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.
