Pradhan Mantri Rozgar Yojana (PMRY) has been introduced by the Central Government to provide sustainable self-employment opportunities to 10 Lakh unemployed, educated youth in India. The PMRY initiated this propaganda during the 8th plan period since its inception in 1993. This scheme offers financial assistance to help the unemployed youth start their business ventures in sectors such as trade, manufacturing, service sectors, etc.
The Pradhan Mantri Rozgar Yojana strives to set-up 7 Lakh MSMEs through inducting business ventures and services throughout 2 and a half years. Its vision is to utilize local resources and technology for productive purposes and to exploit the domestic market from the micro-level.
Features of PMRY Scheme
The features of Pradhan Mantri Rozgar Yojana scheme are –
- This scheme covers economically viable business options, including agriculture and allied services. However, the plan is excluded from direct agricultural operations.
- PMRY offers project cost coverage of Rs. 5 Lakh. Rs. 2 Lakh and Rs. 5 Lakh for the industry, business and service sectors respectively.
- The repayment tenor for this loan for self-employed ranges between 3 to 7 years after the completion of the moratorium period.
- PMRY scheme also provides an interest subsidy of 15% on the cost of a project with a maximum of Rs. 12,500 allotted to every individual. However, the maximum subsidies extend up to Rs. 15,000 for Himachal Pradesh, Jammu & Kashmir, Uttaranchal, and the North-Eastern states.
Alternatively, you can also opt for a Loan against Property from NBFCs like Bajaj Finserv by mortgaging your property. They offer substantial loan amounts against easy-to-meet eligibility criteria, minimal documentation other than substantial loan amounts.
They also provide pre-approved offers to existing customers on such loans. These offers are applicable on credits like personal loans, business loans, home loans among a host of other financial products.
Plus, do not forget to use a self-employed loan EMI calculator to estimate the monthly outflows. This way, you can plan your budget and improve your financial management. You must also check your eligibility criteria and the list of documents needed to apply for a loan against property.
Eligibility Criteria for PMRY Scheme
You have to meet these eligibility requirements to apply for a loan for self-employed under the PMRY scheme –
- The applicant must be an unemployed individual within the age bracket of 18-35 years.
- Must possess a minimum qualification of 8th standard pass out to apply for this advance.
- Must be a permanent resident of at least 3 years from the area he/she is applying
- Family income (including that of one’s spouse) should be a minimum of Rs. 40,000 and must not exceed Rs. 1 Lakh.
- An applicant must not be a defaulter in payments in any financial institution.
Recently, the upper age cap for SC, ST, and women has been raised by 10 years making them eligible for the Pradhan Mantri Rozgar Yojana scheme even at 45. Alternatively, know how to use a loan against property to start your business venture. This would procure you a handsome sum of up to Rs. 3.5 Crore at the lowest interest rates.
You must furnish these following documents to apply for PMRY –
- Proof of D.O.B (date of birth) and caste certificate (if any)
- Pass certificate of Class 8th standard
- Copy of the project profile
- Income certificate issued by the Mandal Revenue Officer
- Proof of residence for 3 years
After arranging these documents, you can proceed with the application procedure.
Additional Read: How to Avail Loan for Unemployed?
Apply for PMRY Loan
Step 1: Go to the official website of Pradhan Mantri Rozgar Yojana.
Step 2: After downloading the application form, fill it with the correct details.
Step 3: Submit the duly filled application to the respective financial institution or NBFC which comes under the PMRY scheme.
Now, wait for the concerned authority to get in touch with you. With this information in hand, you can easily avail funds under PMRY and start a business or service venture of your own.