As part of a developing country, all enterprises that operate within India’s boundaries have a critical role to play. In fact, micro and small-scale enterprises have proven to be especially vital to economic growth. They are considered the backbone of the economy, which is fitting as there are over 63 million MSMEs in operation within the country, according to data from Statista.
Unfortunately, even with their large number, the problem of unemployment still plagues the country. Youth with formal and informal education or training are crippled by this and fail to contribute to the nation’s economic development. As a solution, the central government launched Prime Minister Rozgar Yojana to offer financial assistance to youth seeking to make the most of opportunities for self-employment.
To know about the PMRY scheme in detail and learn all about its key features, eligibility terms, and how you can apply for it, read on.
What is Prime Minister Rozgar Yojana?
Initially launched in 1993, Prime Minister Rozgar Yojana is an initiative that serves to provide eligible youth with sustainable self-employment opportunities. Since its launch, and over the years, the main aim of the initiative, which is to reach out to the educated and unemployed youth and women of India by offering subsidised finance and setting up lakhs of micro- enterprises, has remained steadfast. Assistance is provided to all looking to establish their business in manufacturing, service, and trade sectors. However, financial assistance isn’t available for ventures pertaining to direct agricultural operations such as manure purchase, and crop raising.
What are the features of PMRY?
There are 7 key features of the PMRY scheme. They are as follows:
- Collateral: Projects up to Rs.1 lakh do not require collateral. Partnership projects will get an exemption of Rs.1 lakh per individual
- Project cost: Individuals can get Rs.1 lakh for business sector projects and Rs.2 lakh for others. Partnerships with 2 or more eligible persons can get up to Rs.10 lakh
- Subsidy: Individuals get a subsidy of up to 15% of the project cost or up to Rs.7,500 per entrepreneur involved
- Tenure : Individuals have to repay between 3 and 7 years
- Training expense: Expenses covered will be up to Rs.2,000 per case
- Implementing agency: District industry centres, Directorate of Industries and banks
- Margin money: Margin between the range of 5% and 16.25% of the project cost may be taken by the bank. Here the total of the margin money and subsidy should be about 20% of the total cost of the project.
What are the eligibility terms for the PMRY scheme?
To qualify for Prime Minister Rozgar Yojana, these are the terms to keep in mind:
- Applicants should be aged between 18 and 35 years
- Applicants must have completed class 8
- Applicants family income should not exceed Rs.40,000 per year
- Applicants must possess a permanent residence in the area they are applying in, which implies them having lived there for at least 3 years
- Applicants must have no prior loan defaults
- Applicants must not be benefitting from other subsidy-linked government schemes
Do note that there is a relaxation on the age limit for certain groups of people. For North Eastern states the age limit is 40 years. Whereas for SC/ ST persons, ex-servicemen, physically handicapped women from North Eastern states have a 10-year relaxation and the age limit for them is 45 years.
What documents do you need to avail PMRY?
To successfully apply and avail PMRY assistance, these are the documents you will require.
- Project report
- EDP training certificate
- Driving license
- Proof of residence
- Proof of birth
- Income certificate
- Technical or experience certificates
What are the steps to apply for Prime Minister Rozgar Yojana?
Applying for the PMRY scheme requires prior work. Here are the steps involved.
- Finalise the project report
- Fill the application form and submit it to a District Industries Centre (DIC) or bank
- Await review and confirmation for an interview
- Attend the interview
With the backing of Prime Minister Rozgar Yojana, those with entrepreneurship aspirations have a means to make their dreams a reality. The funding and backing from government bodies is crucial to this process as it lays a sturdy foundation in the initial phases. Alternatively, options like a mortgage or LAP loan are things you can rely on as well. These will require you to pledge your home or any other real estate as collateral but will offer a higher amount as funding alongside special loan perks too, depending on the lender.