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.
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 up to Rs.1 lakh per person participating in the project.
|Age||For all educated unemployed people between 18-40 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.
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- 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
- 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
*Project upto Rs.10 lakhs are covered, If 2 or more eligible applicants join together in a partnership.
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Latest Business Loan Interest Rates – January 2023
|Axis Bank||14.95% - 19.20% p.a.||Apply Now|
|Bajaj Finserv||9.75% - 25% p.a.||Apply Now|
|Flexiloans||1% per month onwards||Apply Now|
|HDB Financial Services Ltd.||Up to 36% p.a.||Apply Now|
|HDFC Bank||10% - 22.50% p.a.||Apply Now|
|IDFC First Bank||15% p.a. onwards||Apply Now|
|Indifi||1.50% per month onwards||Apply Now|
|Kotak Mahindra Bank||16% - 19.99% p.a.||Apply Now|
|Lendingkart||1% - 2% per month||Apply Now|
|Mcapital||2% per month onwards||Apply Now|
|NeoGrowth Finance||19% - 24% p.a.||Apply Now|
|Tata Capital||12% p.a. onwards||Apply Now|
|UGRO Capital||14.90% p.a.||Apply Now|
Note: Business loan interest rates are updated as on January 2023.
Steps to apply for loan under Pradhan Mantri Rozgar Yojana
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.
Copies of the following documents are required to apply for Pradhan Mantri Rozgar Yojana (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
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Modifications in the PMRY Scheme
- The upper age limit has been raised by 10 years beyond 40 years for SCs/STs and women
- 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
- The upper age limit increased up to 50 years in seven North Eastern States of India
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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 40 years; in case the applicant is from North-eastern States then the maximum age is 40 years and for people falling in SC/ST category then it is 50 years.
Q. What is the minimum qualification required to enroll under PMRY?
Ans. The applicant should have studied and passed VIII standard to be eligible.
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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