What Is Pradhan Mantri Rozgar Yojana (PMRY)

It has been a constant endeavour of the Government of India to create a meaningful livelihood for the unemployed youth of the country. Pradhan Mantri Rozgar Yojana (PMRY) was launched in 1993 to provide financial assistance to unemployed youth to set up their own business.

The Pradhan Mantri Rozgar Yojanais aimed at providing loans to the unemployed youth of the country so to set up viable business units in the micro and small enterprise sector. The funds availed through PMRY may be deployed to start businesses in the manufacturing or service sectors.

Salient features of Pradhan Mantri Rozgar Yojana

The salient features of Pradhan Mantri Rozgar Yojana are as under:

• The sole objective of the PMRY Scheme is to provide financial assistance to the unemployed youth of the country and help them to set up micro and small enterprises.
• The PMRY Scheme is available all over India.
• Anybody who is Class VIII pass is eligible to apply for PMRY Scheme.
• A candidate who has done a six-month certification program under any Government run training shall get a preference.
• Women entrepreneurs are given a preference.
• The PMRY Scheme provides 22.5% reservations for SC/ST and 27% for OBC candidates.
• The PMRY Scheme allows a 15% subsidy with a ceiling of Rs 7500/- per applicant.
• The margin money varies from 5% to 16.5% under the PMRY Scheme.
• An individual may get a collateral-free loan of up to Rs 1 lac.
• The loan repayment term varies from 36 months to 84 months.
• The PMRY Scheme may also provide you with a moratorium. The repayment cycle commences after the business operations start.
• A handholding of two to three weeks is provided taking you through the nuances of business.
• The Scheme is monitored by the Development Commissioner (Small Scale Industries). The department comes under the Ministry of Small Scale, Rural and Agro Industries.

Eligibility Criteria for PMRY Loans

The eligibility criteria for PMRY loans are as follows:

1. Age

For the general category, the candidate has to be between eighteen and thirty-five years.

For SC/ST/OBC and ex-servicemen, the upper age limit is forty-five years.

2. Qualification

• At least class VIII passed.
• Anybody who has done a Government run program of six months duration shall get a preference.

3. Existing Family Income:

• The upper limit of the annual family income is Rs 40000/-.
• At the time of loan disbursal, an affidavit on a non-judiciary stamp paper is to be submitted as a testimony to the declaration of the annual income.

4. Domicile

• The applicant for the loan has to be a permanent resident of the area for at least the last three years. The “area” is defined as the district of domicile.
• The above norms are relaxed for newly married women who apply for the PMRY Scheme.
• For Meghalaya, the norms for married men are as per married women in the rest of the country.
• The ration card is an acceptable proof of residence. In case a ration card is not there, a certificate from the District Magistrate may be accepted.

5. Other Criteria:

• Defaulters of other banks are not eligible for the loan under PMRY Scheme.
• In case the applicant has already been a beneficiary of the Scheme in the past, he or she is not eligible for another loan.

6. Special Relaxations based on Geographical Location:

Understanding the necessity, the Government has allowed certain relaxations in the North Eastern States, Jammu & Kashmir, Himachal Pradesh and Uttarakhand. The special terms are as under:

• The upper age limit for the general category applicants for PMRY is 40 years.
• Sectors like piggery, small tea plantations, fishery, horticulture, and poultry have been brought under the gambit of PMRY in the above locations.
• The other considerations for availing of the PMRY Scheme remain the same as in the rest of the country.

Documents required for PMRY Loan

The following are the documentary requirements to avail of the PMRY loan:

• A project report needs to be submitted clearly showing the viability of the proposed business. The project report needs to be submitted to the District Level Committee, once they are satisfied with the report the same gets forwarded to the bank for further process.
• Identity proof – Aadhar Card, PAN Card, Ration Card.
• Proof of residence for three years – ration card or a certificate from the Gram Panchayat Pradhan.
• Proof of qualification – educational and technical (if applicable).
• Document to prove date of birth – PAN Card, birth certificate etc.
• Entrepreneurship Development Programme Certificate.
• If required, a Caste Certificate needs to be furnished.

Apart from the ones stated above, banks may ask you for some additional documents for processing the application of the PMRY Scheme.

Sector Wise Limit for PMRY Loans:

Sector	Project Cost (Rs) Covered Under PMRY
Industrial Sector	Rs 5,00,000/-
Service Sector	Rs 5,00,000/-
Business Sector	Rs 2,00,000/-

How to Apply for PMRY Loan?

For availing of the PMRY Loan Yojana, apply online to save time and hassles. You are required to take the following steps to apply:

• Step 1 – You need to visit the official website for online application, the website address is https://pmrpy.gov.in/
• Step 2 – Access the PMRY application form
• Step 3 – Download the form
• Step 4 – Fill up the application form completely with all the required details
• Step 5 – The filled-up application form along with the documents need to be submitted to the designated bank as indicated on the website
• Step 6 – Once you have submitted the form and have complied with the documentary requirement the bank starts the loan approval process
• Step 7 – After the bank scrutiny of the submitted documents is satisfied, the loan gets disbursed into your account
• Step 8 – Banks have the right to call for any additional documents if they feel so

In Conclusion

The Government of India has the objective of empowering the educated unemployed youth of the country toward a meaningful livelihood. The PMRY Scheme is a step towards achieving this objective. As an incumbent candidate for the Scheme, you are within your rights to apply and start your venture. At the same time, it is advisable to repay the loan on time. Your timely repayment will ensure many other youths like you shall get the benefit of the Scheme as the Government is going to forward loans from the funds that are ploughed back.

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