Essential Facts About Pradhan Mantri Rozgar Yojana

In 1993, the Central Government of India had taken up an initiative in the form of Pradhan Mantri Rozgar Yojana to provide financial assistance to educated youth who wanted to start their own business ventures. This initiative offered several unique features and benefits, such as –

• One can avail a loan without any collateral of up to Rs.1 lakh. 
• Through this facility, one can avail a subsidy of 15% on the entire project cost, equivalent to Rs.12,500 except in specific states such as Jammu and Kashmir, Himachal Pradesh, Uttaranchal and other North-Eastern regions, where one can enjoy a subsidy up to Rs.15,000. 
• The repayment tenor for such loan for unemployed varies between 3 to 7 years. 
• This initiative encourages all economically stable business ventures except direct agricultural activities. 

However, to benefit from this scheme, an individual has to meet certain eligibility criteria.

Eligibility Criteria 

• The applicant should be between 18 to 35 years of age. 
• He/she should have cleared at least 8th standard. 
• The family income of the individual should be a minimum of Rs.40,000 per annum. 
• He/ she should have proper residential proof of a minimum of 3 years in the place of application. 
• The person should not be a defaulter in terms of payments and must have a good credit score to avail an unemployed loan. 

Top financial institutions and trusted housing finance companies also offer personal loans for unemployed youth at competitive interest rates.

To meet lump sum loan requirements, one can also avail loan against property offered by various HFCs.

One should always remember to provide valid documents such as KYC details, income details and educational certificates to enjoy the benefits of this Government introduced initiative.

Must Read : How to Apply for Pradhan Mantri Rozgar Yojana?