Personal Loan Scheme By Government For Unemployed Youth - Pradhan Mantri Rozgar Yojana (PMRY)

Pradhan Mantri Rozgar Yojana is a government initiative that caters to the educated unemployed youth of the country. Read to know more here!

26 Nov,2022 17:35 IST 294 Views
Personal Loan Scheme By Government For Unemployed Youth - Pradhan Mantri Rozgar Yojana (PMRY)

In 1993, the central government started the Pradhan Mantri Rozgar Yojana to empower the educated youth and women of the country with self-employment opportunities. Under this scheme, the government provides subsidised financial assistance as well as training for securing a source of livelihood in trading, manufacturing as well as service sectors.

Eligibility

Some of the eligibility norms that the applicants should have are listed below:

Age

  • General category beneficiary - between 18 and 35 years

  • Applicants (including women) belonging to SC/ST as well as physically challenged and ex-servicemen applicants - upper age limit of 45 years

  • Applicants from the seven north-eastern states - upper age limit of 40 years

Education

  • Must have passed the 8th standard (Earlier, the minimum educational requirement was appearing the matric examination)

  • Preference is given to candidates who have received training in any trade for six months from a government-recognised institution

Residence

  • Living permanently in the current area for a minimum of three years

Family income

  • Income up to Rs 40,000 per annum of family (including the income of spouse or parents)

  • For married women, the income of their parents-in-law is considered

  • A person already with a subsidy-linked programme is not eligible for assistance under the PMRY

  • More than one member of a family can’t take benefit under the scheme

  • Another member of the same family having assistance under any other Central/State/State-owned Corporation sponsored scheme (with/without subsidy) is eligible for this scheme

Credit status

  • No history of loan defaults

Reservation

  • Women, SC, ST and OBCs

Eligible sectors

  • All economically viable activities including agriculture and allied activities (except those in direct agricultural operations where income is directly earned from farming activities)

Documents

Applicants must submit a list of documents for getting financial assistance under PMRY. These include:

• Identity proof (Passport/ PAN Card/ Driver’s license)
• Age proof (Birth certificate or school certificate)
• Address proof validating the minimum residence requirement of three years (Ration card, etc.)
• Entrepreneurship Development Programme (EDP) training certificate
• Income Certificate issued by the Mandal Revenue Officer (MRO)
• Caste Certificate from MRO, if applicable
• Academic and technical certificates
• A copy of the scheme/project report of the proposed venture

How To Apply For Loan Under The PMRY

For online registration and loan application process, the below-mentioned steps must be followed:

Step 1: Visit the official website of Prime Minister’s Rozgar Yojana https://pmrpy.gov.in/. Download the application form and fill it. Applicants can also collect a hard copy of the PMRY form.

Step 2: To submit an online application the form must be uploaded along with the scanned copies of the documents. Else, the hard copy of the form along with the required documents must be submitted at the District Industry Centres or the respective bank that comes under the PMRY scheme.

Applicants also need to submit a project idea report that should include details about assets, expenditure, production cost and other details.

All the applications are thoroughly scrutinized at the District Industry Centers (DIC). Selected candidates are called for an interview to assess their knowledge about the proposed project. Once the final selection is done, beneficiaries receive training for 15 to 20 days. After the completion of the training, the loan amount is disbursed into the beneficiary's bank account.

Repayment Of The Loan

The repayment schedule of the EMIs starts after the initial moratorium period in the plan is over. The repayment tenor of the loan offered under PMRY is from three years to seven years. The rate of interest is the normal rate of interest or the prevailing rate of interest from time to time.

Implementing Agencies

The primary supervisory body responsible for the PMRY scheme is the Development Commissioner for Small Scale Industries (DSCSSI). At the state level the Directorate of Industries is accountable for the implementation of the scheme, except for the four metropolitan cities.

Each quarter, the progress work is to be tracked by the state-level PMRY Committee and implementing agencies of the metropolitan cities.

Features Of The Of The PMRY Scheme

Some of the key features of this scheme are:

• Collateral-free loans of up to Rs 1 Lakh are available to PMRY beneficiaries.

• A subsidy of 15% of the project cost up to a maximum of Rs 12,500 for every individual. For beneficiaries from north-eastern states, Himachal Pradesh, Uttarakhand and Jammu and Kashmir it is extended up to Rs 15,000.

• Banks are allowed to take margin money from the borrower varying from 5 percent to 16.25% of the project cost, provided that the total of subsidy and the margin money cannot exceed 20% of the project cost.

• The project cost under PMRY covers a maximum of Rs 2 lakh for business sector and Rs 5 lakh for service sector and industry sector, respectively.

Conclusion

The Pradhan Mantri Rozgar Yojana is a loan scheme aiming to provide self-employment opportunities to educated and unemployed men and women of India.

However, if you are not eligible for the PMRY loans, you can avail a business loan at IIFL Finance. With a 100% digital application process, IIFL Finance offers instant loans for businesses with minimal paperwork. IIFL Finance’s unsecured business loans come with competitive interest rates and easier repayment terms.

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