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.

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.