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Pradhan Mantri Rozgar Yojana (PMRY) is initiated by the Central Government of India to provide sustainable self-employment opportunities to 10 lakh educated unemployed youth and women in India. Launched in 1993, PMRY initiated this cause by offering financial assistance in starting one’s own enterprise in the trade, manufacturing, and services sectors, as it helps in setting up of Micro Enterprises and offering employment to educated unemployed youth.
Table of Contents :
Eligibility Criteria
PMRY aims in setting up 7 lakh micro-enterprises through inducting service and business ventures over a period of 2 years and 6 months. Small Scale Industries (SSI) uses its vision to utilize local resources, and technologies for productive purposes and exploit the local market at the micro-level.
Collateral: No collateral is required for projects up to Rs.1 lakh. In the case of a partnership project, exemption from collateral will be limited to up to Rs.1 lakh per person participating in the project.
| Eligibility Criteria | |
| Age | For all educated unemployed people between 18-35 years* |
| Educational Qualification | 8th standard – Passed |
| Interest Rate | Normal interest rate shall be charged |
| Repayment Schedule | Between 3 to 7 years after an initial moratorium |
| Family Income | Income of the beneficiary along with spouse nor the income of parents shall exceed Rs. 40,000/month |
| Residence | Permanent resident of the area for at least 3 years |
| Defaulter | Should not be a defaulter to any nationalized financial institution/bank / cooperative bank |
| Subsidy | Subsidy will be limited to 15% of the project cost subject to a ceiling of Rs. 7,500 per borrower |
| Reservation | Weaker sections (SCs/STs), including women (22.5% reservation for SC/ST and 27% for other Backward class (OBCs)) |
Note: 10 years relaxation for SC/STs, ex-servicemen, physically handicapped, and women that is up to 45 years.
Features:
- Project Cost Covered under PMRY Scheme (Loan Amount)
Sector Project Cost* Business Sector Rs. 1 lakh Other Activities Rs. 2 lakh - PMRY is a centrally sponsored scheme with repayment tenure from 3 years to 7 years
- Training provided to borrowers for 15-20 days to ensure the setting up of their businesses
- The primary body of this scheme is the Development Commissioner (Small-Scale Industries) under the Ministry of Small-Scale, Rural, and Agro Industries
- The Commissioner/Director of Industries implements the scheme at the State level except for the four metropolitan cities of the country
- Every quarter, State Level PMRY Committee monitors the progress of the scheme
- Implementing agencies of this scheme are the metropolitan cities of the country
- To expand their coverage areas of small tea gardens, fishing, poultry, piggery, and horticulture
- Easy Equated Monthly Instalments (EMIs) for borrower’s business initialization
*Projects up to Rs.10 lakhs are covered If 2 or more eligible applicants join together in a partnership.
Latest Business Loan Interest Rates
| Bank/NBFCs | Interest Rate |
| Axis Bank | 10.75% p.a. onwards |
| Flexiloans | 1% per month onwards |
| HDB Financial Services Ltd. | 8% - 26% p.a. |
| HDFC Bank | 10.75% - 25% p.a. |
| IDFC First Bank | 10.50% p.a. onwards |
| Indifi | 1.50% per month onwards |
| Kotak Mahindra Bank | 16% - 26% p.a. |
| Lendingkart | 12% - 27% p.a. |
| Mcapital | 2% per month onwards |
| NeoGrowth Finance | 15% - 40% p.a. |
| Tata Capital | 12% p.a. onwards |
| UGRO Capital | 9% - 36% p.a. |
| Bajaj Finserv | 10% to 26% |
Steps to Apply for funds under PMRY
Please follow the steps below for a successful registration process and loan apply under Pradhan Mantri Rozgar Yojana online:
Step 1: Visit the official website of Prime Minister’s Rozgar Yojana https://pmrpy.gov.in/
Step 2: Download the application form and fill it in with complete details.
Step 3: Submit the duly filled form to the respective bank that comes under the PMRY scheme and then the concerned bank will get in touch with you.
Documents Required
Copies of the following documents are required to apply for PMRY:
- Duly filled application form with passport-sized photographs
- EDP Training certificate
- Copy of the Proposed Project Profile
- Experience, qualification, and technical certificates
- Proof of Date of Birth (SSC certificate or TC from school were studied)
- Residence proof for 3 years, ration card, or any other proof of residency
- Income certificate issued by MRO (Mandal Revenue Officer)
- Caste certificate issued by MRO, if applicable
- Driving License
- Any other document required by the lender
Modifications in the PMRY Scheme
- The upper age limit has been raised by 10 years up to 45 years from 35 years for people falling in SCs/STs, women, ex-servicemen, and physically challenged people
- Educational qualifications for eligibility under the scheme have been reduced to 8th class from 10th class
- The scheme will cover agriculture and allied activities and exclude direct agricultural operations, such as manure and its purchase, raising crops, etc.
- Group financing eligibility up to Rs. 5 lakh
FAQs
Q. What is the age criteria to enroll for PMRY?
Ans. The minimum age of the applicant should be 18 years and the maximum of 35 years; and in the case of SC/ST candidates, women, ex-servicemen, and physically challenged individuals the maximum age criteria is up to 45 years.
Q. What is the minimum qualification required to enroll under PMRY?
Ans. The applicant should have studied and passed VIII standard/ 8th class to be eligible as per the sole discretion of PMRY.
Q. Is there any requirement for collateral to be submitted?
Ans. There is no requirement of collateral for projects up to Rs. 1 lakh.
Q. What is the subsidy offered under PMRY?
Ans. The subsidy offered under PMRY is 15% of the project cost, a maximum of Rs. 7500.
Q. Are there any income criteria to meet before enrolling for PMRY?
Ans. The annual family income shall not exceed Rs. 40,000 to get enrolled under PMRY.
Q. What is the repayment schedule offered under PMRY?
Ans. The repayment schedule to be followed by the applicant should be between 3 to 7 years after the initial moratorium period.
Q. For how long is the training provided to the borrowers?
Ans. The training is provided for 15-20 days to ensure that their businesses get settled and started.
Q. What is the maximum time duration that I need to reside permanently before applying?
Ans. You need to have stayed for at least 3 years at the same location to be eligible for PMRY.
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