WELFARE SCHEME : ECONOMY
NEWS: Minister launches revamped
Model Skill Loan Scheme
WHAT’S IN
THE NEWS?
Original Scheme: Credit Guarantee Fund
Scheme for Skill Development
- Launch: November 2015
- Purpose: Create a credit guarantee fund for courses aligned to the National
Skills Qualification Framework.
Challenges:
- Low fund utilization: ₹115.75 crore loans to only 10,077 borrowers as of March 31.
- Low loan limit: Up to ₹1.5 lakh, insufficient due to rising course costs and fees.
- Limited lending institutions: Only Indian Banking Association (IBA) member
banks could lend, leading to low uptake.
New Scheme Changes:
- Expanded Lending Network: Includes Non-Banking Financial Companies
(NBFCs) and small finance banks, in addition to IBA member banks.
- Increased Loan Limits: Higher loan amounts to cover more skill courses.
Source: https://epaper.thehindu.com/ccidist-ws/th/th_delhi/issues/92412/OPS/GFID3UN7J.1+GF2D417MQ.1.html