Yuva Kaushal

Yuva Kaushal Scheme by PSBs

S. No.	Parameter	Details
1	Objective	Facilitate easy and affordable access to financial assistance for individuals seeking to enhance their skills through vocational training and skill development courses.
2	Eligibility Criteria	Indian National aged between 16 to 29 years. Individual who has secured admission / who meets the eligibility criteria with minimum qualifications to undergo skill training for the National Skill Qualification Framework (NSQF) aligned courses and/or the Non-NSQF aligned courses by the training entities onboarded on the MSDE's Skill India Digital Hub (SIDH) platform, and who has executed the loan documents with the Banks to avail the loan. If the student is a minor, while the parent(s) would execute documents, the Banks will obtain a letter of acceptance/ ratification from the student upon attaining majority. Parents/guardians will be the co-borrowers.
3	Quantum of Finance	Loans will be in the range of Rs. 5,000/- to Rs. 7,50,000/- without any collateral security and/or third-party guarantee. The estimated per month fees, based on sector & NSQF level, will be available with the NSDC. Skill loan could be availed by beneficiaries of other grant/ reward-based Government schemes for skill training to cover the cost of such skill training not covered under such grant/ reward.
4	Rate of Interest	Interest rate to be charged by the Banks should not be more than 1.5% p.a. over the External Benchmark Lending Rate (EBLR) and not to exceed 9.00%. 1% interest concession may be provided by the bank, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.
5	Margin	The Banks may charge a nominal margin money as down-payment from the student. However, the down-payment and the amount paid as EMI during the course together should not exceed 10% of the total course amount.
6	Processing Charges	Nil
7	Security	No collateral / Third Party Guarantee to be taken.
8	Guarantee	Guarantee cover as per Credit Guarantee Fund Scheme for Skill Development (CGFSSD) provided by NCGTC.
9	Moratorium	In order to instill repayment behavior and get some commitments from the students, the bank may have installment during the course period itself. The total amount paid by the student as down-payment and EMI during the course together should not exceed 10% of the total course value. It is advised that the banks consider moratorium for specific courses or certain sections of the students. Courses of duration up to 1 year: Up to 6 months from the completion of the course. Courses of duration above 1 year: 12 months from the completion of the course. The Banks will have flexibility to choose the structure of repayment - flat Equated Monthly Instalments (EMI), tube payments or moratorium period as deemed fit for various sectors and student categories.
10	Repayment	The loan will have a tenure as follows: Loans up to ₹50,000: Up to 3 years Loans between ₹50,000 to ₹1 lakh: Up to 5 years Loans above ₹1 lakh: Up to 7 years
11	Creditworthiness	Normally, the borrower may not have a credit history and as such he is assumed to be creditworthy. However, in case of an adverse credit history of student, banks at their discretion may frame suitable criteria based on their risk appetite.
12	Training Institutes	Industrial Training Institutes (ITIs), Polytechnics or school recognized by Central or State education Boards or college affiliated to recognized university, training partners affiliated to National Skill Development Corporation (NSDC) / Sector Skill Councils, State Skill Mission, State Skill Corporation. Preferably leading to a certificate / diploma / degree issued by such organization as per National Skill Qualification Framework (NSQF) and/or the Non-NSQF aligned courses in skill development provided by the training entities onboarded on the MSDE's Skill India Digital Hub (SIDH) platform. The Government of India / State Governments may, from time to time, notify institutes/organizations for the purpose.
13	Training Courses	Courses run by the above-mentioned Training Institutes aligned to National Skill Qualification Framework (NSQF) and/or the Non-NSQF aligned courses in skill development provided by the training entities onboarded on the MSDE's Skill India Digital Hub (SIDH) platform shall be covered by the Skill Loan. There is no minimum course duration.
14	Know Your Customer (KYC) Norms	Aadhar number will also be considered as a valid proof for KYC norms in addition to other identity and address proof as determined by respective banks.
15	Expenses Considered for Loan	Tuition / course fee: Banks shall pay such tuition / course fee directly to the Training Institute. Any other reasonable expenditure found necessary for completion of the course including but not limited to: Assessment fee Examination fee Library charges Laboratory fee Caution deposit Books Equipment and instruments Boarding and lodging may also be considered wherever found necessary, based on merit and the cost of living in the particular area.
16	Insurance	Personal accident insurance cover under PMSBY to be offered at customer's cost.
17	Prepayment	The borrower can repay the loan any time after commencement of repayment without having to pay any prepayment charges. In case a student is not able to complete the course because of accident / death / disability, the Banks can seek a pro-rata reimbursement of the unfinished portion of the course amount from the training institute.