Eligibility Criteria to Get a Pradhan Mantri Rozgar Yojana Loan

The Pradhan Mantri Rozgar Yojana Loan was launched in 1993. It is a central government initiative aimed to offer monetary assistance to India’s unemployed and educated youth and help them to find employment. 

The purpose of this scheme is to incentivise employers for generating employment and receive financial assistance for establishing their business, irrespective of the sector. However, to qualify for this, they must meet certain eligibility parameters. 

What are the eligibility criteria for Pradhan Mantri Rozgar Yojana? 

Underlined below is a detailed outline of the eligibility criteria of PMRY: 

  • Individuals must be aged between 18 and 35 years. 
  • They must have been residing citizens of a given locality and should have stayed there for at least 3 years. 
  • They must at least pass the 8th standard. Moreover, those who have received training in the field of trade from a government recognised institution would be preferred. 
  • Applicants must not have any default history. 
  • The annual family income should not be more than Rs.40,000. This includes the income of parents and spouses. 

Furthermore, applicants belonging from the SC\ST category, physically challenged, ex-servicemen can get an age relaxation of 10 years. 

Documents required for PMRY 

To avail of this PMRY scheme, individuals must meet the above-mentioned eligibility criteria and furnish essential documents such as:

  • Birth certificate or proof of birth
  • Proof of residence for at least 3 years
  • Income certificate issued by a Mandal Revenue Officer
  • Certificate from Entrepreneurship Development Program
  • Driver’s license 
  • Technical and educational certificate of qualification 
  • Proposed project copy 

Alongside the eligibility and documentation of Pradhan Mantri Rozgar Yojana, one must know the application process of the same. 

How to apply for PMRY? 

Underlined below is a step by step guide process on applying for this scheme: 

Step 1– Navigate to the official website of PMRY 

Step 2– Then, download the application form 

Step 3– Fill up the form with relevant information 

Step 4– Scan and upload the required documents and attach them with the application form 

Step 5- Submit the application form to the financial institution 

Features and benefits of PMRY 

Underlined below are several features of the scheme: 

  • Implementation 

PMRY has been implemented at the State level. It so far has been done with the help of various financial institutions, Directories of Industries and District Industry Centres.

  • No collateral 

An eligible applicant can avail of a loan amount of up to Rs.1 lakh without submitting any collateral.

  • Extended tenor 

The repayment tenor can range from 3 to 7 years for this scheme.

  • Training 

Under this scheme, applicants are entitled to receive 15-20 days of training. This training is aimed towards educating the youth about the fundamentals of business and making a sound investment.

  • EMIs 

Under this scheme, beneficiaries will receive the loan amount in EMIs, and they can pay off the same in easy instalments.

  • Subsidy 

The subsidy is also extended for eligible candidates. Individuals can receive 16% of the cost of the project as a subsidy. However, one must know that the upper limit of the project cost is set at Rs.12,500 per individual. 

However, if the individuals feel that the eligibility criteria of PMRY are stringent, they can apply for property loan as an alternative.

What are the benefits of a loan against property? 

A loan against property is a secured credit facility that one can avail of if they meet the set eligibility parameters. It has the following benefits: 

  • Substantial loan amount 

With a loan against property, one can get substantial funds that have no end-user restrictions. In addition, one can get a lower loan against property interest rate as it is a secured credit option. 

  • Easy eligibility parameters

The loan against property eligibility criteria is lenient as compared to the PMRY scheme, which makes availing of a loan easier.

  • Longer tenor 

Another notable advantage of LAP is the longer repayment tenor, which helps to repay the credit easily. Prospective borrowers can use a loan against property EMI calculator to find a tenor as per their repayment capacity.

  • Pre-approved offers

Leading financial institutions extend pre-approved offers that streamline the loan application process. These offers are applicable on financial products like LAPs, home loans, etc. Individuals can check their pre-approved offers by submitting their essential contact details.

Hence, Pradhan Mantri Rozgar Yojana is a scheme that aims to strengthen India’s economy by supporting unemployed yet educated youths in establishing their business. However, eligible candidates must know of the above pointers to ensure a hassle-free application. 

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