Pradhan Mantri Rozgar Yojana (PMRY)

Understanding Pradhan Mantri Rozgar Yojana (PMRY)

Pradhan Mantri Rozgar Yojana (PMRY) was launched in 1993 to provide self-employment to India’s educated youth and women. This scheme offers subsidised financial assistance to set up self-employment ventures in the manufacturing, trading, and service sectors. Beneficiaries may also fund agricultural projects, barring direct agrarian operations.The PMRY empowers you to start your business, but what if you need additional funds to scale or invest in better resources? With a loan against property, you can unlock the value of your property to access up to Rs. 10.5 crore. Benefit from flexible repayment options and low-interest rates to grow your enterprise with ease. By using your property as collateral, you can unlock access to large funds of up to Rs. 10.50 crore—it is a smart way to manage your finances with ease! Get funds within 72 hours* of approval.

To know all about the PMRY scheme in detail, read on.

Features of PMRY

The Central Government sponsors the Pradhan Mantri Rozgar Yojana. It assists with projects with an overall cost of Rs. 2 lakh, if in the business sector, and Rs. 5 lakh if in the service or industry sectors.

• The scheme provides a subsidy of up to 15% of the project, subject to a ceiling of Rs. 7,500 per entrepreneur.
• Banks can ask the entrepreneur for 5%-16.25% of the project cost as margin money.
• The subsidy combined with the margin money may amount to 20% of the project costs.
• You can avail of a collateral-free loan of up to Rs. 1 lakh and in case of a partnership, the exemption is Rs. 1 lakh per participant.
• It has a repayment tenor ranging from 3 to 7 years. Also, the PMRY scheme offers a moratorium period, which allows you to earn from your venture before you start repaying over 3 to 7 years.
• You are provided training for a period of 15 to 20 days so that you can successfully set up your business venture.
• Development Commissioner (Small-Scale Industries), under the Ministry of Small Scale, Rural and Agro, Industries, handles the scheme directly.
• The state-level PMRY team monitors the progress of the scheme every quarter.

Project cost covered under PMRY scheme (Loan Amount)

The PMRY (Prime Minister's Rozgar Yojana) scheme provides financial assistance to unemployed individuals for setting up their own businesses. The loan amount under this scheme typically covers project costs, including machinery, equipment, working capital, and other expenses related to the business setup.

Eligibility Criteria for PMRY

To apply for this scheme, you need to be eligible under the following criteria:

• Age: You must be an educated applicant in the age bracket ranging from 18 to 35 years. However, if you belong to the SC/ ST category, are a woman, ex-serviceman, or are physically challenged, you enjoy a 10-year relaxation on the age limit. Likewise, for the seven North-Eastern states, the age cut-off is relaxed for up to 40 years, and SC/ ST, women, or physically challenged applicants, and ex-servicemen, the upper age limit is 45 years.
• Education: You should have passed the 8th standard, and preference will be given to individuals with at least 6 months of previous training in any trade in a Government-recognised approved institution.
• Income: Your annual income, including that of your spouse, must not exceed Rs. 40,000. Similarly, your parent’s income must not exceed this limit either.
• Residential status: You must be living permanently in your locality for at least 3 consecutive years.
• Borrower status: You must not have defaulted on a loan in the past or availed of assistance through another subsidy-linked government scheme.

Documents Required for PMRY

You need to submit the following documents while applying for PMRY:

• Proof of birth, such as birth certificate, SSC/ HSC mark sheet
• Proof of being a resident for at least 3 years, like ration card
• Certificate of income, issued by the Mandal Revenue Officer
• Entrepreneurship Development Programme certificate
• Driving license
• Technical and educational certificates
• A copy of your project proposal

Implementation of PMRY Scheme

• The Development Commissioner for Small Scale Industries (DSCSSI), after reviewing factors like the population, rate of unemployment, and economic strength of an area, decides a target for April to March.
• For states, the target is decided by the state government and relayed to the District Industries Centre (DIC).
• PMRY application forms will be available at local banks, DIC offices, and with local Industry Promotion Officers.
• The selected candidates will be provided with the necessary training to ensure that they can successfully set up their venture. The duration of the training is 15 to 20 days for candidates with ventures in the manufacturing sector. Whereas it takes about 7 to 10 days to train for applicants with ventures in the service or business sector.
• Once a candidate completes training, his/ her progress will be monitored by the bodies that will grant the loan under the PMRY scheme.

Modifications in PMRY Scheme

Over the years, the following modifications have been made to the scheme

• If you are an SC/ ST applicant or a woman, you get a relaxation of 10 years on the age limit, 35 years.
• The education qualification has been reduced to standard 8 from standard 10.
• The upper limit of the project cost has been increased to Rs. 2 lakh.
• The scheme now includes agriculture and its associated activities but excludes direct agricultural operations like the purchase of manure or raising of crops.
• If you apply as a group of eligible candidates, you can avail of up to Rs. 5 lakh.
• The age limit has been raised to 40 years for candidates from the North Eastern states.

How to apply for a PMRY loan

• Once the project idea is finalised, the applicant must complete an application form and submit it along with the necessary documents and photographs.
• This submission should be made at the District Industries Centre (DIC) or the bank from which the loan is requested.
• All applications are reviewed, and shortlisted candidates are called for an interview, typically held at central locations across districts.
• If eligible candidates face difficulties in accessing the scheme due to a lack of awareness, the DICs or local banks will provide detailed guidance on the process.
• While applications can be submitted throughout the year, it is recommended to apply between April and June.
• Three PMRY interviews are conducted annually in each district, with the Task Force Committee overseeing the interviews and selecting eligible applicants for the loan.

Additionally, when submitting the form at a bank or DIC, you must submit a project idea report. This project profile should include details about raw materials, fixed assets, employee wages, expenditure, production cost, profitability and so on. After your application is scrutinised, you will be called for an interview. You can get up to Rs. 5 crore if you have a good credit score at low loan against property interest rate.

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