Union Finance Minister Nirmala Sitharaman said on Tuesday, July 23, that the government would finance loans up to Rs 10 lakh for higher education at domestic institutions. She stated, presenting the budget for 2024–2025, that e-vouchers for this purpose will be immediately distributed to one lakh pupils annually, with a three percent interest subsidy applied to the loan amount.
A reform of the model skill loan plan, upgrading 1,000 Industrial Training Institutes (ITIs) in a hub-and-spoke architecture and matching course material to industry skill needs are some of the actions announced by the Finance Minister for the Skill Development sector.
“For helping our youth who have not been eligible for any benefit under govt schemes and policies, the government will provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to one lakh students every year with interest subvention of 3 per cent of the loan amount,” Sitharaman said.
The country’s workforce, education, and skill-building would get Rs 1.48 lakh crore from the Union Budget for 2024–2025. “1,000 ITIs will be upgraded in hub and spoke model, course content and design will be aligned to the skill needs of industry and new courses will be introduced for emerging needs. I am happy to announce a new centrally sponsored scheme for skill development in which 20 lakh youth will be skilled over a period of 5 years,” she added.
Furthermore, the model skill loan scheme will be revised to facilitate loans up to RS 7.5 lakh with a guarantee from government promoted funds. This measure is expected to help 25,000 students every year.