The Pradhan Mantri Rozgar Yojana (PMRY) was first launched in 1993 by the Government of India. The objective behind this initiative was to extend opportunities for self-employment to India’s youth. PM Rozgar Yojana primarily focuses on educated unemployed individuals who can work and contribute to the country’s economy. More individuals taking up self-employment also implies more employment generation.
Prime Minister Rozgar Yojana is a loan scheme that can be availed by educated youth looking to start a business. Beneficiaries can avail collateral-free affordable loans of up to Rs.1 lakh.
Features of the Pradhan Mantri Rozgar Yojana
This scheme comes under the authority of the Development Commissioner of the Indian Government and is implemented at the State level by the Directorate/Commissioner of Industries. Under this scheme, the project cost coverage has been specified as per the nature of the start-up.
- Rs.2 lakh for the business sector
- Rs.5 lakh for the service sector
- Rs.15 lakh for the industry sector
The repayment tenor of Prime Minister Rozgar Yojana loans ranges from 3 to 7 years from the moratorium period. Thus, it has a specified repayment and moratorium phase, unlike Padho Pardesh education loans, in which these aspects depend on the course structure.
Prime Minister Rozgar Yojana includes a training period of 15 to 20 days for borrowers to help them set up a business. This loan also includes a 16% subsidy based on the project cost. However, individuals can choose a mortgage loan, such as a loan against property over financing under the PMRY scheme to avail a higher loan amount.
One of the things you must know about a loan against property is that you can borrow up to Rs.3.5 crore under it, depending upon your eligibility and the property’s value. Such loans are known to serve as business loans as well as education loan.
If you wish to avail a loan under PMRY, you will have to make sure you meet the eligibility criteria.
How to apply under PM Rozgar Yojana 2020?
Listed below is the application process of PMRY.
- Visit the official PMRY portal
- Download the specific application form
- Fill the PM Rozgar Yojana form with accurate details
- Submit the form to one of the lenders included in the PMRY scheme
- Wait for them to get in touch with you
You will also have to submit a list of documents before the lender processing your request. For example, a driving license, documents of the proposed project, technical certificates, EDP Training Certificate, proof of residence, and income proof, are mandatory for Prime Minister Rozgar Yojana.
If you are wondering to apply for an education loan under a government scheme, the formalities are mostly the same. The processing, verification, approval, etc., of such loans, could take a bit longer in some cases. So, if an individual requires instant funds, he can settle for a LAP loan instead. Charges levied on a loan against property are usually nominal and affordable.
Commercial and private lending institutions in India make sure borrowers can access funds sooner so that the financial crisis does not pile up. Some of them even provide four-day loan disbursal on loan against property applications.
Reputed NBFCs also bring pre-approved offers that can help expedite this loan application process. You can avail these offers on financial products such as home loans and LAP loans. Check your pre-approved offer now by mentioning a few basic details.
If you plan to enrol under PMRY, keep in mind that you are only eligible if you are a resident of a given area for at least 3 years. Check the other Prime Minister Rozgar Yojana eligibility points for a clearer picture. In case you fail to qualify those points, you can always choose a loan against property for the same purpose.
