Skill Loan Scheme - Credit Guarantee Fund Scheme for Skill Development (CGFSSD)
Ministry of Skill Development & Entrepreneurship, Government of India
1. Scheme Overview
The Credit Guarantee Fund Scheme for Skill Development (CGFSSD) provides credit guarantee to lending institutions against defaults in skill loans extended to eligible individuals pursuing skill development courses. The scheme is administered through the National Credit Guarantee Trustee Company (NCGTC).
2. Loan Limit
Minimum Loan: Rs.5,000
Maximum Loan: Rs.7,50,000
Loans are extended without any collateral security and/or third-party guarantee.
3. Interest Rate (as notified on 09.07.2026)
| Category of Lender |
Maximum Interest Rate |
| Public Sector Banks, Private Sector Banks, Foreign Banks |
External Benchmark Lending Rate (EBLR) + 1.5% p.a. |
4. Eligible Borrowers
Indian nationals who meet minimum qualification criteria.
Enrolled in:
NSQF-aligned courses offered by ITIs, Polytechnics, Schools recognized by Central/State Boards, Colleges affiliated to recognized Universities, Training Partners of NSDC/Sector Skill Councils, State Skill Missions, or State Skill Corporations.
Non-NSQF aligned courses onboarded on the Skill India Digital Hub (SIDH) portal of MSDE.
Minors are eligible with parents/guardians as co-borrowers.
5. Eligible Courses
No minimum course duration prescribed.
Courses run by recognized training institutes leading to certificate/diploma/degree as per NSQF.
Non-NSQF courses listed on the SIDH portal are also covered.
6. Guarantee Coverage
| Loan Slab (Rs in Lakh) |
Guarantee Coverage on Amount in Default |
| 0.05 - 4.0 |
75% |
| 4.0 - 7.5 |
70% |
7. Guarantee Fee
0.125% per calendar quarter (i.e., 0.50% per annum) on outstanding portfolio balance.
Payable by the Member Lending Institution (MLI) within 16 days from the end of each calendar quarter.
8. Repayment Tenure
| Loan Amount |
Repayment Tenure |
| Up to Rs.50,000 |
Up to 3 years |
| Rs.50,000 - Rs.1.0 lakh |
Up to 5 years |
| Above Rs.1.0 lakh |
Up to 7 years |
9. Moratorium Period
| Course Duration |
Moratorium after Course Completion |
| Up to 1 year |
Up to 6 months |
| Above 1 year |
Up to 12 months |
Borrowers can prepay without any prepayment charges.
10. Contact / Implementing Agency
| National Credit Guarantee Trustee Company (NCGTC)
(Set up by Government of India under the Companies Act, 1956 on March 28, 2014)
Website: www.ncgtc.in |
Skill Loan Scheme :
Downlod here