Jayant Chaudhary lauds Finance Minister Sitharaman for increasing Skill loans to Rs 7.50 lakhs to minimise financial risk

New Delhi [India], July 26 : Minister of State (Independent Charge), Ministry of Skill Development, Jayant Chaudhary lauded Finance Minister Nirmala Sitharaman for focusing on employment-linked schemes, setting a new precedent for prioritising job creation and skilling in the Union Budget 2024, adding that among all the budgets presented post-independence, a finance minister has spoken 'skill development' 14 times.
He also heaped praise on Sitharaman for the loan amount limit, which was increased to 7.5 lakh rupees from 1.5 lakh rupees earlier in the 'Model Skill Loan Scheme', aimed at empowering the country's future-ready workforce. Under the scheme, education and upskilling opportunities will be provided to 25 thousand youth across the country.
He added that several Non-Banking Financial Companies (NBFC), scheduled banks, and rural banks have also been added to the scheme, which will provide hassle-free loans to students.
"Today, we have inaugurated the scheme which was announced by the union finance minister in her budgetary speech. Skill loans which were earlier up to Rs 1.50 lakhs and limited to fewer banks only, have been increased to Rs 7.50 lakhs and RRBs, and NBFCs also have been connected to this scheme. We have tried to minimise the financial risk by putting a cap so that interest rates can't go beyond market-aligned rates," Chaudhary said.
New Model Skill Loan Scheme is tailored to support advanced-level skill courses, which often come with higher fees, creating a significant financial barrier for many deserving students. This initiative aims to bridge that gap, ensuring that aspiring candidates receive the necessary financial support to pursue their skill training.
"The thought that I had when I joined NDA and what I am doing to fulfill that dream, the PM has shown faith in me, in ministry and in the youths. If you will listen to all the budget presented post-independence, for the first time a Finance Minister has spoken 'skill development' 14 times," he added.
The Union budget has announced many schemes to create employment opportunities, skill enhancement, and social welfare schemes towards making a Viksit Bharat by 2024. Focusing on critical sectors such as employment, skilling, MSMEs and support for the middle class, Finance Minister Nirmala Sitharaman has unveiled five key schemes and initiatives aimed at creating substantial employment and skilling opportunities.
This ambitious package is set to benefit 4.1 crore youth over the next five years, backed by a central outlay of Rs 2 lakh crore.
Furthermore, the Budget has allocated Rs 1.48 lakh crore specifically for education, employment, and skilling, underscoring the government's commitment to these vital areas.
The initiatives include employment-linked incentives, besides enhancing skilling, women's workforce participation, and support for MSMEs in creating jobs. The initiatives will also include strengthening capital infrastructure.
Three of these five schemes will be implemented through the Employee Provident Fund Organisation (EPFO) by incentivizing both employers and employees. These Employment-Linked Incentive Schemes are designed to recognise first-time employees and provide comprehensive support to both employees and employers.
The first scheme will target first-time employees in the formal sector who are registered with EPFO. This scheme offers a one-month wage (up to Rs. 15,000) in three instalments.
The second scheme will focus on job creation in the manufacturing sector, this scheme will incentivize both employees and employers for additional first-time employees. The scheme will offer benefits based on their EPFO contributions during the first four years of employment. Employees with salaries up to Rs. 1 lakh will be eligible under this scheme.
Third scheme under PMs package will provide support to employers by reimbursing Rs. 3,000 per month for two years towards their EPFO contribution for each additional employee with a salary of up to Rs. 1 lakh per month.
Fourth scheme will be a new centrally sponsored scheme for skilling 20 lakh youths over five years in collaboration with state governments and industry, along with upgrading 1,000 Industrial Training Institutes to align with industry skill needs.
Last and fifth scheme under PMs package will offer internship opportunities to one crore youth in 500 top companies over the next five years. The scheme will provide an internship allowance of Rs. 5,000 per month and a one-time assistance of Rs. 6,000, with real-life business and professional exposure.