||Loans for self employment
|PRIME MINISTER ROZGAR YOJANA
For Self - Employment
Prime Minister Rozgar Yojana (PMRY) for providing self-employment to educated unemployed youth has been in operation since October 2, 1993. The scheme aimed at assisting the eligible youth in setting up self-employment ventures in industry, service & business sectors. The scheme has been modified to enhance its coverage and scope. The modified parameters are as under:
The salient features of PMRY are as under:-
ii)18 to 45 years for Scheduled Castes/ Scheduled Tribes, Ex-Servicemen, Physically Disabled and Women.
Qualification: VIII pass. Preference will be given to those who
have been trained for any trade in Government
recognized /approved institutions for duration of at
least six months.
3. Family Income: Neither the incomes of the beneficiary along with the spouse nor the income of parents of the
beneficiaries shall exceed Rs.40,000/- per annum.
4. Residence Permanent resident of the area for atleast 3 years. (Relaxed for married women. In case of married
women the residency criteria applied to her husband or in-laws)
5. Defaulter: Should not be a defaulter to any nationalized bank/financial institutions/cooperative bank. Further, a
person already assisted under other subsidy, linked Government schemes would not be eligible under
6. Activities Covered: All economically viable activities including agri-culture and allied activities but excluding direct agricultural operations like raising Crop, purchase of manure etc.
7. Project Cost: Rs.1.00 lakh for business sector. Rs.2.00 lakh for other activities, loan to be of composite nature. If two or more eligible persons join together in a partnership, project upto Rs.10.00 lakh are covered.
Assistance shall be limited to individual admissibility.
8. Subsidy & Margin Money: Subsidy will be limited to 15% of the project cost subject to ceiling of Rs.7,500/- per enterpreneur . Banks will be allowed to take margin money from the entrepreneur varying from 5% to 16.25% of the project cost so as to make the total of the subsidy and the margin money equal to 20% of the project cost.
9. Collateral: No collateral for units in industry sector with project cost upto Rs.2.00 lakh (the loan ceiling under the PMRY). For partnership projects under Industry Sector , the exemption limit for obtention of collacteral security will be Rs.5.00lakh perborrowal account. For units in service and business sector no cololateral for project upto Rs.1.00lakh. Exemption from collateral in case of partnershipProject will also be limited to an amount of Rs.1.00lakh per person participating in the project.
10. Rate of interest & Normal rate of interest shall be charged. Repayment repayment Schedule may range between 3 to 7 years an initial moratorium as may be prescribed
11. Reservation; Preference should be given to weaker sections including women. The scheme envisages 22.5%
reservation for SC/ST and 27% for Other Backward Class (OBCs). In case SC/ST/OBC candidates are not available, States/Uts Govt. will be competent to consider other categories of candidates under PMRY.
12. Training : Each entrepreneur whose loan is sanctioned is provided training as per details given below:
i) For industry sector: Duration:15-20 working days.
ii) For service & business sector: Duration: 7-10 working days. ) Stipend: Rs.150/- ) Per Training expenditure: Rs.350/- ) beneficiary
13. Implementing Agency: The District Industry Centres and the Directorate of Industries of Industries are mainly responsible for Implementation of the Scheme along with the banks.