Skill Impact Bond
Impact Created
Beneficiary profile (https://nsdcindia.org/sib)
Total enrolment: 34460+ (until 31st Jan,2025)
Women enrolment: 74%
Sectors covered: 14
States covered: 18
Cohort performance (to be retained from current webpage)
Consortium of Partners (to be retained from current webpage)
Partner bytes: (to be retained from current webpage)
1. Student case studies (to be retained from current webpage)
2. Hear from our trainee video (to be retained from current webpage)
3. Media Highlights (to be retained from current webpage)
India’s first Skill Impact Bond for sustained employment of youth
Sharing the vision of making young Indians ready for employment, the Skill Impact Bond is the first development impact bond in India dedicated to skills training and job placement. The 130 Cr fund has been set up to benefit 50,000 young Indians over four years, with 60% of the beneficiaries being women. This innovative outcomes-based financing tool uses private sector capital and expertise, focusing on job placement and retention rather than merely on training and certification.
The Skill Impact Bond links funding to achievement of outcomes, inverting the process of conventional grant-making which often funds activities and inputs. The initial financing to training providers is supported by risk investors, who are repaid by outcome funders on the achievement of predetermined, independently verified outcomes achieved by training partners.
This results in maximum impact for money spent, aligned incentives between partners, thus creating measurable social impact that spur social change
Skill Impact Bond is the first development impact bond in India dedicated to skills training and job placement. Its objective is to benefit 50,000 young Indians over four years, with 60% of the beneficiaries being women.This innovative outcomes-based financing tool uses private sector capital and expertise, focusing on job placement and retention rather than merely on training and certification.
Corporate Social Responsibility (CSR)
Overview
The CSR division of NSDC aims to co-create transformative flagship programs that advance entrepreneurship and skill development as pathways to socio-economic empowerment. With a strong focus on improving quality of life, resilience and income generation, these initiatives prioritize vulnerable groups and marginalized communities ensuring equitable access to opportunities and resources amongst them.
Objective
CSR: From Funding Activities to Creating Outcomes
NSDC’s CSR initiatives are designed to create measurable socio-economic impact by focusing not just on training, but on sustainable livelihoods. Every program is built around the learner’s journey-enabling individuals to gain skills, secure employment, pursue entrepreneurship, increase incomes, and improve their quality of life.
Through partnerships with corporates, industry, training providers, employers, and community organizations, NSDC creates an ecosystem that supports learners from aspiration to achievement, with a special focus on youth, women, persons with disabilities, transgender persons, minorities, and other underserved communities.
The NSDC Difference
Traditional CSR Approach
Investment → Training → Program Completion
NSDC CSR Approach
Investment → Skills → Certification → Employment/Entrepreneurship → Higher Income → Improved Quality of Life → Community Impact
By focusing on outcomes rather than activities, NSDC helps maximize the social and economic value of every CSR investment.
Why Choose NSDC CSR: -
• Outcome-Focused: Success is measured through employment, entrepreneurship, income enhancement, and livelihood outcomes.
• Industry-Aligned: Programs are designed in collaboration with industry to deliver market-relevant and future-ready skills.
• End-to-End Support: Learners benefit from counselling, training, certification, placement assistance, entrepreneurship support, and market linkages.
• Inclusive Growth: Dedicated efforts ensure equitable access to opportunities for underserved and marginalized communities.
• Scalable & Sustainable: Leveraging India’s largest skilling ecosystem, NSDC enables efficient, transparent, and high-impact CSR implementation at scale.
Guided by NSDC’s Core Values
Adaptable:Responsive to changing industry needs, emerging opportunities, and learner aspirations.
Trustworthy: Driven by transparency, accountability, quality, and measurable impact.
Selfless: Committed to empowering underserved communities through equitable access to skills, livelihoods, and economic opportunities.
Empowering Aspirations. Multiplying Impact. Transforming Lives.
