What is the significance of Credit guarantee cover extension under the revamped Model Skill Loan Scheme
Understanding the extension of credit guarantee cover and its implications under the Model Skill Loan Scheme.
- Enhanced access to funding: The extension of credit guarantee cover under the revamped Model Skill Loan Scheme provides a safeguard for financial institutions, encouraging them to offer loans for skill development programs.
- Risk mitigation for lenders: The credit guarantee cover mitigates the risk for lenders, enabling them to provide loans to a broader range of individuals, including those with limited credit history or collateral.
- Promotes skill development: By facilitating easier access to loans for skill development programs, the extension of credit guarantee cover helps in promoting a skilled workforce, contributing to economic growth.
- Encourages entrepreneurship: Individuals who receive loans for skill development may also pursue entrepreneurship ventures, leading to job creation and economic empowerment.
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9 months ago