This scheme was launched by Central Government in 1993 to help those who were unemployed to find opportunities of self-employment. The scheme targets the youth and women by giving them a financial boost to help get them into the employment sector. The implementation of this scheme is carried out by the District Industries Centres (DIC) and the Directorates of Industries as well as the banks.
Under this scheme, all activities that are economically viable are covered. Agriculture and allied activities are also covered except for direct agricultural operations that include purchase of manure and raising crops.
Based on the quantum of the loan, the rate of interest will be applicable as per the guidelines stipulated by the government. The rates of interest offered are subject to change from time to time.
Subsidies offered under this scheme are limited to 15% of the project cost. This is further limited to Rs.12,500 per entrepreneur. For the North-Eastern Regions, Himachal Pradesh, Uttaranchal and Jammu & Kashmir regions, the limit is extended to Rs.15,000. Self-help Groups can also avail subsidies of up to Rs.15,000 per beneficiary. This is limited to Rs.1.25 lakhs per SHG.
The Margin Money ranges between 5% to 16.25% of the cost of the project. The total of subsidy plus margin money should be equal to 20% of the project cost.
The tenures on these loans range between 3 years to 7 years.
There is a moratorium period granted under these loans as prescribed by the scheme that allows the borrower to set up his business and start earning money before the repayment schedule begins.
As part of the scheme, training is offered to borrowers to ensure that they are able to set up their business or carry out their employment strategy. Expenses are borne by the DIC. For the service and business sector, training lasts between 7 to 10 days. For the industry sector, training is provided for 15 to 20 days.
To apply for a loan under the PMRY, interested applicants can approach the General Manager of the District Industries Center of the respective district in which they reside.
The Prime Minister’s Rozgar Yojana was set up to provide assistance to the less educated and poor individuals who are unemployed in the country. With financial aid, the scheme is designed to help set up micro level self-employment ventures in both urban and rural areas.