Pradhan Mantri Rozgar Protsahan Yojana (PMRPY)

Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) is a scheme launched by the Government of India in 1993 to provide self-employment opportunities to educated unemployed youth in India. The scheme offers subsidized loans for setting up micro-enterprises in the manufacturing, trading, and service sectors. Beneficiaries can also fund agricultural projects, barring direct agrarian operations.

PMRY aims to establish 700,000 micro-enterprises by introducing service and business ventures within 2.5 years. Small-scale Scale Industries (SSI) envision using local resources and technologies for productive purposes, targeting the local market at a micro-level. Therefore, no collateral is necessary for projects valued up to ₹1 lakh.

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Objectives of Pradhan Mantri Rozgar Yojana

Here are the main objectives of the Pradhan Mantri Rozgar Yojana (PMRY) scheme:

  • To generate employment opportunities for the educated unemployed youth by setting up small businesses and micro-enterprises.
  • To provide financial assistance and credit facilities to the target beneficiaries for starting their ventures.
  • To promote self-employment and entrepreneurship among educated unemployed individuals.
  • To support the economic development of the country by creating additional employment opportunities.

Key Features of the Pradhan Mantri Rozgar Yojana Scheme

Here are the key features of the PMRY scheme that you need to know:

Features Description
Project Coverage Business Sector: Up to ₹2 lakh
Service Sector & Industry Sector: Up to ₹5 lakh
Loan Repayment 3 to 7 years
Training 15-20 days for beneficiaries to set up their businesses
Implementing Authority Development Commissioner (SSI) under the Ministry of Small Scale, Rural and Agro Industries
State Level Implementation Commissioner/Director of Industries (except in 4 metros)

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Eligibility Criteria for Pradhan Mantri Rozgar Yojana

Here are the eligibility criteria to apply for the PMRY scheme:

  • Age: Between 18-35 years.
  • Educational Qualification: Completion of 8th standard.
  • Repayment Schedule: Between 3 to 7 years after an initial moratorium.
  • Family Income: The combined income of the beneficiary and their spouse, as well as the income of parents, should not exceed ₹40,000 per month.
  • Residence: Must be a permanent resident of the area for at least 3 years.
  • Defaulter: Should not have a history of defaulting to any nationalized financial institution/bank/cooperative bank.
  • Subsidy: Subsidy will be limited to 15% of the project cost, with a maximum of Rs. 7,500 per borrower.
  • Reservation: Weaker sections (SCs/STs), including women, will have a reservation of 22.5% for SC/ST and 27% for Other Backward Classes (OBCs).

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Documents Required For Pradhan Mantri Rozgar Yojana

Before you apply for the PMRY scheme, ensure to keep the following documents ready. These include:

  • Certificate of EDP training
  • Driving license
  • Copy of proposed project profile
  • Qualification, experience, and technical certificates
  • Proof of date of birth (SSC certificate or TC from school)
  • Proof of residence for three years (ration card or any other residency proof)
  • Income certificate issued by the Mandal Revenue Officer (MRO)
  • Caste certificate issued by the MRO if applicable

Steps to Apply For a Loan Under PMRPY Scheme

Here are the steps to apply for a loan under the PMRY scheme:

Step 1. Visit the official website of the PMRY scheme.

Step 2. Download the application form from the website.

Step 3. Fill in all the necessary details on the application form.

Step 4. Submit the completed application form to the respective banks participating in the PMRY scheme.

Step 5. The concerned banking institution will then contact you for further processing of your loan application.

Modifications in Pradhan Mantri Rozgar Yojana Scheme

There have been several important changes and new developments implemented for the PMRY scheme. These modifications are intended to expand accessibility and better support the target beneficiaries.

The following are the key points outlining the modifications to the PMRY program:

  • The upper age threshold increased by 10 years for women and Scheduled Castes/Tribes, beyond 35 years.
  • Educational qualifications for women lowered from 10th class to 8th class.
  • Maximum project cost enhanced from ₹1 lakh to ₹2 lakh.
  • The scheme covers agriculture and allied sectors, excluding direct agricultural activities.
  • Group financing eligibility increased to ₹5 lakh
  • The upper age limit scaled up to 40 years in 7 North Eastern States
  • The minimum applicant age is 18 years, max-age is:
    • 35 years for North-Eastern applicants
    • 40 years for general applicants
    • 45 years for ST/SC applicants
  • Applicant must have passed 8th standard
  • The subsidy is 15% of the project cost, up to ₹7,500

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Frequently Asked Questions

PMRY is a self-employment program launched by the Government of India to provide financial assistance and training to educated, unemployed youth to set up their micro-enterprises.

Individuals between the ages of 18-35 years, with an educational qualification of 8th pass or above are eligible for the PMRY scheme.

The key benefits include access to subsidized loans, training and skill development support, and mentorship to start and manage a micro-enterprise.

Yes, the government provides a subsidy of 15% of the project cost (up to a maximum of ₹7,500) for general category applicants and 25% (up to ₹10,000) for SC/ST applicants.

The repayment period for the subsidized loans under PMRY is 3-7 years, including the moratorium period.

Applicants can track the status of their PMRY applications through the online portal or by contacting the designated PMRY implementation agencies in their local area.

Women in rural and urban areas can avail of a loan amount of ₹2 lakhs for business and ₹5 lakhs for service under the PMRY scheme.

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