Question
What is the new maximum loan limit for the enhanced
‘Model Skill Loan Scheme’ launched by the Ministry of State for Skill Development and Entrepreneurship in July 2024?Solution
The Ministry of State for Skill Development and Entrepreneurship, under the leadership of Union Minister Jayant Chaudhary, announced an increase in the maximum loan limit of the ‘Model Skill Loan Scheme’ to Rs 7.5 lakh from the previous cap of Rs 1.5 lakh. This revision was unveiled in the Union Budget for the fiscal year 2024-2025 and is designed to support approximately 25,000 students annually. The scheme aims to bridge the financial gap for students pursuing skill development courses, enhancing their career prospects. This initiative builds on the earlier established Credit Guarantee Fund Scheme for Skill Development (CGFSSD) launched in 2015, addressing its challenges and expanding its reach and effectiveness.
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