NSDC’s CSR programs combine skilling, entrepreneurship, employment linkages, and ecosystem partnerships to create sustainable livelihoods and lasting social impact—helping corporates maximize the value of every CSR rupee invested. Empowering Aspirations. Multiplying Impact. Transforming Lives.
NSDC’s CSR programs are built on a learner-centric and outcome-driven philosophy that goes beyond training to create sustainable livelihoods and measurable social impact. By combining industry-aligned skilling, entrepreneurship promotion, employment linkages, and ecosystem partnerships, NSDC enables corporates to create transformational change while maximizing the impact of every CSR rupee invested.
NSDC's Models for CSR Programs
Candidate Sponsorship for Skill Development
• Sponsor candidates for skill development programs in priority sectors, with a focus on livelihoods, persons with disabilities, and underserved geographies.
• Enable access to quality training through partnerships with NSDF, NSDC (as applicable), and NSDC Training Partners.
• Provide industry exposure and on-the-job training using available company facilities and machinery.
• Support candidates from training to certification and employment opportunities.
• Ensure quality implementation and project management through NSDC at a nominal cost (as per Common Norms Gazette Notification).
Career Advancement & Employability Centre
Industry-aligned multi-sector training.
Advanced practical learning facilities
Specialized and future-ready skill programs
Certification and career guidance
Placement and livelihood support
Exposure to global best practices
Co-branded with Skill India.
Industry-Ready Skill Labs
Establish and upgrade trade-specific skill labs with industry-standard equipment.
Deliver hands-on training aligned to evolving workforce and industry needs.
Strengthen industry connect through apprenticeships, on-the-job training, and expert-led sessions.
Enable continuous learning through technology and knowledge-based interventions.
Support inclusive skilling by leveraging government schemes for underserved and aspiring youth.
Accessible Skill Development Infrastructure
Provide land, buildings, machinery, and training facilities for skill development initiatives.
Support training programs through infrastructure enhancement and equipment provisioning.
Enable high-employment-potential programs such as driving, construction, and other industry-focused trades.
Deliver training through NSDC-affiliated partners to ensure quality and industry alignment.
Support candidate sponsorship to improve access to skilling and employment opportunities.
Career Readiness & Skill Mentorship
Industry and NSDC collaboration to deliver high-quality, industry-aligned skilling programs.
Access to modern training centres and multi-skill learning environments.
Training aligned with NSQF standards and sector-specific workforce needs.
Guidance from industry experts, master trainers, and experienced assessors.
Continuous curriculum enhancement through Sector Skill Councils.
Strong focus on employability, certification, and career progression.
Supporting Apprenticeship through CSR
- Apprentices Act 1961 mandate apprenticeship training to ‘any area or any industry in any area’ as notified by Central Govt from time to time. Companies which are covered under the Apprentices Act shall undertake Skill Training under the Apprentice Act 1961.
• To hire more apprentices beyond the statutory requirements under the Apprentice Act 1961, Companies may utilize CSR Funds as Skill training’ is covered under item no. (ii) of Schedule VII of the Companies Act.).
• CSR funds for Apprenticeship training to include expenditure on Basic Training and stipend payable to apprentices under Apprentices Act 1961.
• Expenditure on Apprenticeship training over & above of 2.5% i.e., (minimum mandate as per Apprentices Act), can be utilized under CSR funding.
Sponsorship for Entrepreneurship and Training for Livelihood Promotion.
Skill development and training for entrepreneurs.
Facilitate business planning and market linkages.
Build long term resilience
CSR on Social Stock Exchange (SSE)
Grant on SSE by subscription of Zero Coupon Zero Principal.
10% of Total CSR budget can be invested through SSE.
Impact returns assessed by Independent Social Stock Assessors.
Multiple CSR’s donors may collaborate for one Project through SSE.
Skill Impact Bond
India’s first development impact bond for skilling, focused on placement and retention.
