A Government Loan Scheme for the Unemployed

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    You might have recently quit your job or could be between jobs wanting to start a little venture of your own. Do you enjoy the little joys of your small town and want to contribute towards it with your business idea instead of moving to a big city?

    Well, the Indian government has a loan scheme designed just for you. The Pradhan Mantri Rojgar Yojana (PMRPY) was designed for the young educated population of the country that is unemployed. Under this scheme, you don't need to worry about submitting your past payslips, evaluate your credit score and other tedious procedures you need to go through to get your loan approved.

    What is the Prime Minister's Rojgar Protsahan Yojana?

    What is the Prime Minister's Rojgar Protsahan Yojana?

    The objective of this loan scheme is to give subsidized finance assistance to the educated but unemployed youth of India for the sole purpose of starting a manufacturing, business, service or trade venture.

    Eligibility

    Eligibility

    • You should be between 18 to 35 years of age. Age relaxation of 10 years is applicable for women, SC/St, ex-servicemen and physically handicapped. For citizens of North-eastern states age bracket is 18 to 40 years.
    • You should be permenant resident of your area for at least 3 years.
    • You should have at least passed the 8th standard.
    • Candidates trained in government recognized trade institution for a minimum of 6 months will receive preference.
    • Total annual income of applicant along with spouse and parents should not exceed Rs 1 lakh.
    Not eligible if

    Not eligible if

    • You have been a defaulter in payments to any Nationalized bank or financial institution.
    • You have already seeked assistance from another government subsidy scheme.
    Activities covered under the scheme

    Activities covered under the scheme

    • All economically viable businesses are covered under this scheme.
    • Primary agriculture operations involving direct relation with production or raising of crops like manure are not part of this scheme. However, agriculture businesses and allied activities are included.

     

    Cost coverage

    Cost coverage

    The maximum amounts for various sectors are:

    • Business sectors: Rs.2 lakhs
    • Service sector: Rs.5 lakhs
    • Industry sector: Rs.5 lakhs
    • Partnerships- if two or more people are involved with the same business: Rs.10 lakhs.
    Collateral

    Collateral

    • For projects worth Rs 2 lakhs by single individuals from the business and service sector no collateral is required. Partners are exempt for Rs 2 lakhs each.
    • For Small Scale Industries (SSI), collateral is exempt for projects worth Rs 5 lakhs per person.
    Rate of Interest

    Rate of Interest

    Rate of interests change from time to time. Guidelines will be provided while applying for the loan.

    Subsidy

    Subsidy

    • Subsidy is applicable to 15% of project cost which is limited to Rs 12,500 per individual.
    • Subsidy for North-Eastern states, Himachal Pradesh, Uttaranchal and Jammu & Kashmir regions is limited to Rs.15,000.
    • Self-help Groups can avail subsidies up to Rs.15,000 per beneficiary, limited to Rs.1.25 lakhs per group.
    Tenure & Training

    Tenure & Training

    Tenure
    3 to 7 years.

    Training
    Training provided as a part of the scheme has to be undertaken. The expenses are born by District Industries Centers (DIC). The training will last 7 to 10 days for the business and service sector. It will be 15 to 20 days for the industrial sector.

    How can I apply for Prime Minister Rozgar Yojana?

    How can I apply for Prime Minister Rozgar Yojana?

    Contact the general manager of the DIC in your area of residence.

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