graduation (if applicable), and results of the entrance exam
5. Gap certificate, if applicable (self-declaration from the student if there has been a gap in studies)
6. Asset-Liability Statement of the co-applicant or guarantor for loans above Rs.7.5 lakh
7. Passport size photographs of the student/parent/co-borrower/guarantor

Proof of income

1. Bank account statements of the last six months of the parent, guarantor, or guardian
2. Permanent Account Number (PAN) of the student, parent, guarantor, or co-borrower
3. Aadhaar (if eligible for government interest subsidy schemes)

Proof of address and identity

1. One self-attested copies of the documents given below:
2. Passport
3. Driving license
4. Proof of possession of Aadhaar Number
5. Voter's Identity Card
6. Job card issued by NREGA
7. Letter issued by the National Population Register with details of address

Features and Benefits of Skill Loan Scheme

The Credit Guarantee Fund for Skill Development (CGFSSD), which will be run by the National Credit Guarantee Trust Company, will provide coverage for any skill loans that were authorized on or after July 15, 2015. (NCGTC).

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