Finance Minister Nirmala Sitharaman said on Tuesday during the presentation of the Union Budget 2024–25 that the government will provide financial support for loans of up to Rs 10 lakh for higher education in domestic institutions. She continued by saying that each year, about 1 lakh students will gain from this because they will receive direct e-vouchers with an interest subsidy of 3% of the loan amount.
Sitharaman said while presenting her seventh budget for the central government, "For helping our youth who have not been eligible for any benefit under govt schemes and policies 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."
Furthermore, the Finance Minister was informed that the government would be pushing the skill development sector through a number of initiatives, including updating 1,000 Industrial Training Institutes (ITIs) using a hub-and-spoke model, matching course content to industry skill needs, and revising the model skill loan program.
She further said,"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 period of 5 years".
The Finance Minister announced that 25,000 students would benefit annually from the revision of the model skill loan scheme, which will now allow loans up to RS 7.5 lakh with a guarantee from a government-promoted fund.
A fund of Rs 1.48 lakh crore has been allocated for employment, skill development, and education in the nation, according to the Union Budget for 2024–2025.
