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.
Backed by
Ministry of Skill Development & Entrepreneurship, Govt of India
Guarantee coverage
Up to 75%
Max loan amount
₹7,50,000
Guarantee fee
Borne by the lender (passed as subvention)
Official source: NCGTC - CGFSSD official page
How CGFSSD works.
01
Enrol
Student secures admission in an approved skill course.
02
Apply
Lakshya routes the loan application to an empanelled lender.
03
Guarantee
CGFSSD guarantee cover is activated - lender risk drops.
04
Disburse
Funds released to training partner. Borrower pays zero during course.
05
Repay
Post-course EMI begins - equal principal installments, no interest burden.
Why CGFSSD matters.
- Zero collateral for borrowers on eligible skill loans
- Interest subvention during course moratorium - borrower pays zero EMI while training
- Sovereign guarantee de-risks the lender, enabling better loan pricing
- Covers courses approved under NSDC / Sector Skill Councils
- Encourages formal skill financing for underserved youth
- Seamless integration with Lakshya's lending workflow - eligibility auto-routed
Who qualifies.
- 01Indian nationals aged 15–45 enrolling in an eligible skill program
- 02All NSDC partner courses and all NSQF-aligned courses are eligible
- 03Loan disbursed through an empanelled NBFC / bank
- 04Borrower must not have an existing default on bureau records
Answered in plain language.
Next step