Pradhan Mantri Rozgar Yojana is an initiative of the Indian government to create and provide sustainable employment opportunities to unemployed youth and women citizens. The main objective of this scheme is to employ more than 10 lakh youth by setting up micro-enterprises.
Under this scheme, educated youth who are unemployed can avail financial assistance to build a start-up in sectors like manufacturing, service or trade. Like any other government-backed funding scheme, the scheme (abbreviated PMRY) also accompanies a few features and specific requirements.
Pradhan Mantri Rozgar Yojana Subsidy
PMRY is a central government-sponsored scheme that accompanies a repayment tenure ranging from 3 to 7 years. To ensure that the applicants set-up their venture and run it successfully, they are offered training under this scheme.
Under the prime minister rozgar yojana, eligible candidates can avail substantial financial aid to start their business venture. Typically, the subsidy offered under this scheme is limited to 15% of the venture’s cost. Also, one entrepreneur can avail up to Rs.12,500 as subsidy under this programme.
However, for Himachal Pradesh, Jammu & Kashmir, Uttaranchal and North-East regions, the subsidy limit goes up to Rs.15,000. Likewise, self-help groups can avail up to Rs.1.25 lakh as subsidy. Nevertheless, to become a beneficiary, an individual needs to meet a few stringent criteria and fulfil some requirements.
Eligibility criteria for benefits under the scheme
Individuals who meet these following criteria can qualify for benefits under the Pradhan Mantri Rozgar Yojana –
- All educated but unemployed youth.
- Individuals residing in a specific district for at least 3 years.
- Applicants between the age of 18 and 35 years.
- Applicants must have passed the 8th standard.
- The accumulated income of the family should not exceed Rs.40,000.
- Applicants who have not availed a loan or are defaulters under a nationalized financial institution.
One must note that individuals who belong to the SC/ST category, women, ex-servicemen, and physically challenged individuals can apply for this scheme up to the age of 40 years.
To back up their eligibility under this scheme, applicants need to submit these following –
- Aadhaar card.
- Proposed project report.
- Education qualification certificate, quantum letter or 8th pass certificate.
- EDP training certificate.
- Passport size photographs.
- Proof of income and address.
- Income certificate and caste certificate issued by the Mandal Revenue Officer.
One must note that this scheme covers project cost of up to Rs.2 lakh for business sector-based initiatives, while for the industry sector it is Rs.5 lakh.
Steps to apply for benefits under the scheme
By following these steps, one can easily apply for benefits under the Prime Minister Rozgar Yojana –
Step 1 – Go to Prime Minister Rozgar Yojana’s official website.
Step 2 – Navigate to the application page.
Step 3 – Download its application form.
Step 4 – Provide the required details and crosscheck them.
Step 5 – Submit the filled-up form to a designated financial institution listed under this scheme.
Step 6 – Proceed to submit all your documents.
Notably, individuals need to meet several requirements to avail benefits under the Pradhan Mantri Rozgar Yojana. This makes it challenging for many individuals to avail the much-needed financial assistance and training to start a venture in the micro-enterprise sector.
As an alternative to the financing aspect, they can thus apply for credit options like a loan against property (LAP). It is a secured financial product that can be availed at competitive rates of interest with zero restrictions on end-use. To make the most of this credit option, individuals need to find out a few things before applying for a loan against property.
For instance, features like loan amount, repayment tenure, rate of interest, charges of the LAP, and additional benefits like top-up loans and pre-approved offers, make these advances borrower-friendly.
Typically, financial institutions offer pre-approved offers to customers to facilitate smooth borrowing experience in minimum time. These offers are available on several financial products, including loans against property and home loans. Check your pre-approved offer online by sharing details like name and contact number.
Lastly, the Pradhan Mantri Rozgar Yojana selection process involves numerous steps as well and requires applicants to clear an interview. Furthermore, sanctioning financial institutions hold the right to approve or reject the loan application submitted under this scheme. One should find out about these aspects in detail to account for the overall application process more effectively.