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Vocational Education and Training Loan Scheme (VETLS)


Vocational Education and Training Loan Scheme (VETLS)

National Backward Classes Finance and Development Corporation (NBCFDC) of India has introduced a new scheme called VETLS to fund the training programs organized by the Central Government. The Vocational Education and Training Loan Scheme (VETLS) is in coincidence with a model named as ‘Learn, Earn & Pay’ which is outlined in the National Policy for Skill Development and Entrepreneurship for the year 2015.

Objective of VETLS

  • To provide financial aid in the form of loan to the targeted youth to enhance their skills and employability by pursuing Vocational Educational and Training Courses in India.
  • According to the Report on Human Resource & Skill Requirements in various sectors till the year of 2022, prepared by the Country’s National Skill Development Corporation, there exists a skill shortage of 176.58 million in different critical areas of the economy.
  • The Scheme would provide an ample number of opportunities for technically skilled individuals to secure standard employment within the country or abroad.
  • Therefore, there is an immediate requirement to provide institutional funding at concessional rates to the students of the target group who are willing to undergo Skill Development Programmes in recognized institutions.
  • Under the proposed Scheme, loans shall be provided to persons of the target group for meeting training costs for a duration between six months to two years.
  • The present Scheme of providing Grants from NBCFDCs/MOSJ&Es resources / any other resource, for skill development training program of duration below six months, shall continue to be implemented as before.

Eligibility Criterion

Course Eligibility

Training Course and Vocational Education of a duration for upto two years are supported by the corresponding Ministry or Department of the Government or a Company / Organization/ Society supported by National Skill Development Corporation or State Skill Mission/ State Skill Corporation. It is preferably leading to a Certificate / Diploma / Degree issued by a Government Organization or any other firm recognized and authorized by the Government to carry out the documentation process.

Vidya Sahay

Bridge Loans are being offered to students who appear for Counseling Sessions at CET Centers under this Scheme. Bridge Loans has to be cleared after sanction of regular Education Loan. The maximum eligible amount would be INR 1,00,000 or an initial payment as proposed by the CET Authorities.

Vidya Turant

To support the needy and meritorious students who are in need of education loan and are pursuing their higher studies in reputed institutions such as IIMs/IITs/NITs/IISc/ISB (Hyderabad & Mohali) and other renowned institutes affiliated to the Government only.

Trainee Eligibility

  • The trainees under this Scheme must belong to the Backward Class community.
  • The yearly family income of the applicant should not exceed INR 3,00,000
  • The trainees should have assured admission in any of the courses run or supported by a Ministry of the Government or an affiliated Organization supported by National Skill Development Corporation or State Skill Missions or State Skill Corporations.
  • Sector Skill Council approves these courses, preferably leading to a Certificate / Diploma or Degree issued by a Government Organization or any other firm recognized and authorized by the Government.

Age Limit

The minimum age limit of an individual enrolling towards VETLS may be decided by taking a keen notice on the course module. Although there is no certain restriction with regards to the age of the trainee to be eligible for the loan. However, if in case, the trainee is minor while the parent executes documents for the loan then, the channelizing agency shall obtain a letter of ratification from the candidate upon attaining majority. And if a person is unemployed and upto 50 years of age, and desirous of undergoing the Vocational Education & Training, he/she could be considered on case to case basis.

Training Expenses

  • Admission / Tuition fee.
  • Caution Deposit.
  • Boarding & Lodging.
  • Examination, Library, Laboratory Fee.
  • Purchase of Books, Equipments, Instruments.
  • Insurance for the loan amount.
  • And any other reasonable expenses found necessary for completion of the course certified by Vocational Education & Training Institute.

Quantum of Finance

Requirement based finance to meet 100% expenses, and it will subject to the following ceilings;

  • For courses of duration upto one year: Upto INR 1,00,000
  • For courses of duration above one year & upto two years: Upto INR 1, 50,000

Note: In certain cases if cost over-run prevails, it shall be paid by the beneficiary.

Rate of Finance

NBCFDC shall charge interest at a rate of 1.5% per annum from the Channelising Agency which, in turn, shall charge 4% per annum from the beneficiary. In the case of women, an interest rebate upto 0.5% shall be provided.

Moratorium Period

The moratium period is stated to be for a span of six months from the date of completion of the under-taken course or acquiring employment, whichever is earlier.

VETLS Security

The Channelising Agency shall provide Government Guarantee / Bank Guarantee / Fixed Deposits to the NBCFDC, which is valid upto the repayment period of the loan, for the funds sanctioned or disbursed to them under the Scheme. The Government Guarantee, Bank Guarantee and the Fixed Deposit shall be available before availing the Scheme.


The loan shall be repaid in quarterly, including the applicable moratorium period of six months.
Courses having duration upto one year: 5 Years
Courses having duration above one year & upto two years: 7 Years
The borrower can repay the loan any time after the commencement of loan repayment. No preclosure charges shall be insisted from the beneficiary in case of early repayment of loan.

Takeover of Loan

NBCFDC shall take over the Bank Loan for courses which have started after the date of introduction of the Scheme provided all the eligibility criteria are fulfilled as well as No Objection Certificate, and a copy of Sanction Letter are obtained from the Banks. In case the Banks levy any for enclosure charge, the candidates shall bear the same.

Vocational Education & Training Loan during the currency of the course shall be considered on Channelising Agency’s recommendations for courses which have started after the date of introduction of Scheme by NBCFDC. However, Vocational Education Loan shall not be provided for the courses which were completed in prior.

For further details about the Vocational Education and Training Loan Scheme of NBCFDC contact the toll-free number 18001023399 or compose a mail to [email protected]. The users may also visit the official website of NBCFDC for other clarifications.