Table of Contents
What is Pradhan Mantri Rozgar Yojana (PMRY)?
Pradhan Mantri Rozgar Yojana (PMRY) is an initiative announced by the government whose primary objective is to be able to provide employment to the educated unemployed youth. This will be made possible by setting up micro-enterprises, this will not only promote self-sufficient employment but also ensure that the youth is looked after.
In 1993 Pradhan Mantri Rozgar Yojana was launched with the sole purpose to provide employment to young men and women in India, by providing financial assistance to start a self-sufficient enterprise in the service sectors or even manufacturing.
What are the features of Pradhan Mantri Rozgar Yojana (PMRY)?
There are many viable features under the Pradhan Mantri Rozgar Yojana, some of them are as follows:
- All necessary training is provided to the borrowers for at least 15-20 days prior to setting up their business
- Since Pradhan Mantri Rozgar Yojana is backed by the government the repayment tenor period is from 3 to 7 years
- Borrowers have the ability to repay the sanctioned loan amount in the form of easy monthly installments.
- Under the Pradhan Mantri Rozgar Yojana, borrowers can avail of the subsidy that has been made available to them. Borrowers may claim 16% of the project as subsidized although the upper limit of this amount has been set to Rs. 12,500 per borrower.
- Borrowers may claim a loan of Rs 1 lakh without providing any collateral
- Projects in business, service and industry sectors can also apply for a loan.
- Development Commissioner undertakes the progress of the Pradhan Mantri Rozgar Yojana for small-scale industries and the State Committee that is overseeing the progress of the scheme provides intervention every quarter
- This scheme is not only made available to the rural areas but also the metropolitan cities
What is the eligibility for Pradhan Mantri Rozgar Yojana (PMRY)?
Before you apply for the benefits of the Pradhan Mantri Rozgar Yojana you must understand that there are a few factors to consider regarding your eligibility for this scheme.
- You must be an unemployed individual between the age of 18 to 35 years
- You must have an 8th standard passing qualification
- You must be a permanent resident of a locality for a minimum of 3 years
- Your family income should not exceed more than Rs. 1 Lakh or at least be a minimum of Rs. 40,000/-
- Your credit history should not reflect any defaulted payments with any financial institution
- In case you qualify for the reservation you must belong to a weaker section like SCs/STs
Note: SC/ST applicants, physically challenged individuals, and ex-military can avail of relaxations of 10 years under the scheme’s age criteria. Meanwhile, in the North-Eastern States the upper age limit has been set to 40 years and SC/ST applicants are eligible up to the age of 45 years
Which documents are required for Pradhan Mantri Rozgar Yojana (PMRY)?
Before applying for the Pradhan Mantri Rozgar Yojana, you will require a wide range of documents that are to be submitted.
- Filled application for applying for the scheme
- Passport sized photographs for verification
- Proposed project on which you avail the loan
- Residence proof for the past 3 years: Aadhaar card, ration card, voter ID
- Caste certificate which denotes if you are under ST/SC
- Proof of birth: Birth certificate
- Qualification: College degree if available or high school SSC certificate
- Other forms of identification: Pan Card, Aadhar Card, Passport and driving license
- Experience letters from previous employees
- EDP Training certificate
- Technical certificates if available
How to apply for the Pradhan Mantri Rozgar Yojana?
You can follow these steps to apply for the loan
Step 1: Visit the Pradhan Mantri Rozgar Yojana website https://pmrpy.gov.in/ to get a copy of the application form.
Step 2: Fill in the necessary details in the application form.
Step 3: After filling out the form you must submit the application to the concerned bank listed under the Pradhan Mantri Rozgar Yojana.
Step 4: Once the application is submitted the banks will approve the loan and get in contact with you.