Pradhan Mantri Rozgar Yojana or PMRY is a government scheme launched in 1993 to create employment opportunities in the country. The PMRY scheme offers capital assistance to those eligible at a reasonable interest rate for their business venture. This financial aid can be invested in trading, service or manufacturing businesses.
Prime Minister Rozgar Yojana benefits recent graduates who require funds to set up their businesses. You can enjoy the benefits of the PMRY scheme by applying online or offline depending on your comfort and convenience.
The following table illustrates the eligibility criteria one needs to satisfy to avail of a loan under the PMRY scheme:
Criteria |
Condition |
Age |
|
Employment Status |
Must be unemployed |
Minimum Educational Qualification |
Must have studied till Class 8th |
Residency |
Should be a permanent Indian resident |
Family Income |
The family income of the beneficiary, including that of the spouses and parents, should not exceed ₹40,000 per month |
Credit Behaviour |
Should not be a defaulter at any nationalised financial institution/bank |
Subsidy and Margin Money |
The lending institutions will ask the borrower to cover anywhere between 5-12.5% of the project cost to make the total subsidy and margin money equal to 20% of the project cost. The interest subsidy will be 15% of the project cost and capped at ₹15,000 per month. |
Eligible Sectors |
As long as the business plan is economically viable, all the sectors, except for those directly connected to agriculture and other sectors where income is now earned from farming activities, are eligible. |
You need to follow the below-mentioned steps to apply for a PMRY loan online:
Visit the official online portal of the Pradhan Mantri Rozgar Yojana scheme: https://pmrpy.gov.in/.
Fill in the required details on the application form downloaded through the portal.
Submit the form at your local District Industries Centre (DIC) or the nearest PMRY-authorised bank.
After the application and the documents are reviewed, you will be called for an interview.
Post the interview, the officials will shortlist those candidates whom they deem eligible for a PMRY loan.
Those eligible for the PM Rojgar loan will have to undergo training which will last for about 15-20 days. The selected candidate may have to pay a certain fee for the training. The training empowers the to-be beneficiaries with knowledge concerning the prevalent socio-economic scenario and teaches them the art of identifying business opportunities.
Once the training is complete, the beneficiaries are given a certificate, known as EDP or Entrepreneurship Development Programme Training Certificate. This certificate must be submitted along with the rest of the documents to an authorised bank for the disbursal of the PMRY loan.
No collateral is required to avail of a loan of up to ₹1 Lakh under PMRY.
A subsidy of 15% of the cost of the project (subject to a maximum of ₹15,000) is offered under the Pradhan Mantri Rozgar Yojana.
The loan granted under the PMRY is to be repaid within 3 to 7 years after the initial moratorium period.
A training of 15 to 20 days is provided to PMRY borrowers to help them get started with their businesses.
You need to have been residing at your current address for at least three years to be eligible for a loan under the PMRY.
Under the PMRY loan scheme, there is a training period of 10 days in the business and services sector and 15 days in the industry sector.
The applicant applying for the Pradhan Mantri Rozgar Yojana loan should have a minimum qualification of the 8th standard.