Executive Summary:
The Ministry of Skill Development and Entrepreneurship addressed a Lok Sabha question regarding the Skill Loan Scheme in Uttar Pradesh. The Skill Loan Scheme, facilitated by the Indian Banks Association (IBA), supports vocational education and training via loans. The Credit Guarantee Fund Scheme for Skill Development (CGFSSD) provides guarantee coverage, and was revised on July 9, 2024, to enhance its scope, including increasing the loan limit to Rs. 7.5 lakh and expanding eligible courses and lending institutions.
Key Points / Main Content:
* **Skill Loan Scheme:**
* Circulated by the Indian Banks Association (IBA) on July 10, 2015, to member banks for vocational education and training loans.
* **Credit Guarantee Fund Scheme for Skill Development (CGFSSD):**
* Notified on November 10, 2015, to guarantee 75% of the defaulted amount to lending institutions.
* Revised on July 9, 2024, with key modifications:
* Increased maximum loan limit to Rs. 7.5 lakh.
* Included non-NSQF aligned courses delivered through Skill India Digital Hub (SIDH).
* Included NBFCs, NBFCMFIs, and Small Finance Banks as member lending institutions.
* **Data on Loans (Uttar Pradesh):**
* Annexure I provides year-wise and category-wise (General, OBC, SC, ST) details of the number of loans and amount sanctioned under CGFSSD since inception until July 31, 2025.
* Annexure II details year-wise and category-wise data on loan accounts turned NPA (Non-Performing Assets) and guarantee claims settled under CGFSSD since inception until July 31, 2025.
* Annexure III presents category-wise and district-wise data on the number of loans and amounts sanctioned under CGFSSD in Uttar Pradesh since the scheme's modification until July 31, 2025.
Impact Analysis:
* **Lending Institutions (Member Banks, NBFCs, NBFCMFIs, Small Finance Banks):**
* Impact: Increased potential loan volume and reduced risk due to enhanced guarantee coverage.
* Action Required: Implement the revised CGFSSD guidelines, including the increased loan limit and expanded course eligibility.
* **Skill Trainees/Candidates in Uttar Pradesh:**
* Impact: Greater access to vocational education and training loans, including high-end courses, with reduced financial constraints.
* Action Required: Apply for loans under the Skill Loan Scheme through eligible lending institutions, considering the increased loan limit and expanded course options.
Key Entities Referenced
Skill Loan Scheme: A scheme providing loan facilities for vocational education and training courses.
Uttar Pradesh: A state in India, the primary focus of the loan scheme mentioned in the document.
SHRI PUSHPENDRA SAROJ: The Member of Parliament who raised the question about the Skill Loan Scheme.
SHRI JAYANT CHAUDHARY: The Minister of State in the Ministry of Skill Development and Entrepreneurship who answered the question.
Indian Banks Association (IBA): An association of banks that circulated the Skill Loan Scheme to its member banks.
Ministry of Skill Development and Entrepreneurship (MSDE): The government ministry responsible for skill development initiatives and the Credit Guarantee Fund Scheme for Skill Development.
Credit Guarantee Fund Scheme for Skill Development (CGFSSD): A scheme providing guarantee cover to the Skill Loan Scheme.
Skill India Digital Hub (SIDH): A digital platform that provides access to non-NSQF aligned courses.
GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
LOK SABHA
UNSTARRED QUESTION NO. 3476
ANSWERED ON 11.08.2025
SKILL LOAN SCHEME FOR UTTAR PRADESH
3476. SHRI PUSHPENDRA SAROJ
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased
to state:
(a) the details of the number of individuals in Uttar Pradesh availed loan facility under the
Skill Loan Scheme SC, ST, OBC, General categories and year-wise;
(b) the number of loans sanctioned and amount released for Uttar Pradesh, categories
and year-wise;
(c) the details regarding the number of defaults occurred in loan repayment in Uttar
Pradesh, along with the details of the amount of credit guarantee released for defaulting
loans, categories, year-wise; and
(d) whether the revised Model loan scheme is operational and if so, the details regarding
the number of individuals availed the scheme, district, year and category-wise ?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) to (d): The Skill Loan Scheme was circulated on 10th July, 2015 by Indian Banks’
Association (IBA) to its member banks for its adoption while extending loan for vocational
education and training courses. Ministry of Skill Development and Entrepreneurship (MSDE)
notified Credit Guarantee Fund Scheme for Skill Development (CGFSSD) on 10th
November, 2015 to provide guarantee cover to Skill Loan Scheme to the extent of 75% of
the amount in default to the member lending institutions.