Mobilises private risk capital for upfront training, repaid on verified outcomes.
Targets skilling and employment for 50,000 youth with strong women’s participation.
Ties funding to independently verified outcomes, ensuring accountability and impact.
Outcome-Based & Innovative Finance
Structure outcome-based financing by aggregating philanthropic, CSR, multilateral, and government capital.
Establish multi-donor platforms to mobilise private and CSR investment in skilling.
Drive payment-by-results models for stronger skilling outcomes.
World Skills.
Empowering high-potential youth with advanced training, industry mentorship, and access to future-ready technologies.
Transforming exceptional talent into global champions through specialized coaching, skill development, and competition readiness.
Driving employment, skill excellence, and nation-building while creating meaningful ESG impact for CSR partners.
International Mobility
Training in foreign languages, cultural integration, workplace etiquettes in sectors like Hospitality, Healthcare, Agriculture, Construction, Manufacturing.
Skill Certification as per international Assessments in line with foreign employer requirement.
Facilitate job placements in foreign countries including Post placement support.
Key Projects under the program:
Skills on Wheels.
International Mobility for Specified Skilled Worker (SSW)
Skilling program for Transgender community
Disaster Management Program
Micro entrepreneurship Program
Digital Skills: for Women’s Workforce Participation
Digital and offline Skills (DOST)
Future Ready Skill Initiative
Being Inclusive towards PwD’s
Skilling program for Jail In-mates
The CSR division of NSDC aims to co-create transformative flagship programs that advance entrepreneurship and skill development as pathways to socio-economic empowerment. With a strong focus on improving quality of life, resilience and income generation, these initiatives prioritize vulnerable groups and marginalized communities ensuring equitable access to opportunities and resources amongst them.
Skill Loans
Unlock Your True Potential with The Skill Loan Scheme
Financial limits should not force you to shrink your ambitions. You have the raw talent, the drive, and the vision to build a brilliant future. The Credit Guarantee Fund Scheme for Skill Development (CGFSD) notified by Ministry of Skill Development & Entrepreneurship (MSDE) on 20th November, 2015 and further amended on 9th July, 2024 is your ultimate superpower, designed to smash through financial barriers and clear your path to a great career.
This scheme facilitates collateral-free credit to help you undertake skill development courses, offering a credit guarantee for loans extended by eligible member lending institutions.
Empower Your Journey
"Dream Big, Achieve Big!"
"Give Your Dreams Wings and Watch Them Fly!"
This scheme gives you the wings to fly high, gain industry-ready skills, upgrade your standard of living, and step confidently into the professional world.
The Skill Loan Advantage
You do not need a guarantor or valuable property to back your dreams. Parents /guardians will serve as the co-borrowers to the loan. The Government of India stands right behind you as your guarantor.
• Zero Collateral Required: No need to pledge land, gold, or property to secure your future.
• Guarantee Coverage: 70-75% of amount in default.
• Funding Range: Get need-based institutional finance anywhere from ₹5,000 to ₹7,50,000.
• Zero Processing Fees: Lenders will not charge you any processing fee to process your loan.
• No Prepayment Penalties: Pay off your loan early whenever you want without any extra fees.
Your Roadmap (Scheme Details)
Feature | The Protection It Gives You |
Who Benefits | Any Indian National ready to learn and grow. |
What You Can Study | National Skill Qualification Framework (NSQF) aligned courses. and/or Non-NSQF aligned courses by the training entities onboarded on the MSDE’s Skill India Digital Hub (SIDH) platform |
Where You Can Study | Industrial Training Institutes (ITIs), Polytechnics, School recognized by Central or State Education Boards, College affiliated to recognized University, Training Partners affiliated to National Skill Development Corporation (NSDC)/ Sector Skill Councils, State Skill Mission and State Skill Corporation. |
Coverage of Skill Loan | Course Fee, Assessment fee, Examination fee, Library Charges, Laboratory Fee, Caution Deposit, Purchase of Books, Equipment and Instruments, Boarding and Lodging etc. |
Capped Interest Rates | Maximum 1.5% p.a. over the External Benchmark Lending Rate (EBLR) for Banks and Maximum 21% p.a. for NBFCs. |
Take Flight Today!
