Credit Guarantee Fund for Skill Development (CGFSD)

iAbout This Scheme

CGFSD provides credit guarantee cover for skill loans under the Pradhan Mantri Kaushal Vikas Yojana and Vocational Education Funding schemes. It enables skill-trained youth to obtain collateral-free loans from banks for fees and living expenses during skill training. SIDBI manages the guarantee fund.

🎁Key Benefits

• Credit guarantee for skill development loans without collateral
• Loans from ₹5,000 to ₹1.5 lakh for skill training fees
• Covers NSQF Level 5 and above courses
• Available through scheduled banks and NBFCs
• Reduces lender risk enabling credit to first-generation learners
• Repayment after course completion and employment

✅Eligibility Criteria

• 1
  Individuals enrolled in NSQF-aligned skill training programmes
• 2
  Indian resident citizens
• 3
  No prior loan default

📝How to Apply

❓Frequently Asked Questions