Vocational Education and Training Loan Scheme (VETLS)

What is the Vocational Education and Training Loan Scheme?

Vocational Education and Training Loan Scheme (VETLS) is a concessional loan scheme run by the National Scheduled Castes Finance and Development Corporation (NSFDC) under the Ministry of Social Justice and Empowerment. It finances vocational education and skill-training courses for Scheduled Caste youth so that they can improve their employability and earning capacity.

According to the NSFDC scheme page, VETLS provides a need-based loan of up to Rs 4 lakh for courses of up to two years' duration. NSFDC charges interest of 1.5% per annum to the State Channelising Agency, which in turn lends to the beneficiary at 4% per annum. Women beneficiaries receive a 0.5% rebate, so their effective rate is 3.5% per annum. The loan can cover the full cost of the course, including tuition and examination fees, equipment, books, and boarding and lodging.

Key features

• Loan up to Rs 4 lakh for eligible vocational and skill courses.
• Beneficiary interest rate of 4% per annum, 3.5% for women.
• Covers courses run or supported by a government department, NSDC, or a State Skill Mission / State Skill Corporation.
• Repayment within seven years, with a six-month moratorium.
• Delivered through State Channelising Agencies, not directly by NSFDC.

Who is eligible for VETLS?

You can apply if:

• You belong to a Scheduled Caste community, with a valid caste certificate.
• Your annual family income is below Rs 3 lakh (the same ceiling applies in both rural and urban areas).
• You have secured admission to an eligible vocational or skill course of up to two years, run or supported by a government body, NSDC, or a state skill mission.
• You are generally up to 50 years of age.

You cannot apply if:

• You do not belong to a Scheduled Caste, or cannot produce a caste certificate.
• Your family income exceeds Rs 3 lakh a year.
• Your course is not run or supported by an eligible government or NSDC/state-skill institution.
• You want to approach NSFDC directly: individuals cannot borrow from NSFDC itself; the loan must be routed through a State Channelising Agency.

Note that a parallel VETLS operated by NBCFDC for Backward Classes was discontinued from 1 October 2023 and merged into its Educational Loan Scheme. If you belong to the Backward Classes, ask your state corporation about the merged educational loan instead.

What documents are required for VETLS?

How to apply for VETLS

VETLS is delivered through State Channelising Agencies (SCAs): usually the state SC finance and development corporation. NSFDC does not accept individual applications. To apply:

1. Identify your State Channelising Agency for NSFDC — the SC/ST finance and development corporation in your state or union territory.
2. Confirm your eligibility: Scheduled Caste status, family income below Rs 3 lakh, and admission to an eligible course.
3. Obtain and complete the VETLS loan application form from the SCA's district office or website.
4. Attach the caste certificate, income certificate, admission proof, identity and bank details, and the course fee break-up.
5. Submit the application to the SCA, which appraises the proposal and, if sanctioned, disburses the loan and manages repayment.

The SCA is your single point of contact for sanction, disbursement, and any grievance about your loan.

How much benefit does VETLS provide?

VETLS lends up to Rs 4 lakh for a course of up to two years and can meet 100% of eligible expenses. The beneficiary rate is 4% per annum (3.5% for women), well below commercial education-loan rates. Repayment is spread over up to seven years, and a six-month moratorium applies from the end of the course or the start of employment, whichever comes first, so repayment begins only after the borrower has a chance to start earning.

Help and where to apply

• NSFDC (head office): 011-26382476
• Official portal: nsfdc.nic.in
• Apply through: your State Channelising Agency (state SC finance and development corporation)

Because the loan is routed through a state agency, the exact application form, list of eligible courses and disbursement timeline can vary by state. Always confirm the current terms with your State Channelising Agency before enrolling in a course.