Education alone is not the key to progress in today's fast-paced world. While it is undoubtedly a must, it cannot suffice vividly. People with a distinctive skillset can stand out and benefit much more. A profound skillset gives them an advantage over others and makes them strong contenders.
While there are many different options available to acquire the desired skills, the Government of our country is also helping people to do the same. It is possible with the help of the Skill loan scheme, launched by the Indian government in 2015. Under this, the Ministry of Skill Development and Entrepreneurship provides credit to people who wish to sign up for skill development courses from training institutes aligned with the National Skill Qualification Framework.
There are specific criteria for individuals who wish to opt for a skill loan. Firstly, the interested person must have secured admission in any of the courses that come under the Industrial Training Institutes, a school facilitated by the Central or state board of education, Polytechnics, Colleges affiliated with a recognized university, or in recognition with training partners accounted with the National Skill Development Corporation, State Skill Mission, Sector Skill Councils or State Skill Corporation.
The National Skill Development Corporation has developed the Vidya Kaushal platform for applying the same. It facilitates a wide range of options with an easy online application process. This platform aims to provide seamless skill loan funding for the citizens. Moreover, it also provides an online alternative to track the status of one’s loan application and an online grievance management system.
The process for application starts when individuals register on the official website of the Vidya Kaushal platform. They would also require certain documents, including identity proof, address proof, income proof, and more. Then, post the registration process; candidates can visit a counseling center of their choice. Finally, they can raise the loan request and conclude.You may like to read: Agriculture Equipment Loan: Eligibility, Process and Find Bank Branches
Vidya Lakshmi is also another platform that helps students seeking financial loans. It is maintained by the NSDL e-Governance Infrastructure Limited. In addition, there are several banks providing Skill loans in India. The list includes:
Allahabad Bank
An Indian nationalized bank, the Allahbad bank, was founded in 1865 and headquarters in Kolkata. In 2020, the bank was merged with Indian Bank. The skill loan provided by this bank is applicable for students who have secured admission for technical courses under affiliated institutions. The loan amount starts from Rs. 5000 and can go up to Rs. 1.5 lakh. The same also depends on the duration required for the specified course. For courses that go along for up to 6 months, the maximum available loan amount is Rs. 50,000. For courses that exceed six months, the maximum available loan amount can exceed Rs. 1.5 lakh.
For a loan amount up to Rs. 50,000, the repayment period offered is up to 3 years after completing the course. Applicants get a repayment time of up to 5 years for other loans. The bank directly disburses this loan to the college or the institution. Find Allahabad Loan Offices: Allahabad Bank Branch Locator
Bank Of Maharashtra
This nationalized bank is registered under the Ministry of Finance, Government of India. Additionally, it also has the largest network of branches in Maharashtra. The bank offers skill loans for students eligible under the criteria mentioned above. However, there are no specified rules regarding the minimum duration of the course.
The quantum of finance specifies the minimum loan amount as Rs. 5000 and the maximum amount of Rs. 1,50,000. Additionally, the bank does not ask for any third-party guarantee or collateral. Therefore, the loan is essentially covered under the CGFSSL scheme.
Find Bank of Maharashtra Loan Offices: Bank Of Maharashtra Branch Locator
Corporation Bank
The Corporation Bank is a wholly-owned subsidiary under the Union Bank of India and has a pan-India presence. The Corporation Bank and the Andhra Bank merged into the Union Bank of India in 2020.
The Corporation Bank provides a Corp Skill loan scheme designed to assist individuals who wish to enhance their skill set and contribute as a skilled labor force of the country. It is meant for individuals who opt for technical courses.
The minimum and maximum amount for the loan stand the same as other banks. The floating interest rate varies between 10.40% and 10.75% p.a. The bank also offers an EMI option to repay this loan.
Find Corporation Bank Loan Offices: Corporation Bank Branch Locator
Dena Bank
From 2019 onwards, Dena Bank has been amalgamated with the Bank of Baroda. BOB is a nationalized bank and a financial services company. It comes under the ownership of the Ministry Of Finance and is the fourth largest nationalized bank in the country.
The skill loan scheme is for students who opt for technical courses offered by the institutes mentioned above. The repayment period varies with the amount of the loan. The benefits include zero processing charges, zero documentation charges, and no security. There are no minimum age criteria for the loan. However, if the applicant is a minor, their parents need to layout the loan document.
The bank also offers a special incentive for girls, with an interest concession of 0.50%. The interest during the study period is left as an option for the borrower. This loan covers the expenses for the applicant’s Course and tuition fees, Caution deposit, Cost of books and instruments, Examination fees, and any other reasonable expenses.
Find Dena Bank Loan Offices: Dena Bank Branch Locator
