If you’re unable to advance your career or pursue skill training due to financial constraints, the Ministry of Social Justice and Empowerment’s Vocational Education and Training Loan Scheme can be a boon! This scheme is specifically designed for economically disadvantaged youth who need financial assistance for education or skill training.
Under the NSKFDC (National Safai Karamcharis Finance and Development Corporation), you can get a loan of up to ₹4 lakh at an interest rate of just 4% per annum. With this powerful scheme, you can easily cover all expenses like course fees, books, equipment, and accommodation.
Which Expenses Will Be Covered
This excellent loan scheme helps you overcome any obstacles to skill development. You can use the loan amount for these crucial expenses. First, the loan fully covers the admission or tuition fees for the course. Additionally, examination, library, and lab fees are also included. If the institute requires a cash deposit, this loan can also cover that amount.
The cost of purchasing all essential books, equipment, and tools required for training is also covered under this scheme. Boarding and lodging expenses during the training period and insurance coverage for the loan are also included. Any other necessary expenses certified by the training institute can also be covered under this loan.
Loan Limit and Interest Rate
If your course duration is up to 2 years, you can receive a maximum loan of ₹4 lakh. You should be aware that if the course costs exceed this amount, you will have to bear the additional amount. This loan has an exceptionally low interest rate. NSKFDC provides the loan at 1% per annum, and beneficiaries are charged interest at only 4% per annum. As an additional incentive, women beneficiaries receive a significant interest rate discount of 0.5%. You can easily repay this loan over a long tenure of up to 7 years, reducing your EMI burden.
Who can apply for an NSKFDC loan
Applicants must belong to the NSKFDC target group. They must be enrolled in a government ministry, department, or institution supported by the NSDC (National Skill Development Corporation) or a State Skill Mission. The course duration must be at least 6 months and a maximum of 2 years. Candidates must be at least 18 years old and at most 50 years old.
List of Required Documents
To apply, you will need documents such as your Aadhaar card, driving license, bank details, caste certificate, income certificate, and domicile certificate.
Simple Application Process
First, you must visit the official website. Click on the “How to Apply” section and open the loan application form. Fill in the required information, such as personal details, course details, income proof, etc. Once you’ve completed filling in all the information, click the “Save” button to save the form and submit it.