CGFSSD was revised and notified on 9th July 2024 to enhance the coverage of the scheme
and to provide access to skill trainees/candidates to wide range of high-end courses without
any financial constraints. The major changes in modified CGFSSD inter-alia include the
increase in maximum loan limit to Rs. 7.5 lakh, inclusion of non-NSQF aligned courses
delivered through Skill India Digital Hub (SIDH), and inclusion of NBFCs/ NBFC-MFIs and
Small Finance Banks as the member lending institutions.
Year-wise & Category-wise details of number of loan covered and amount sanctioned
under CGFSSD in Uttar Pradesh since inception till 31.07.2025 are given at Annexure-I.
Year-wise & Category-wise details of loan account turned NPA and guarantee claims
settled under CGFSSD in Uttar Pradesh since inception till 31.07.2025 are given at
Annexure-II.
Category-wise and District-wise details of number of loan and amount sanctioned under
CGFSSD in Uttar Pradesh since modification till 31.07.2025 are given at Annexure-III.ANNEXURES REFERRED TO IN REPLY TO PART (a) to (d) OF LOK SABHA UNSTARRED
QUESTION NO. 3476 ANSWERED ON 11.08.2025 REGARDING ‘SKILL LOAN SCHEME FOR
UTTAR PRADESH’
Annexure-I
Year-wise & Category-wise number of loan and amount sanctioned under CGFSSD
in Uttar Pradesh since inception till 31.07.2025
No of Loan A/c Amount of Loans Guaranteed (Rs
Guaranteed Lakh)
Financial Year General OBC SC ST General OBC SC ST
2016-17 23 36 10 1 15.91 18.25 5.63 0.50
2017-18 27 2 3 0 27.70 1.88 3.82 0.00
2018-19 28 8 3 0 34.80 10.79 3.72 0.00
2019-20 36 12 3 0 46.70 15.97 3.75 0.00
2020-21 15 3 2 0 19.73 4.00 2.15 0.00
2021-22 4 2 0 0 4.76 2.80 0.00 0.00
2022-23 15 9 3 0 17.80 8.97 2.27 0.00
2023-24 6 2 1 0 7.27 1.55 1.25 0.00
2024-25 13 6 1 0 10.34 5.72 0.45 0.00
2025-26(up to 4 1 0 0 1.83 4.00 0.00 0.00
31.07.2025)
Overall 171 81 26 1 186.84 73.93 23.04 0.50Annexure-II
Year-wise & Category-wise loan account turned NPA and guarantee claims settled
under CGFSSD in Uttar Pradesh since inception till 31.07.2025
Financial Year No. of Accounts Turned NPA Amount of Claims Settled (Rs Lakh)
General OBC SC ST General OBC SC ST
2016-17 9 23 7 1 0.00 0.00 0.00 0.00
2017-18 3 1 1 0 0.00 0.00 1.23 0.00
2018-19 7 3 2 0 3.57 2.39 2.55 0.00
2019-20 16 4 3 0 11.51 3.66 2.86 0.00
2020-21 6 0 0 0 2.44 0.00 0.00 0.00
2022-23 1 2 0 0 0.54 0.54 0.00 0.00
2023-24 0 1 0 0 0.00 0.00 0.00 0.00
Overall 42 34 13 1 18.06 6.59 6.65 0.00Annexure-III
Category-wise and District-wise number of loan and amount sanctioned under
CGFSSD in Uttar Pradesh since modification till 31.07.2025
No of Loan A/c Amount of Loans Guaranteed (Rs
Districts of Guaranteed Thousand)
Uttar Pradesh General OBC SC ST General OBC SC ST
Baghpat 1 0 0 0 150.0 0.0 0.0 0.0
Ballia 1 1 0 0 60.0 139.7 0.0 0.0
Budaun 1 0 0 0 36.0 0.0 0.0 0.0
Deoria 1 0 0 0 40.0 0.0 0.0 0.0
Fatehpur 1 0 0 0 37.0 0.0 0.0 0.0
Ghaziabad 3 0 0 0 245.9 0.0 0.0 0.0
Ghazipur 1 0 0 0 50.0 0.0 0.0 0.0
Jhansi 0 0 1 0 0.0 0.0 45.0 0.0
Kanpur Nagar 1 0 0 0 36.0 0.0 0.0 0.0
Kasganj (Kanshiram 0 1 0 0 0.0 32.0 0.0 0.0
Nagar)
Lucknow 1 1 0 0 36.0 120.0 0.0 0.0
Meerut 2 0 0 0 120.0 0.0 0.0 0.0
Moradabad 1 1 0 0 60.0 150.0 0.0 0.0
Pratapgarh 0 1 0 0 0.0 400.0 0.0 0.0
Sonbhadra 0 1 0 0 0.0 60.0 0.0 0.0
Uttar Pradesh 14 6 1 0 870.9 901.7 45.0 0.0
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