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Launched in 1993, Pradhan Mantri Rozgar Yojana (PMRY) encourages self-employment among the educated but unemployed youth. The scheme offers financial aid to individuals wanting to start a business in service, manufacturing, or trading sectors.


In addition to the financial support, the scheme also offers the necessary training to help them manage their ventures. 

Features of the PMRY Scheme

Some of the distinct attributes of the scheme are as follows:

  • The scheme offers composite loans of up to ₹1 Lakh for projects in the business sector, which can be up to ₹10 Lakhs if 2 or more eligible persons apply jointly

  • There is no collateral requirement for projects of up to ₹1 Lakh 

  • There is a reservation of 27% for other Backward class (OBCs) and 22.5% for SC/ST beneficiaries

  • DCSSI (Development Commissioner for Small Scale Industries) sets the yearly state-wise target for the beneficiaries of the scheme

  • The subsidy offered is capped at 15% of the project, maximum up to ₹7,500 per entrepreneur

  • The scheme covers operational and training expenses of up to ₹2,000 per case

  • The repayment period can range between 3-7 years, and the interest rates will be as per normal bank rates

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Eligibility Criteria of the Pradhan Mantri Rozgar Yojana

To apply for a loan under the PMRY scheme, you need to meet the following eligibility requirements:

  • You should be between the age of 18-35 years.

  • Relaxation of 10 years for SC/STs, physically handicapped, ex-servicemen, and women applicants is provided 

  • You should have cleared the 8th standard exam

  • The total of your income combined with your spouse’s or your parent's income should not exceed ₹40,000 per annum

  • You should be a permanent resident of the area for at least 3 years

  • You should not be a defaulter for any financial institution or a beneficiary of other government-linked schemes

Documents Required

Along with meeting the above eligibility parameters, you will have to submit the following documents when applying for the scheme:

  • Application form with photographs

  • Proof of identity – PAN card, Aadhaar card, driver’s licence, passport

  • Proof of age – birth certificate or other accepted documents

  • Proof of income issued by the MRO (Mandal Revenue Officer)

  • Proof of residence – Ration card or other accepted documents

  • Proof of education

  • Caste certificate issued by MRO, if required

  • Profile of the proposed project

  • EDP (Entrepreneurship Development Programme) Certificated

  • An affidavit signed by the notary officer

  • Other documents, as requested by the lender

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Implementing Agency for the PMRY Scheme

Here is an overview of the implementing agencies of the Pradhan Mantri Rozgar Yojana:

  • The Development Commissioner (Small-Scale Industries) under the Ministry of Small Scale, Rural and Agro, Industries Government of India is the apex body

  • The implementation of the scheme at the State level, except for 4 metropolitan cities, is under the respective Commissioner/Director of Industries

  • In the metropolitan cities, Small Industries Service Institute (SISI) implements the scheme

  • DCSSI formulates the regulations, rules, and guidelines and offers clarification on matters about the PMRY scheme

  • DCSSI is also responsible for monitoring the progress of the scheme

  • On a state level, the State Level PMRY Committee is responsible for monitoring the progress

How to Apply for a PMRY Loan?

To apply for a loan under the PMRY scheme, follow these steps:

  • Step 1: Visit the official website at https://pmrpy.gov.in/ 

  • Step 2: Fill in the application form with the required details

  • Step 3: Submit the form to the local DIC or PMRY-registered bank

  • Step 4: Appear for the interview after your application is reviewed


After the interview, the responsible authorities will shortlist candidates they consider to be eligible for a loan under the scheme.

FAQs on the Pradhan Mantri Rozgar Yojana

Who can apply for a loan under the PMRY scheme?

The scheme aims to encourage self-employment opportunities among the educated but unemployed youth across the country. So, individuals who meet this and other requirements can get a loan under this scheme.

Can you get funding for the full project under PMRY?

No, the loan offered under this scheme is subject to a portion of the project cost. You will need to pay the margin money as a down payment before the sanction of your loan.

What is the subsidy offered under the PMRY scheme?

You can get a subsidy of 15% of the project costs, subject to a maximum of ₹7,500 per entrepreneur.

What is the repayment period for a loan under PMRY?

The repayment tenure of a loan under the Pradhan Mantri Rozgar Yojana can be between 3 to 7 years after the moratorium period.

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