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 Pradhan Mantri Rojgar Yojana

The Pradhan Mantri Rozgar Yojana, in short PMRY, is an initiative by the Central Government in India that aims to provide educated and unemployed youths with sustainable self-employment opportunities. 

This scheme was launched on 2nd October in the year 1993 by the Central Government. This scheme offers an unemployment loan as financial assistance to the youths and women who can use that money to set up their income and become self-employed. 

To avail of this scheme, one must come under the age group of 18-35 years, with SC/STs, servicemen, women, and physically handicapped having a ten-year-old relaxation. Under the Ministry, the Development Commissioner of Small Scale, Rural, and Agro Industries handle the scheme directly. And in every quarter, the progress of the scheme is monitored by the state-level Pradhan Mantri Rozgar Yojana team.

Purpose of the Pradhan Mantri Rojgar Yojana

The Pradhan Mantri Rozgar Yojana relates to the setting up self-employment ventures via business routes and industry services. Under the scheme, budding entrepreneurs can initially access the funds needed to start a business venture in sectors such as trade, service, manufacturing, etc. 

The Pradhan Mantri Rozgar Yojana financially empowers eligible candidates to launch viable enterprises. It offers them to find an alternative source of livelihood by creating new job opportunities. The scheme explicitly targets the medium business sector and also the micro business sector. Beneficiaries will also be allowed to fund agricultural projects, barring direct agrarian operations.

Pradhan Mantri Rojgar Yojana Scheme

The Pradhan Mantri Rozgar Yojana scheme is sponsored by the Central Government and assists with projects that have an overall cost of Rs 2 lakhs if it is in the business sector, and the amount rises to Rs 5 lakhs if its in the service or industry sectors.

  • This scheme is meant for small entrepreneurs to set up their businesses in an affordable way. The system provides a 15% subsidy for the project, subject to a ceiling of 7500 rupees for each entrepreneur.
  • The bank can ask the entrepreneur for 5%-16.25% of the project cost as margin money.
  • The margin money combined with the subsidy may amount to 20% 0f the project costs.
  • One can avail of a loan up to Rs 1 lakh that is collateral-free. That is, the individual availing the loan doesn’t have to keep anything in the mortgage. And while partnership, the exemption is Rs 1 lakh for each participant.
  • The PMRY scheme has a 3 to 7 years range of repayment tenor. The moratorium period is also offered by the PMRY scheme, which allows an individual to make money from their venture before the repayment over the 3-7 years period.
  • Individuals applying for this are also provided with 15-20 days of training, so they have guidance in setting up a successful business.

What are the benefits of the Pradhan Mantri Rojgar Yojana (PMRY)?

The Pradhan Mantri Rojgar Yojana (PMRY) is a government initiative to provide employment to the poor and promote education. Prime Minister Narendra Modi announced the scheme in June 2018. Here are some of its benefits:

  • Employment for the poor: The scheme aims to generate employment for two crore people. It also aims to provide job opportunities for those who have been left out of any economic activities or deprived of employment opportunities. The scheme also provides a platform where people can start their businesses.
  • Education: The scheme will provide free education to all children between 6 and 14 years and a hostel facility for girls studying beyond Class 7 to Class 10. For children between 16 and 18 years old, it provides free education with hostel facilities up to Class 12 (in schools). It also provides scholarships for deserving students pursuing higher education courses outside India.
  • The Pradhan Mantri Rozgar Yojana is a government scheme that aims to provide subsidies of up to 20% to the beneficiaries. In addition, banks will provide loans of up to 100000 rupees from the central government to the beneficiaries through this scheme. It will help them start their businesses and develop business skills they can use in the future.
  • This scheme allows unemployed youth to start businesses and contribute positively to the economy. It will help remove unemployment from India, which has been a problem for many years.
  • The Pradhan Mantri Rozgar Yojana 2022 has been prepared by the Government of India to help people who are currently unemployed find work and develop skills that they can use in the future when they need it most.

