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Pradhan Mantri Rozgar Yojana – Objective, Eligibility & Features

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Pradhan Mantri Rozgar Yojana was launched in 1993 by the Government of India as a form of financial assistance to the educated unemployed youth to help them initiate their business ventures. This scheme covers up more than 10 lakh women and youth aided by the government to engage in different kinds of services and businesses. The initiative aims to reduce the high percentages of unemployment in the urban and rural regions of the country.

Objective

This initiative is an integral part of the VIII plan period and continues still in the 5-year plan. This programme aims to provide loans for unemployed youths of the country to reduce the proportion of unemployment against employment in the whole country. It has goals to set up micro-enterprises counting at around 7 lakh by providing essential financial support to the youth. Direct agricultural ventures do not come under this scheme although it covers all other business options including agriculture and allied activities.

Eligibility criteria

To apply for the Pradhan Mantri Rozgar Yojana, you need to fulfil the essential eligibility criteria –

  • The applicant must pass the 8th standard.
  • Age of the applicants should be within 18-35 years while SC/ST, ex-servicemen, physically challenged, and women candidate will enjoy a relaxation on the higher threshold by 10 years.
  • Individual’s family income must be a minimum of Rs.40,000 per annum.
  • Proper residential address along with residing there for at least 3 years.
  • Applicants must not possess any default payments in any financial institutions across the nation and not participate at any subsidy-linked initiatives of the central government.
  • To avail a personal loan for unemployed, the candidate must be an unemployed citizen of India.

Documents

The above mentioned documents are needed to apply and avail the benefits of Pradhan Mantri Rozgar Yojana –

  • Passport sized photograph.
  • Aadhaar card.
  • Certificate of education qualification.
  • Training certificate of EDP.
  • Proposed project profile’s copy.
  • Driving license.
  • Income certificate.
  • Caste certificate.

After meeting the eligibility criteria and submitting the required documents, individuals can apply for a personal loan under Pradhan Mantri Rozgar Yojana to initiate their enterprises. 

This personal loan scheme comes under differently provided interest rates and tenor by several banks and NBFCs. 

Features

Pradhan Mantri Rozgar Yojana has some essential features with the focus to provide financial help to the unemployed youths of the country. The essential features of this initiative are –

  • The availability of no-collateral loans amount is up to Rs.1 lakh.
  • The scheme is regulated by authorities including various private financiers, District Industry Centres, NBFCs, and Directorates of Industries etc.
  • Total repayment toner of this loan is in between 3 to 7 years for the individuals.
  • Remission of Rs.1 lakh will be provided to the individuals who are in a partnership project.
  • One individual can avail up to 15% subsidy on the cost of the existing project which is equal to a maximum of Rs. 12,500 except the individuals from Jammu & Kashmir, Himachal Pradesh, North-Eastern regions, and Uttaranchal. These selected regional individuals will enjoy a subsidy of maximum Rs. 15,000 on their unemployed loans under Pradhan Mantri Rozgar Yojana.
  • The programme doesn’t approve direct agricultural activities but covers different stable economic trade opportunities.
  • Financers allow individuals to borrow money at a rate of interest ranging from 5% to 16.25%.

Some HFCs like Bajaj Housing Finance Limited offer Loans against Property at affordable interest rates. These secured loans offer a much higher sum of disbursal and longer tenor to help repay easily.

They also provide pre-approved offers on various loans for easy and smooth application. These offers are available on loans against property, personal loans, home loans, business loans, etc. You can check your pre-approved offers by entering your details to avail their service.

Pradhan Mantri Rozgar Yojana is an important project for the Government of India. It aims to fulfil its prime objectives of providing essential financial assistance to youth and women of the country. To run the procedure successfully, different financial institutions assist the government and help to make the process better.

If you need a higher sum of funds, you can easily opt for a secured loan against your available property. Determine the ideal tenor of your loan against property and plan your finances properly to avoid any issues with the repayment schedule.