PMRY: Government Sponsored Scheme

The Pradhan Mantri Rozgar Yojana (PMRY) is a Central government-sponsored scheme that helps educated unemployed people start self-employment ventures through business routes and industry services. The scheme has been in operation since October 2, 1993.

Features of the PMRY scheme:

Eligibility Criteria:

  1. 8TH CLASS PASS

  2. Age group between 18-40 years as of the date of filing of the application. (Relaxation up to 10 years in the case of women, SC-ST, PH, and ex-servicemen)

  3. Family income should be below Rs.40,000 pa.

  4. Must be the resident of the address indicated in the application for the last 3 years*.

   (*This condition is relaxed for married men in Meghalaya and married women in the rest of the country).

5. Should not be a defaulter to any bank/ financial institution/Co-operative bank.)

 Further, a person already assisted under other subsidy-linked Government schemes would not be eligible under this scheme.

Activities Covered:

All economically viable activities including agriculture and allied activities but excluding direct agricultural operations like raising crops, purchase of manure, etc.

An illustrative list and activities are available at DICs.

Reservations:

The scheme reserves 22.5% for SC/ST and 27% for Other Backward Class (OBCs). Preference is given to women and weaker sections.

Project Cost:

The project cost for the business sector is Rs. 1.00 lakh. For other activities (loan is to be composite) Rs. 2.00 lakhs. If two or more eligible persons join together in a partnership, projects up to Rs. 10.00 lakhs are covered. Assistance shall be limited to individual admissibility.

Self Help Groups can be considered for Assistance under the Scheme provided (i) the members of the Self Help Group individually satisfy the eligibility criteria laid down under the scheme. (ii) Membership of the group would not exceed 10 numbers.

The maximum loan limit for a Self-Help Group is Rs. 10.00 lakhs (iii) Assistance will be limited to individual eligibility under the Scheme.

Interest:

The normal rate of interest shall be charged. The repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed.

Subsidy:

The subsidy is limited to 15% of the margin money project cost, with a ceiling of Rs. 7,500 per entrepreneur.

Margin:

Banks will be allowed to take margin money from the entrepreneur varying from 5% to 16.25% of the project cost to make the total of the subsidy and the margin money equal to 20% of the project cost.

Collateral:

No collateral for units in the industry sector with project cost up to Rs. 2.00 lakhs (the loan ceiling under the PMRY). For partnership projects under the Industry sector, the exemption limit for obtaining of collateral security will be Rs. 5.00 lakhs per borrower account. For units in the service and business sector no collateral for projects up to Rs. 1.00 lakhs. Exemption from collateral in case of a partnership project will also be limited to an account of Rs. 1.00 lakh per person participating in the project.

Training

Selected applicants are called for training. After completing the training, they receive certificates that they need to present to the bank to get the loan sanctioned.

Each entrepreneur whose loan is sanctioned is provided training as per the details given below:

(i) For Industry sector: Duration 15 working days, Stipend: Rs. 300/-,. Training Expenditure: Rs. 700/- per beneficiary.

(ii) For Service & business Sector: Duration 10 working days,. Stipend: Rs. 150/-Training Expenditure: Rs. 350/- per beneficiary

Where to apply?

Applicants for PMRY facilities shall submit the application form to the District Industries Centre (DIC) either online or offline.

To apply for a loan under the PMRY scheme, follow these steps: Step 1: Visit the official website at https://dcmsme.gov.in/publications/forms/pmryform.html. Step 2: Fill in the application form with the required details. Step 3: Submit the form to the local DIC or PMRY-registered bank.

Documents required:

To apply for the PMRY scheme, you need to submit the following documents in duplicate along with attested copies:

1. Proof of Date of Birth (SSC certificate or TC from school where studied)
2. Certificate of Qualification academic and technical
3. Ration card or any other proof of residency for 3 years, ie residential certificate issued by MRO
4. Experience certificate, if applicable.
5. Income certificate issued by MRO of concerned Mandal
6. Caste certificate issued by MRO if applicable
7. Driving License in case of the candidates applying for motor vehicles.
8. A copy of the Proposed Project Profile.

Implementing agencies

The District Industry Centers and the Directorate of Industries are primarily responsible for implementing the scheme, along with banks.