Pradhan Mantri Rojgar Yojana

What is Pradhan Mantri Rojgar Yojana?

After gaining an education, youth is mainly determined to secure an employment opportunity. To cover employment-related aspects, the Sarkari yojana list includes the Pradhan Mantri Rojgar Yojana, which was implemented by the Ministry of Skill Development and Entrepreneurship, Central Government of India to provide self-employment opportunities to unemployed youth and women. Pradhan Mantri Rojgar Yojana offers financial assistance to those who wish to develop enterprises in sectors of trade, manufacturing, and service sectors. Launched on October 2, 1993, the scheme offers the unemployed loans of up to 10 lac to youth and women.

Objectives

Prime Minister Mr. Narendra Modi launched Pradhan Mantri Rojgar Yojana for entrepreneurship development, i.e., to encourage youth and women to start their own business. This Yuva Rojgar Yojana aims to inspire educated unemployed youth and women to establish businesses by providing loans and various loan-related schemes. Additionally, the objective is to provide entrepreneurship education and coaching to more than 7–10 lac students in 5 years through 3050 institutes.

Highlights

In Pradhan Mantri Yuva Rojgar Yojana, 2200 colleges, 300 schools, 500 ITIs, and 50 entrepreneurship development centers deliver entrepreneurship education and training.

Under this scheme, a project cost coverage is provided, which comprises Rs. 2 lac, Rs. 5 lac, and Rs. 5 lac for sectors, such as business, service, and industry, respectively.

Collateral free loan of up to Rs. 1 lac can also be availed under this scheme.

Financially viable business or entrepreneurship options are covered by Pradhan Mantri Rojgar Yojana. These options are primarily associated with agricultural and allied activities; however, various agricultural operations are excluded from the scheme.

A subsidy of 15% of the total project cost is provided along with Rs. 12,500 for each borrower. This subsidy extends to Rs. 15,000 for various North-Eastern states, Uttar Pradesh, Himachal Pradesh, and Jammu & Kashmir.

Eligibility

Eligibility criteria for Pradhan Mantri Rojgar Yojana is as follows:

  1. Borrower should be of India nationality
  2. Borrower must be 18–35 years old
  3. Borrower must be minimum eighth pass out academically
  4. Annual income of a borrower’s family should not be more than 4 lac or should not be more than Rs. 40,000/month
  5. Borrower should not be a defaulter to any nationalized financial institution/bank/cooperative bank

The government offers special benefits for people with special needs.

Implementation of the scheme

Government entities that are mainly responsible for implementing Pradhan Mantri Rojgar Yojana are the Directorate of Industries and District Industry Centers along with banks. To implement this sarkari yojana, four steps are followed: identification/recognition of financial activities, selection of candidates/borrowers, identification of essential infrastructure required for implementation, and follow-up facilities and association with banks.

Respective implementation committee selects and encourages candidates for starting businesses; selects subsidiary activities; recognizes businesses, services, and various activities and strategically prepares a strong plan of action, recommends loan amounts suitable to a particular business plan, and obtains permission from associated authorities.

Training is provided to borrowers for over 15–20 days wherein they are taught the basics of business and industrial sector. For each borrower, training expenditure for the industrial sector is limited to Rs. 1,000 per case, which includes a stipend, whereas for each borrower, training expenditure for business sector tor is limited to Rs. 500, which also includes a stipend. Thus, Pradhan Mantri Rojgar Yojana is one of the biggest schemes launched by the central government of India to limit and reduce the rate of unemployment and proffer economic guidance to educated youth and women.

Documents required

Originals/copies of the following documents should be presented while registering for the scheme:

  1. Aadhar card
  2. Driving license
  3. EDP training certificate
  4. Residence proof ensuring that the borrower is a permanent resident of his/her area for a minimum of 3 years
  5. Birth certificate
  6. Eighth class pass out the certificate—or mark sheet—from a recognized school
  7. Income proof ensuring an annual income of less than 4 lac; this should ideally be issued by Mandal Revenue Officer
  8. Cast certificate, if applicable

Loan amount

The cost of this plan varies as per sectors, such as Rs. 1 lac for business, Rs. 2 lac for service and industry sector, and Rs. 10 lac for the fixed loan and operating capital. However, the digits may vary as per individual requirements. The subsidy is limited to 15% of the total project cost subject to a ceiling of Rs. 7,500/borrower.

Interest rates

Interest rates are low and preferably levied on the amount to be provided under the scheme based on the loan amount required. An interest relief of 6–8 months is allowed for repaying the loan amount, and the amount should be repaid in 3–7 years in easy installments.

Interest rates are charged as per the guidelines and instructions of the Reserve Bank of India. Currently, 12% interest is applied for Rs. 25,000 loan amount and for the loan amount of Rs. 25,000 to Rs. 1 lac, the interest rate is 15.5%.

Application process

  1. Individuals should download and fill out the application form available on the official website of Pradhan Mantri Rozgar Yojana.
  2. The filled forms are to be submitted to the respective bank that is listed under the scheme.

Once the bank gets in touch with an applicant:

  1. Beneficiaries are selected by the district- or sub-committee established at the administrative level.
  2. Interviews are conducted, and document proofs are verified.
  3. The committee then sends an application letter to the selected candidate to obtain permission from the respective bank.
  4. Once permitted by the bank, loans are approved.

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