Question
The maximum loan amount eligible for credit guarantee
cover has been increased from INR 1.5 lakhs to INR 7.5 lakhs under the revamped Model Skill Loan Scheme. Under the revamped Model Skill Loan Scheme, what percentage of the loan amount is backed by a guarantee against default?ÂSolution
The revamped Model Skill Loan Scheme provides a guarantee against default up to 75% of the loan amount. • Loan Limit Increase: The maximum loan amount eligible for credit guarantee has been raised from INR 1.5 lakhs to INR 7.5 lakhs. • Scheme Objective: To support skill development by increasing credit guarantee coverage for skill loans. • Expanded Network: The lending network now includes small finance banks, with additional skill development courses covered. • Overseeing Ministry: Ministry of Skills Development and Entrepreneurship.Â
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