Prime Minister Rozgar Yojana, or PMRY, is an initiative undertaken by the Central Government to offer employment opportunities to the country’s unemployed youth. This scheme aims to encourage young and talented individuals to support their business goals financially.
PMRY loan scheme, launched in 1993, offers funds of up to Rs.10 lakh and provides skill training for their respective work field.
Individuals planning to apply for this scheme must understand the application procedure and benefits to make an informed decision.
How to make an application for the Prime Minister Rozgar Yojana scheme?
Applicants who have finalised their business plans can apply for Pradhan Mantri Rozgar Yojana by following these steps.
- Download or collect the hard copy of PMRY Form from the official website.
- Fill the allotted spaces with relevant data.
- Submit required documents and filled form in the District Industries Centre or respective lending institution with photos.
After the submitted documents and data are verified, the lending institution contacts the applicant for an interview. Typically, loan disbursal is based on the result of three interviews.
What are the benefits of PMRY?
Some of the notable advantages of this PMRY scheme are –
- The repayment tenor of this credit form is longer. It can extend up to seven years, making it convenient for borrowers.
- This scheme offers coverage to almost every business venture and agricultural production. However, it doesn’t include farming activities.
- Under the Prime Minister Rozgar Yojana scheme, individuals can gain a 15% subsidy. In this regard, the amount may vary according to states.
To gain these benefits, individuals need to fulfil certain eligibility criteria and documentation. These would further remove the chances of loan rejection.
What are the eligibility parameters of the Pradhan Mantri Rozgar Yojana?
- An applicant must fall under the age bracket of 18-35 years.
- He/she must have passed 8th standard or have an equivalent qualification.
- Individuals must reside in an area or locality for at least three or more years.
- The income of the family must not exceed Rs.40,000.
- Applicants must not be a defaulter or have a poor repayment history
What are the documents required for the PMRY scheme?
- KYC documents
- Education qualification certificate
- Address proof
- Project plan
- EDP training certificate
- Caste certificate
- Driving licence, etc.
Fulfilling these criteria mentioned above and submitting these documents would facilitate quick loan approval.
However, if an individual fails to qualify for these parameters, he/she can look for an alternative like a loan against property. This credit form offers substantial funds that can be utilised to meet varied requirements.
Why avail a loan against property to finance a business?
- Simple eligibility
Potential borrowers applying for a loan against property to start their business needn’t submit any structured business plan. Typically, lenders verify one’s credit score and income limit for approval. The age limit for salaried applicants must be between 33 to 58 years while 25 to 70 for self-employed.
- High loan value
A LAP works as the best liquidity source due to the high LTV ratio it offers. A borrower can borrow considerable funds depending on the property’s value.
- Flexibility in usage
Individuals planning to invest in a start-up use the funds gained from loan against property in consolidating existing debts. The secured nature of the loan gives the borrower the power of spending.
In this regard, an individual must compare different lenders and find the one offering added benefits. Some HFCs extend pre-approved offers that streamline the loan application process and helps save time. These offers are available on financial products like home loan, LAP, etc. Check your pre-approved offer by submitting your name and contact details.
The Pradhan Mantri Rozgar Yojana is an exemplary initiative undertaken by the Central Government to boost youth employment. To gain maximum benefits out of it, individuals must keep a tab on the regular updates and arrange documents accordingly. Alternatively, one can also opt for a secured source like LAP to support their business goals.
Must Read : What is PMAY: Features and Eligibility Criteria