Pradhan Mantri Rozgar Yojana

The Government of India launched Pradhan Mantri Rozgar Yojana (PMRY) in 1993 to provide self-employment opportunities to educated unemployed youth. Through the scheme, the government promotes entrepreneurship among youth by offering financial assistance to individuals who wish to start their own ventures.

In addition to the financial support, necessary training is offered to help young entrepreneurs manage their ventures.

Some of the key features of the scheme are as follows:

• You can get composite loans of up to ₹1 Lakh for projects in the business sector and ₹2 lakhs for other activities. In case of a joint application (2 or more eligible profiles), it can go up to ₹10 lakhs 

• 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 regular bank rates

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

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

• Education Proof

• 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

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

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

• Step 1: Visit the official website at https://dcmsme.gov.in/publications/forms/pmryform.html

• 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.

You can also click on “Online Application” and follow the instructions to apply for the PMRY scheme.

The bank expects you to start the repayment process once the business unit begins commercial production. Banks usually set the repayment schedule, which ranges between 3-7 years. 

It is important to remember that the loan, including interest, must be repaid on time. In case of default, the bank, along with the District Industries Centre (DIC), can recover the outstanding amount with the help of the Revenue and Police Departments. Efforts are also being made to include this loan under the Revenue Recovery Act, similar to the CMEY program. Therefore, you should make timely repayments to avoid issues.