The Indian government has designed a new loan scheme for the unemployed. The Pradhan Mantri Rojgar Yojana (PMRPY)is designed for the young educated population of the country that is unemployed. Under this scheme, 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. To be part of this scheme, Contact the general manager of the DIC in your area of residence.
- Applicant 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.
- Applicant should be permenant resident of your area for at least 3 years.
- Applicant 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
- Applicant have been a defaulter in payments to any Nationalized bank or financial institution.
- Applicant have already seeked assistance from another government subsidy 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.
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.
- 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 interests change from time to time. Guidelines will be provided while applying for the loan.
- 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
3 to 7 years.
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.