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The Model Skill Loan Scheme is a program launched by the Ministry of Skill Development & Entrepreneurship (MSDE) that aims to provide access to skilling courses without financial constraints. The scheme is intended to help people access high-end courses that may have high fees. In Budget 2024-25, under the Model Skill Loan Scheme, the maximum ticket size of individual loans eligible for credit guarantee cover has been increased to INR 7.50 lakhs from the earlier limit of INR 1.50 lakhs. Furthermore, NBFCs, Micro Finance Institutions, and Small Finance Banks will also be eligible to extend loans which will be backed by guarantee against default up to 75% of the loan disbursed.
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