The Central Government’s VETLS (Vocational Education and Training Loan Scheme) gives a loan for skill training. It runs under the Ministry of Social Justice and Empowerment (MoSJ&E). Its aim is to help youth build their skills and employability through vocational training. The scheme works on the ‘Learn, Earn & Pay’ model. VETLS runs through three different corporations — apply to the right one as per your category.
Three corporations, three versions
NBCFDC’s VETLS is for youth of the Backward Classes (BC) — family income must be below ₹3 lakh a year. The loan is up to ₹1 lakh for courses up to 1 year and up to ₹1.5 lakh for courses of 1–2 years. NSFDC’s VETLS is for youth of the Scheduled Castes (SC) — loan up to ₹4 lakh, income below ₹3 lakh, age up to 50 years. NSKFDC’s VETLS is for youth of the safai karamchari community — loan up to ₹4 lakh, age 18–50 years. In all three, the interest is just 4% a year; under NSKFDC, women pay 3.5% interest.
Course and loan conditions
The loan is for vocational training courses of 6 months to 2 years. The course must be at an institute supported by a government ministry/department, NSDC or a State Skill Mission. Under the NSKFDC version, the loan covers up to 90% of the course expenses. The loan has to be repaid in up to 7 years — under NBCFDC, 5 years for courses up to 1 year and 7 years for courses of 1–2 years. A moratorium of 6 months is also given after the course ends. The loan is given without collateral.
Who can apply
The applicant must belong to the target group of the concerned corporation — NBCFDC for BC, NSFDC for SC and NSKFDC for the safai karamchari community. Family income must be below ₹3 lakh a year. Under the NSKFDC version, the age must be between 18 and 50 years. The applicant must have taken admission in a vocational course of 6 months to 2 years at a recognised institute. The course must be at a government or NSDC-supported institute. The loan can be used for course fees, books, equipment and boarding and lodging expenses.
How to apply
Apply through the website of the corporation for your category or its channelising agency — NBCFDC (nbcfdc.gov.in), NSFDC (nsfdc.nic.in) or NSKFDC (nskfdc.nic.in). You can also contact your district’s channelising agency, Regional Rural Bank or public sector bank. Submit the caste certificate, income certificate, admission proof and bank account details with the form. Check the latest process on the concerned corporation’s website — never pay anyone for applying.
Frequently Asked Questions
Q1: How much loan is given under VETLS? A: From ₹1 lakh to ₹4 lakh as per the corporation — up to ₹1.5 lakh under NBCFDC and up to ₹4 lakh under NSFDC and NSKFDC.
Q2: How much interest is charged? A: Just 4% a year; women pay 3.5% interest under NSKFDC.
Q3: In how much time must the loan be repaid? A: In up to 7 years; a 6-month moratorium is also given after the course ends.
Q4: Where do I apply? A: Through the corporation for your category — NBCFDC, NSFDC or NSKFDC — its website or channelising agency.
Useful links
- VETLS Scheme on MyScheme: https://www.myscheme.gov.in/schemes/vetls
- Ministry of Social Justice and Empowerment: https://socialjustice.gov.in/
- Next Action: see all 726 Central Government schemes — https://www.viksitharyana.com/english/kendra-sarkar-ki-yojnayen-2/
