Who can take a loan under the Skill Loan Scheme?
A person who has taken admission to a skill course aligned to the National Skills Qualification Framework can apply to a participating bank for a loan under the Skill Loan Scheme. The 2015 model capped that loan at ₹1.5 lakh. The revised model of 2024 raised the ceiling to ₹7.5 lakh. The loan is not a Registrar of Companies filing.
Who can apply?
The borrower is the student, not the company. The course is one that leads to a certificate, diploma, or degree under the National Skills Qualification Framework, including a course at an industrial training institute, a polytechnic, or a training partner of a sector skill council or the National Skill Development Corporation. The bank asks for the admission and the identity of the borrower. This page does not set a national list of extra papers.
How much can the loan be?
| Model | Ceiling |
|---|---|
| 2015 model scheme | ₹1.5 lakh |
| Revised model, 2024 | ₹7.5 lakh |
The sanction, the rate, and the repayment period are the bank’s. The model scheme is framed so that the borrower is not asked for collateral. A bank’s own refusal is still a bank decision. This page does not quote an interest rate or a processing fee.
What is the loan not?
It is not incorporation, not a goods-and-services-tax registration, and not recognition under Startup India. Forming a company is on the private-company page. The loan does not itself create a business entity.
Frequently asked questions
Four questions cover the old ceiling, the Registrar, the rate, and which course qualifies.
Is the ceiling still ₹1.5 lakh?
No. That was the ceiling in the 2015 model scheme. The revised model of 2024 raised the ceiling to ₹7.5 lakh.
Does the company file this with the Registrar?
No. The borrower applies to a bank that participates in the scheme. It is not an MCA form.
Is the interest rate fixed on this page?
No. The bank sanctions the rate. This page does not quote a rate, a processing fee, or a repayment term.
Does any course qualify?
No. The course has to be aligned to the National Skills Qualification Framework. Admission to an unrelated course does not bring the loan.
Sources
The Skill Loan Scheme is a model scheme of the Ministry of Skill Development and Entrepreneurship, first issued in 2015 and revised in 2024. Banks that participate sanction the loan.