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?

The Government of India has taken up quite a few initiatives to provide loan options and subsequently employment to the unemployed youth of India.



These different schemes and loans for unemployed are discussed in detail underneath –

1. Property loans 

Unemployed individuals can avail a loan against property, which offers up to Rs.3.5 crore. Along with high financing, additional features like convenient tenor options, additional top-up loans, etc. are also offered on such schemes.

2. Prime Minister Rozgar Yojana 

This scheme was launched in the year 1993. It offers up to Rs.1 lakh for businesses while other types of enterprises are offered up to Rs.2 lakh. Entrepreneurs can avail a subsidy of up to 15% on the project costs.

3. Prime Minister’s Employment Generation Programme 

Launched in the year 2008, this scheme offers loan for unemployed youths who intend to establish their business. While there are specific slabs based on the academic qualifications of the individuals, a maximum of Rs.10 lakh is offered for businesses while it goes up to Rs.25 lakh for the manufacturing sector.

4. State government initiatives 

A few state governments have also launched financing schemes for unemployed youth. One of the major initiatives by a state government was that of New Entrepreneur cum Enterprise Development schemes (NEEDS) by the Tamil Nadu government. This scheme does not just provide loan to the unemployed but also provides them with industry-specific training.

While these loan schemes offered by the Government of India or State Governments have a few benefits like subsidised rates of financing or lower rates of interest, they have a few drawbacks too. Usually, the amount of money offered in financing can be quite low. Hence, availing a loan against property can be more beneficial.

Know about Different Kinds of Loans against Property in brief