The Prime Minister’s Rozgar Yojana (PMRY) is designed to create self-employment opportunities that are sustainable to 1 million unemployed youth who are educated. The scheme provides funding assistance for economically viable activities that are inclusive of agricultural and allied activities (except direct agricultural operations such as crop raising, manure purchase, etc.
|Project Cost||Rs.1 lakh for business sector Rs.2 lakh for other sectors*|
|Subsidy||Limited to 15% of the project cost (up to a ceiling of Rs.7,500 per entrepreneur)|
|Margin Money||Banks can take margin money from the borrower in the range of 5% to 16.25% of the project cost**|
|Repayment Tenure||Between 3 years and 7 years|
|Training expenses||Within Rs.2,000 per case|
|Implementing Agency||Banks, District Industry Centres, and Directorates of Industries|
*If two or more eligible individuals are in a partnership project, the project cost can go up to Rs.10 lakh
** The total of the subsidy and margin money should be around 20% of the cost of the project
The eligibility conditions to be met in order to take a loan under the PMRY scheme are as follows:
The PMRY scheme provides preference to the weaker sections of the society including women. There is a 22.5% reservation for SC/ST candidates and 27% reservation for Other Backward Classes (OBC).
Once the unit starts commercial operations, the loan amount and interest should be repaid. The repayment schedule is determined by the lending institution and the borrower is informed about the same. The repayment tenure can be between 3 years and 7 years with an initial moratorium period. In the event of a default, the bank may seek the assistance of the revenue department or the police department to recover the outstanding dues.
For the industrial sector, the ceiling on training is Rs.1,000 per case. This includes a stipend of Rs.500 per case. Contingency funds shall be applicable at the rate of Rs.250 per case, sanctioned to the states and union territories.
The borrower should comply with some statutory formalities before a project grounding. These are as follows:
The DICs also set up single window systems through which all clearances can be obtained on behalf of the borrower. He/she can avail this service, if required.
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