Skill loans in India: financing skill training, certification, and apprenticeship

The Credit Guarantee Fund Scheme for Skill Development backs collateral-free loans of up to seven and a half lakh rupees for eligible skill-training programmes. Several state governments run parallel skill-loan schemes that cover ITI fees, NSDC-certified courses, and apprenticeship-linked training.

YouthPower tracks 4 schemes in this category, of which 0 are central government programmes and 4 are state government programmes.

What to look for when applying

Course must be NSDC- or NCVT-certified, or ITI-affiliated. Most lenders ask for a co-applicant for under-21 borrowers. Repayment usually starts six to twelve months after course completion.

Named examples

• Chief Minister's Self Employment Scheme (State · loan)
  The "Chief Minister's Self Employment Scheme" was launched by the Department of Personnel, and Reforms, Training, Public Grievances, Government of Sikkim. The scheme aims to provide loan to unemployed youth who belong below the poverty line.
• Financial Assistance to Traditional Artisans (Panchavrutthi Scheme) (State · loan)
  The "Financial Assistance to Traditional Artisans (Panchavrutthi Scheme)" provides financial assistance to traditional artisans of the Vishwakarma community in Karnataka. The scheme aims to help these artisans purchase modern tools & upgrade their technological skills to enhance their trade.
• Parivahan Scheme (GBCDC) (State · loan)
  The scheme aims to provide financial assistance for vehicle purchases in the transport sector for SEBC unemployed individuals. A loan is provided under the scheme.
• Passenger Vehicle/Loading Vehicle Loan Scheme (DAADC) (State · loan)
  The "Passenger Vehicle/Loading Vehicle Loan Scheme" introduced by the Social Justice and Empowerment Department provides financial support to unemployed individuals from Antyodaya Caste for purchasing passenger or freight vehicles.

States with the highest number of dedicated state-government schemes in this category are Gujarat, Sikkim, Karnataka.

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