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Tata Capital > Blog > Loan for Business > Pradhan Mantri Kaushal Vikas Yojana (PMKVY): All You Need to Know

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Pradhan Mantri Kaushal Vikas Yojana (PMKVY): All You Need to Know

Pradhan Mantri Kaushal Vikas Yojana (PMKVY): All You Need to Know

Do you know India's present unemployment rate is 6.57%? This is the highest in the last four decades! A shortage of jobs is not the only reason behind this staggering figure. At 17%, the country has a fairly high number of secondary school dropouts, making them harder to employ.

To remedy this, the Ministry of Skill Development and Entrepreneurship (MSDE) has launched Phase 3.0 of the Pradhan Mantri Kaushal Vikas Yojana on 15th January 2021. Participants eligible to register under this scheme receive industry-level skill training to help them secure their livelihood. The entire cost of training and assessment of students comes from a budget of Rs. 12,000 crores pre-allocated by the central government.

Here are a few key components that form this scheme.

Short-term training

This scheme's short-term training programmes fall within the National Skills Qualification Framework (NSQF) and are usually 150 to 300 hours long. During this training process, various centres train students in soft skills and entrepreneurial skills along with imparting financial and digital literacy.

In addition to making students more employable, this course also empowers them to open their own small ventures, for which they can apply for a business loan at any lending institution. 

Additional read: Know How PMKVY Can Help You to Start Your Own Business?

Special projects

Under this component, the scheme provides training in special premises or areas within government or corporate bodies and offices. Essentially, students learn on the job by fulfilling specific designations that are not defined under National Occupation Standards (NOSs) or Qualification Packs (QPs).

Recognition of prior learning (RPL)

The RPL component evaluates an individual’s existing knowledge and skill set and recognizes any prior formal or informal work experience they have. After the assessment is complete, students are offered bridge courses to cover any knowledge gaps, thus readying them for the current market scenario.  

Kaushal and Rozgaar Mela

Conducted every six months by the scheme’s training partners and with media coverage, the Kaushal and Rozgaar Mela is where employers can gauge students and extend employment offers. This event must have at least four companies providing job offers to students who have successfully completed their training under this scheme.

Placement assistance

What is PMKVY without placement assistance? Here, the training partners provide placement assistance and also entrepreneurial support to individuals certified under this scheme, as not all students may get hired during the Kaushal and Rozgaar Mela.  

Continuous monitoring

To maintain high-quality standards, timely inspection and audits are critical. Therefore, empanelled agencies conduct quality checks through surprise visits, phone calls, and Skills Development Management System (SDMS).

How to apply for this scheme?

  • Log on to the official website.
  • Click on "Quick Links". After which, click on the "Skill India" button.
  • Now click on the tab that says “Register as a Candidate”. Fill out the online registration form with your personal details, location, course preference, etc.
  • After this, click on “Submit” to complete your registration.

Additional read: Things to Know Before Availing an Education Loan for Studies in India

In conclusion

Already have the skillset to start a business but falling short on funds? If so, turn to Tata Capital for finance at affordable business loan interest rates with flexible repayment tenures and minimal paperwork.

Our business finance offerings can help you cover all business expenses; from daily working capital needs to inventory and equipment purchasing. So, why the wait? Visit our website to check your potential instalments using our business loan EMI calculator, and apply today!

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