PMRY – Scheme Eligibility, Documents and Implementation


As per the census 2011, almost one-fifth, or 19.1% of India’s population constitutes youth (aged between 15 to 24 years). Nonetheless, it is anticipated that by the end of 2020 this percentage will reach 34.33%. Hence, to utilise this talent pool, the Government of India has taken several initiatives for employment generation aimed towards the educated and potential youths of the country.

Pradhan Mantri Rozgar Yojana is one such Central Government scheme that aids the youth to initiate start-ups, especially in the manufacturing, service and trade sectors. According to a government report, approximately 69.5 lakh individuals have enrolled in this scheme between 2018 and 2019.

What is PMRY?

Prime Minister Rozgar Yojana is a Central Government Scheme launched in 1993 intending to offer sustainable employment opportunities to over 1 million unemployed youths during the 8th Plan. With the help of this scheme, unemployed youth can opt for self-employment ventures and can choose a better livelihood.

However, you can also consider availing a loan against property to start your business in case the scheme does not fulfil your financing requirements entirely.

Features of the scheme 

Under the PMRY scheme, a subsidiary provided by the government is limited to 15% of the undertaking cost. Furthermore, for a business entrepreneur, this is restricted to Rs.12,500 additionally. Moreover, for different regions of the country, this appropriation limit is different. Hence, it is advised that before applying for benefits under the Prime Minister Rozgar Yojana, an applicant should check the region-specific features from the official website of the same.

Apart from that, applicants must consider several other aspects. It will thus help them to make financial arrangements accordingly.

  • Collateral and guarantee 

This scheme does not ask for any collateral as security for sanctioning the loan amount of up to Rs.2 lakh.

  • Rate of interest 

The interest rate generally varies with differing eligibility of applicants and rules regarding the area.

  • Preparation time 

Training is also offered to the beneficiaries so that they can set up their business efficiently. For that, 15 to 20 days are required.

  • Ban period

Pradhan Mantri Rozgar Yojana comes with a ban period that allows borrowers to gather funds from their own endeavours before the loan is reimbursed.

What are the eligibility criteria for PMRY?

Just like any other Government scheme, PMRY also requires you to meet some specific eligibility requirements that applicants should fulfil. Following are the eligibility criteria for the PMRY scheme.

  • Age

The applicant must be aged between 18 to 35 years old. However, for SC/ST, ex-servicemen are physically challenged, and women candidates will be given a relaxation of 10 years.

  • Educational criteria 

To avail this scheme, an applicant must be qualified up to at least Class VIII and those with any training certificate of at least 6 months from any government recognised institutions would be given preference.

  • Family income 

The family income of the beneficiary, including his/her spouse, should not exceed Rs.40,000 per annum.

  • Residence 

Only the permanent resident residing for over 3 years in a qualifying area will be eligible for this scheme.

  • Reservation 

The emphasis or preference will be given to women and weaker sections of the society for sanctioning the scheme. Moreover, this scheme offers 22.5% reservation for SC/ST candidates and 27% for other backward classes.

However, if you cannot match up with the eligibility criteria, you can still borrow funds for your start-up by availing a mortgage loan with easy repayment facility and minimal documentation.

Which documents are required for the PMRY scheme?

To successfully submit the form for Pradhan Mantri Rozgar Yojana, one needs to provide the attested copies of the following documents checklist.

  • Date of Birth proof (certificate from school, birth certificate, etc.)
  • All the documents related to qualification
  • Proof of residency (ration card or certificate issued by MRO)
  • Income certificate (issued by MRO)
  • Driving licence
  • Experience certificate
  • A copy of the proposed project.

Applicants should also remember that any discrepancy in the documents as well as in filled-up form may lead to the rejection of the application.

Alternatively, you can opt for a loan against property by utilising your property’s equity value.

Several financial institutions also provide pre-approved offers on different financial products like loans against property, home loans, etc. Such an offer makes the loan approval process effortless and also saves a lot of time. You can check your pre-approved offer instantly by entering your name and phone number.

Hence, besides taking assistance from schemes like Pradhan Mantri Rozgar Yojana, you can opt for secured loans like loan against property. However, for that, you should also get an insight into a step-by-step guide to apply for a loan against property. It will ensure a smooth application process and instant loan approval.

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