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.  

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.