Stop waiting for a miracle to change your life. You have the power within you, and the tools are right here.
To avail the skill loan, approach your Training Partner or step into any registered Bank or NBFC. Tell them you want to apply for a Skill Loan under the CGFSD scheme.
To know more about the scheme, please visit https://www.ncgtc.in/en/product-details/CGFSD/Credit-Guarantee-Fund-Scheme-for-Skill-Development-(CGFSD).
Access to finance is a significant constraint for aspiring candidates to pay for futuristic and in-demand industry skills courses. Under the Skill Loan initiative, NSDC gave a line of credit to NBFCs/Micro Finance Institutions at concessional rates to pass on the benefit of subsidised lending to candidates in the form of affordable interest rates. The Skill Loan Guarantee Scheme anchored by Ministry of Skill Development & Entrepreneurship enables aspiring candidates to avail collateral free skill loans for undertaking advanced level in-demand skill courses having good placement potential.
Blended Finance
Overview
Through Blended Finance, NSDC is reimagining how skill development is funded in India by mobilizing public, philanthropic, and private capital to create sustainable, outcomes-driven financing solutions. Through innovative risk-sharing structures and outcome-based financing mechanisms, NSDC is expanding learner pathways to quality skilling, entrepreneurship, employment and sustainable economic mobility.
Our Approach:
1. Risk Guarantee Structure
Risk Guarantee structure is tool that can enable lending institutions to pump in sizeable commercial capital to augment the lending portfolio in skilling ecosystem. NSDC leverages credit enhancement and risk-sharing mechanisms to reduce barriers for financial institutions investing in the skilling ecosystem.
Through guarantee-backed structures, NSDC enables lenders to extend financing to aspiring learners, training providers, and development projects that may otherwise face limited access to commercial capital.
This approach helps:
• Increase the flow of institutional capital into the skilling sector
• Improve access to skill financing for underserved populations
• De-risk investments in social and human capital initiatives
• Expand the reach and scale of development programs
2. Outcomes based financing
NSDC is a pioneer in deploying outcome-based financing models within India's skilling ecosystem. Under this model, working capital or risk investment is provided upfront to service delivery organizations to implement skill development interventions.
Success is measured against independently verified outcomes such as employment, income enhancement, retention. Investors and funders pay for proven results rather than activities alone. The result is a financing ecosystem that rewards performance and delivers greater value to beneficiaries, investors, and funders alike.
This approach:
• Improves efficiency in deployment of development capital
• Aligns stakeholder incentives around impact
• Creates accountability for measurable outcomes
• Encourages innovation among service providers
3. Social Stock Exchange
The Social Stock Exchange (SSE) is a pioneering platform that enables Social Enterprises to raise funds for impactful development initiatives through regulated capital market mechanisms.
The Social Stock Exchange leverages mature financial and capital markets to channel resources toward social causes that deliver measurable impact. It provides social enterprises with access to innovative fundraising instruments while offering investors a credible platform to support transformational development initiatives.
The SSE framework enables Social Enterprises to raise funds through a range of innovative financial instruments, including:
• Zero Coupon Zero Principal (ZCZP) Bonds
• Development Impact Bonds (DIBs)
• Social Impact Bonds (SIBs)
NSDC has successfully registered on the National Stock Exchange Social Stock Exchange (NSE-SSE) and the Bombay Stock Exchange Social Stock Exchange (BSE-SSE), strengthening its ability to mobilize capital for transformative skill development programs.
Leveraging catalytic concessional capital to mobilize private sector investment for delivering sustainable financing solutions for high impact skill development programs.