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Source- This post on the Revamped Model Skill Loan Scheme has been created based on the article “Minister launches revamped Model Skill Loan Scheme” published in “The Hindu” on 26 July 2024.
Why in the news?
The revamped Model Skill Loan scheme was launched recently with Finance Minister Nirmala Sitharaman announcing the revision in her budget speech.
About Revamped Model Skill Loan Scheme
1. The government has introduced a revamped ‘model skill loan scheme’ for skill development courses.
2. The Model skill loan scheme was launched in 2015. The previous scheme saw low uptake due to the low maximum loan limit and increasing course fees. Data showed that loans amounting to Rs 115.75 crore were extended to 10,077 borrowers until March 31 this year.
3. The revised model skill loan scheme aims to provide better financial support for skill development courses, addressing previous limitations and expanding access to a wider range of courses and institutions.
New Features:
i) The loan scheme now includes non-banking financial companies (NBFCs), NBFC-MFIs (micro-finance institutions), and small finance banks as eligible lending institutions, in addition to private, public, and foreign banks.
ii) The revised scheme will cover more skill courses, including non-NSQF (National Skill Qualification Framework) courses that are onboarded on the Skill India Digital Hub platform.
iii) Ministry of Skill Development and Entrepreneurship emphasized the need for adapting to future technologies and job market changes.
iv)The government is strategically planning for the country’s future up to 2047, aiming to have a significant impact on the job market and people’s lives through this revised scheme.
v) The maximum loan limit has been increased to Rs 7.5 lakh from the previous Rs 1.5 lakh. The revised scheme is expected to help 25,000 students annually.
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