• Prime Ministers Rozgar Yojana (PMRY)

    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.

    Similar to Prime Minister’s Rozgar Yojana we can opt personal loan

    Key Features of PMRY

    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**
    Collateral
    • No collateral for projects up to Rs.1 lakh
    • For partnership projects, there will be an exemption of up to Rs.1 lakh per individual participating in the project
    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

    Eligibility Criteria for PMRY

    The eligibility conditions to be met in order to take a loan under the PMRY scheme are as follows:

    • Age – The applicant should be between 18 and 35 years of age. There is a relaxation of 10 years for SC/ST candidates, women, ex-servicemen, and physically challenged individuals. For the seven North Eastern states, the upper limit for age has been relaxed to 40 years. Ex-servicemen, SC/ST applicants, and physically handicapped women from the North Eastern states will be eligible up to the age of 45 years.
    • Education – The applicant should have passed 8th standard. There will be some preferences given for individuals who have undergone training for any trade in a government-recognised institution for at least 6 months.
    • Family Income – The income of the individual’s family should not be above Rs.40,000 p.a. This includes the income of the individual and spouse or the income of parents.
    • Residence – The applicant should be a permanent resident of the area in which he/she currently resides. He/she should have been staying there for at least 3 years.
    • Loan Default – The applicant should not have been a loan defaulter in the past. He/she should not be linked to other subsidy-linked government schemes as well.

    Documents required

    Given below is the list of documents you will have to submit in order to avail this government loan scheme:

    • Proof of your date of birth such as your birth certificate, SSC certificate or TC from school where you studied.
    • Proof of residence for 3 years, ration card, or any other documents which provides a proof of your residency.
    • Income certificate issued by MRO (Mandal Revenue Officer).
    • Qualification, experience, and technical certificates.
    • Driving license.
    • EDP training certificate
    • A copy of the proposed project profile.

    How will the scheme be implemented

    • The DSCSSI fixes the target for the year starting from April to March. The body depending on the population, unemployment, backwardness of the area, etc decide the targets who will be closely monitored by the body.
    • The state targets are allocated by the state government to all District Industries Centres(DIC) of the district.
    • The banks along with the DICs will play an important role in the implementation of the loan scheme. The Chief General Manager, RPCD of Reserve Bank of India will also be kept in loop regarding the targets allocated by the state government to the respective DICs, so that the lenders can issue a fixed guidelines and funds to the lead banks of the states.
    • The next step will be to invite the people to apply for the PMRY loans. The application form will be available at the DIC, local banks, and with the local Industry Promotion Officers of the concerned areas. The application form will require the candidate to fill in their basic details.
    • A task force committee is constituted by The GM and the DIC which will conduct the interview of the candidates.
    • The next step will be to provide the necessary training to the selected candidates. It is the GM’s and the DIC’s responsibility to provide the selected candidates the necessary training and give them the necessary training materials, so that they can understand the technicalities required to run their own organisation. The training period is 15 to 20 working days for candidates setting up industry sector and 7 to 10 working days for business/service sector.
    • The selected candidates after completing the training will be monitored closely by the bodies who have provided the PMRY loan. The district will provide the information on sanctions, disbursements, training, grounding and recovery of loan sanctioned, and prescribe them on a monthly, quarterly, and on a yearly basis to the Commissioner of Industries, who will prepare the final report for the state government.

    How to Apply for a PMRY Loan

    • Once the project idea is finalised, the applicant is required to fill up a form and submit it by enclosing the relevant documents and photographs. This will have to be submitted at the District Industries Centre (DIC) or the bank from where the loan is sought.
    • All applications are reviewed, and the selected candidates are invited for an interview. The interviews are usually conducted at main places in all districts.
    • In case eligible candidates are unable to avail the benefits of the scheme due to lack of awareness, the procedures are explained in detail by the DICs or local banks.
    • It is possible to apply for a loan under PMRY at any time during the year. However, it is advisable to apply between the months of April and June.
    • There will be three PMRY interviews in a year in all districts. The Task Force Committee is responsible for conducting the interviews and selecting eligible applicants for the loan.

    Prime Ministers Rozgar Yojana (PMRY) FAQs

    1. Are there any reservations under PMRY?

      Ans: 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).

    2. How is a loan repaid under PMRY?

      Ans: 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.

    3. What are the steps to be followed after a candidate has been selected for the PMRY loan?

      Ans:

      • After the applicant receives a confirmation letter on selection and allotment of bank, he/she should discuss the proposed project with the bank.
      • Once he/she has complied with all the required formalities, the implementation of the project can begin.
      • The selected applicants will also be called for a training after which certificates will be awarded. These certificates will have to be produced at the bank to get the loan amount.
      • Following this, the banks and DICs help in grounding the project.
    4. What are the details of the training provided under Prime Minister’s Rozgar Yojana?

      Ans: 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.

    5. What are the formalities to be fulfilled before the grounding of the project?

      Ans: The borrower should comply with some statutory formalities before a project grounding. These are as follows:

      • Arrange for the margin money
      • Take permission from a local body such as the Municipality or the Panchayat for the start of the project
      • Arrange for the collateral security, if required
      • Get clearance from the Pollution Control Board
      • Get the sales tax registration
      • Register with the DIC as a tiny sector unit. This will help in availing the State Government incentives
      • Obtain other statutory clearances falling under the Labour Act, Factories Act, Central Excise, and Boilers Act, if applicable

      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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