Q. What is the main purpose of the 'Skill Loan Scheme', recently mentioned in Union Budget 2024-25?
Answer:
To provide institutional credit for skill development courses
Notes: The Finance Minister announced a revision to the model Skill Loan Scheme, now facilitating loans up to Rs 7.5 lakh, backed by a government-promoted fund guarantee. Introduced in July 2015, the scheme offers institutional credit for skill development courses aligned with National Occupations Standards and Qualification Packs, conducted by NSQF-compliant training institutes. It applies to all Indian Banks’ Association (IBA) member banks and RBI-advised financial institutions. Any Indian National admitted to ITIs, Polytechnics, recognized schools, affiliated colleges, or NSDC training partners is eligible, with no age restrictions. The courses lead to certifications, diplomas, or degrees.