loan against property

Launched in 1993, Pradhan Mantri Rozgar Yojana (PMRY) is a government-backed scheme that is aimed at offering self-employment to educated women and youth in India. Under the Ministry of Small Scale, Rural, and Agro Industries, the Development Commissioner is this scheme’s regulatory body.

Under the Pradhan Mantri Rozgar Yojana scheme, eligible candidates can opt for financial assistance for setting up a start-up or a trade or manufacturing business. Hence given the importance of this scheme, it is imperative to be aware of its various features.

What are the features of the PMRY scheme?

Illustrated below are several features of the Pradhan Mantri Rozgar Yojana scheme:

  1. Zero collateral

This scheme provides an eligible candidate with a loan amounting to a maximum of Rs.1 lakh without any collateral. 

  1. Extended tenor

Beneficiaries can opt for a long Pradhan Mantri Rozgar Yojana loan repayment tenor that ranges from 3 years to 7 years.

  1. Training facility

Under the PMRY scheme, individuals are entitled to receive 15 to 20 days of training. This training majorly aims to provide education regarding the basics of making sound investments and setting up a business.

  1. Sizeable subsidy

The PMRY scheme also provides a subsidy to qualified individuals. These individuals can receive 16% of the cost of the concerned project as a subsidy. However, the upper limit of a project’s cost is set at Rs.12500 for every individual.

  1. EMI facility

Beneficiaries can acquire a Pradhan Mantri Rozgar Yojana loan in the form of EMIs. They can opt to repay the sanctioned loan in monthly instalments.

  1. Implementation

PMRY is implemented at the state level through the help of Directories of Industries, District Industry Centres and financial institutions.

Besides the features of this scheme, beneficiaries must keep in mind other vital aspects like the eligibility requirements.

Eligibility requirements for Pradhan Mantri Rozgar Yojana scheme

For becoming a beneficiary of this scheme, individuals must fulfil the eligibility criteria. These are listed down as follows:

  • The age of the individuals must be between 18 years and 35 years.
  • Applicants must have at least passed the 8th standard. Those who had received training for the field of trade from a government recognised institution would be more preferred among other applicants.
  • The annual family income must not exceed Rs.40,000. This is inclusive of the income of parents and spouse.
  • Applicants must be permanent residents of the given region. Additionally, they should have stayed in the area for at least 3 years.
  • Individuals should not be a beneficiary of any other subsidy programmes that are backed by the government.
  • Applicants should not have any default history.

One must note that ex-servicemen, women, physically challenged individuals, and SC/ST candidates can enjoy a relaxation of 10 years in the age criteria. Moreover, the upper age limit for individuals residing in the North Eastern States is set at 40 years. On the other hand, physically handicapped, ex-servicemen, women, and SC/ST applicants are considered eligible for up to 45 years.

Apart from eligibility criteria, individuals must note the various documents required to be submitted for opting for this government-backed scheme.

Documents necessary for PMRY

Submit the below-mentioned documents if you are opting for this scheme:

  • Proof of residence – Aadhaar card, passport, ration card, etc.
  • EDP training certificate
  • A copy of the proposed project
  • Proof of date of birth – TC from school, SSC certificate, birth certificate, etc.
  • Driving license
  • Technical certificate, qualification certificate, etc.

Applicants must sort out these documents and keep them ready prior to opting for this scheme. Besides this, they should find out the online application procedure of this scheme for unemployed youths beforehand so as to apply in a hassle-free manner.

Furthermore, individuals must submit a report consisting of the project idea while submitting the form at a DIC or a financial institution. The project profile must contain details regarding fixed assets, raw materials, employee wages, production cost, expenditure, profitability, etc. Applicants are called for an interview after their application is scrutinised.

However, individuals who are looking for a more substantial funding, can resort to a loan against a property scheme. Choosing a reputed financial institution will allow them to enjoy multiple benefits. 

These include enjoying pre-approved offers that help to make a lending process quick and hassle-free. These offers are provided on several financial products like home loans and more. Potential loan against property applicants can check their pre-approved offer by providing a few details, such as their name and contact number.

Therefore, in addition to the features of the PMRY scheme, individuals must keep in mind the eligibility criteria and the documents required to avail the benefits of the Government scheme.


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