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 and 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
- Repayment tenure between three and seven years after completing the moratorium period.
- A training period of 15 to 20 days is available to ensure beneficiaries can set up their ventures.
- The SME loan is repayable in easy 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 North-Eastern 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 aged between 18 and 35 years; the upper age limit is 40 years for applicants from the seven North-Eastern 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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