CGFSSD

Credit Guarantee Fund Scheme for Skill Development

A government-backed guarantee that absorbs default risk on qualifying skill-development loans - so lenders can offer better pricing, longer tenors, and zero collateral to borrowers entering approved training programs.

Check my eligibility All guarantee programs

Backed by

Ministry of Skill Development & Entrepreneurship, Govt of India

Guarantee coverage

Up to 75%

Max loan amount

₹7,50,000

Guarantee fee

0.50% p.a., borne by the lending institution

Official source: NCGTC - CGFSSD official page

The flow

How CGFSSD works.

Enrol

Student secures admission in an approved skill course.

Apply

Lakshya routes the loan application to an empanelled lender.

Guarantee

CGFSSD guarantee cover is activated - lender risk drops.

Disburse

Funds released to the training partner. Repayment is deferred during the moratorium.

Repay

EMI begins after the moratorium; interest is capped near the lender's RLLR + 1.5%.

Benefits

Why CGFSSD matters.

Collateral-free and third-party-guarantee-free up to ₹7.5 lakh
Moratorium covers the course plus up to one year before repayment starts (interest still accrues)
Sovereign guarantee de-risks the lender, enabling better loan pricing
Interest capped near the lender's benchmark rate (around RLLR + 1.5%)
Encourages formal skill financing for underserved youth
Seamless integration with Lakshya's lending workflow - eligibility auto-routed

Eligibility

Who qualifies.

01Indian nationals admitted to an eligible course (no age bar under the revised scheme)
02Courses at ITIs, polytechnics, recognised schools/colleges, and NSDC / SSC / State Skill Mission training partners
03Loan disbursed through an empanelled NBFC / bank
04Borrower must not have an existing default on bureau records

Frequently asked