Pradhan Mantri Rozgar Yojana (PMRY) is a scheme launched by the Central Government to provide 10 lakh educated unemployed women and youngsters with sustainable self-employment opportunities. The plan was initiated in 1993. It offered financial assistance of up to INR 10 lakh to help small and medium-sized enterprises (SMEs) start their ventures in the trading, services, and manufacturing sectors.
The primary governing body is the Development Commissioner (small-scale industries) under the Ministry of Small-Scale, Rural, and Agro Industries. The implementing agencies are the metropolitan cities across India. The progress of the scheme’s implementation is reviewed quarterly by the State-Level PMRY Committee.
Features of PMRY
- Project cost covered under this scheme is:
- Businesses: INR 2 lakhs
- Services: INR 5 lakhs
- Industrial: INR 5 lakhs
- The repayment tenure is three to seven years after the moratorium is completed.
- A training period of 15 to 20 days is available to ensure beneficiaries can set up their ventures.
- The SME loan is repayable in easily equated monthly installments (EMIs).
- It is available for all economically viable ventures, including agriculture and allied activities; however, direct agriculture activities are excluded from the scheme.
- A 15% subsidy on the project cost capped at a maximum of INR 7,500 is available for each individual; the contribution increases to INR 15,000 for Northeastern states, Jammu & Kashmir, Uttaranchal, and Himachal Pradesh applicants.
- The loan is collateral-free if the project cost is INR 1 lakh.
Eligibility criteria
The SME loan eligibility norms under PMRY are as follows:
- All educated individuals are between 18 and 35 years; the upper age limit is 40 years for applicants from the seven Northeastern states.
- The minimum educational qualification requirement is eighth-grade passed individuals.
- Applicants must reside in their current locations for at least three years.
- Monthly family income, including spouse and parents, should be less than INR 40,000.
- Beneficiaries should not have defaulted on any loans from nationalized financial institutions.
- Margin money may be between 5% and 12.5% of the total project cost.
- Group financial assistance eligibility is up to INR 5 lakhs.
- Affordable SME loan interest rates are charged.
Documents required
- Duly filled application form along with passport-sized photos
- Driver’s license
- Income certificate issued by Mandal Revenue Officer (MRO)
- Proposed project report copy
- Experience, qualification, and technical certificates
- Date of birth and residence proof
- Caste certificate issued by MRO when applicable
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