Who are eligible for the Pradhan Mantri Rojgar Yojana?

The Government of India has announced a scheme for the construction of houses for the economically backward class people. The scheme is called Pradhan Mantri Awaas Yojana (PMAY) and is being implemented from 1st April 2018.

Under this scheme, different eligibility conditions depend on the region and the beneficiary category. The eligibility conditions under PMRY Scheme are:

  • For all literate people in the age group of 18 to 35 years.
  • Educational qualification should be 8th pass.
  • The interest rate should be the simple interest rate.
  • Payment time should be 3 to 7 years after the moratorium period.
  • Family income must not exceed 40,000/month.
  • Residence should be in that place for more than three years.
  • A defaulter cannot be a defaulter of any nationalized financial institution/bank / co-operative bank/ other financial institution such as LIC or HDFC Bank / Mutual Fund Company etc., to date.
  • Subsidy and margin money for [company name] project is Rs.7,500. The subsidy will be limited to 15% of the project’s cost. A person can get a maximum of Rs.7,500 until today. A bank or financial institution provides the rest of the loan per their norms and procedure.
  • There is no need to have any giving for the project to date. Reservation is made based on caste and gender. Dalits (SC/ST), Women are given priority in this project.

What are the documents required for the Pradhan Mantri Rojgar Yojana?

The following documents are required for applying to the Pradhan Mantri Rojgar Scheme:

  • Your birth certificate or SSC/HSC mark sheet.
  • Proof of you being a country resident for the last three years, like a ration card or land property deeds.
  • Income certificate issued by the Mandal Revenue Officer.
  • An Entrepreneurship Development Program certificate.
  • Driving license of yours.
  • Your technical and educational certificates.
  • Your project proposal sample.

How can you apply for the Pradhan Mantri Rojgar Yojana Loan?

You need to follow the steps for applying to this scheme:

  • Print out the Pradhan Mantri Rojgar scheme form
  • Fill out your details accurately.
  • Go to the DIC/ bank to submit the form. ( The DIC/ bank should fall under the Pradhan Mantri Rojgar Scheme)
  • You can use a model application form also while applying.
  • When submitting your paper at the DIC/bank, you must also submit your project ideas.
  • Your project profile should include the fixed assets, the raw materials required, employee wages, the production cost, expenditure, etc.
  • After the verification process, you will call for the selection round, i.e. an interview.
  • If you have good credit, you can get up to Rs.5 crore low loan against a property interest rate.

Implementation of the Pradhan Mantri Rojgar Yojana Scheme

  • After reviewing the factors like population, unemployment & economic strength, the Development Commissioner for Small Scale Industries decides on a target rate for April to March.
  • The Pradhan Mantri Rojgar application forms are available in DIC offices, local banks, and Industry Promotion Officers.
  • If you are a selected candidate, you will be provided with the necessary training for endurance.
  • The duration of the training is 15 to 20 days if you are in the manufacturing sector.
  • It will take 7 to 10 days of training in the service or business sector.
  • Once you complete your training, your progress will be verified by the PMRY scheme, and they will grant you the loan.

Pradhan Mantri Rojgar Yojana Scheme modifications

  • You will get a relaxation of 10 years on the age limit if you are an SC/ST candidate or a woman.
  • The educational qualification has been reduced to standard *
  • The project cost has been increased to Rs.2 lakh.
  • The Pradhan Mantri Rogjar Yojana scheme also includes agriculture and activities related to agriculture. Where else purchasing of manure or raising crops has been excluded from the direct agricultural operations.
  • You can get up to Rs. 5 lakh if you apply as a group of candidates.
  • The North Eastern states’ age limit has been raised to 40years.


The Pradhan Mantri Rojgar Yojana is funded by the central government and administered by state governments. It is a great initiative taken by the Government of India. The central government provides all the funding for new housing projects, but each state administers its programs and determines how to allocate them.

Each state develops criteria for determining who gets housing under the program and how much money residents need to qualify for loans.

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