The Pradhan Mantri Rozgar Yojana (PMRY) is the brainchild of the Central Government of India, which offers financial assistance to the educated unemployed youth of the nation. This scheme offers affordable interest rates and easy repayment tenor, making it convenient for borrowers to avail secured loans like loans against property.
Benefits of Pradhan Mantri Rozgar Yojana scheme
This lucrative Central Government scheme offers self-employment opportunities to educated men and women based on their eligibility. Here are the following ways in which the PMRY scheme helped many people:
- The easy repayment tenor, which ranges from 3 to 7 years, reduces the borrower’s burden while availing secured loans like home loans or loans against property (LAP).
- Under the scheme, an eligible individual can borrow collateral-free loans of up to Rs.1 lakh. However, if the requirement of loans is more than the prescribed amount, an individual can opt for home loans or a loan against property.
- The PMRY scheme includes all the legit business options which involve agriculture, horticulture, soil and water conservation, etc.
- One of the main benefits is the subsidy on interest rates, up to 15% of the project. Under this scheme, the maximum cap allowed to an individual is Rs.12,500. The eligible Individuals can use home loans or the LAP EMI calculator to check the exact instalment amount of the loan.
In order to avail these benefits, individuals must be eligible for requirements laid down by the governing bodies.
Know How the PMRY Scheme Works
The Pradhan Mantri Rozgar Yojana scheme is completely centrally sponsored and was launched on 2nd October 1993. The Government provides loans as per the nature of business, which includes:
- An individual can borrow up to Rs.2 lakhs for manufacturing activities in business sectors
- For industry sectors, loan amount under the PMRY scheme will be up to Rs.5 lakhs
- Lastly, for setting up ventures in service sectors, individuals can borrow up to rs.5 lakhs
One of the primary features of this scheme is the subsidised interest rate which is up to 15% of project cost. Hence, individuals eligible under this scheme can enjoy benefits of comparatively lower property loan interest rates from reputed lending institutions. However, a borrower needs to qualify for a loan against property by meeting some simply eligibility criteria laid by financial institutions.
Moreover, various authorised financial lenders provide pre-approved offers on such loans, ensuring speedy processing time and easy disbursal. To check the pre-approved offers, individuals can enter their essential contact information.
Eligibility Requirements for this PMRY Scheme
Under the PMRY scheme, an applicant needs to meet a list of eligibility requirements to avail scheme’s benefits. Some of the notable criteria are mentioned below:
- As mentioned in this scheme, minimum age requirement is between 18 years and 35 years.
- Initially, the minimum educational qualification requirement was 10th standard. However, as per current modification, one who has cleared 8th standard is eligible for the scheme.
- Under this scheme, an applicant’s total monthly income must be Rs.40,000 or lower.
- Applicants should not be loan defaulters under any authorised financial institutions. Furthermore, he/she must not be a beneficiary under any subsidy involve scheme of the Government.
- Individuals, inclusive of women belonging to SC and ST, can avail benefits under the PMRY scheme.
Apart from this, there is a list of documents require to apply for such a scheme which are:
- Birth certificates
- Proof of residence includes an Aadhaar card, ration card, etc.
- Driving licence
- Qualification certificates
- Income proof, etc.
Borrowers looking for funding options will have to submit the same list of documents to apply for a loan against property.
The inception of these schemes has encouraged many to borrow home loans or loans against property at subsidised interest rates. Moreover, these initiatives encourage self-reliance and an entrepreneurial mindset in the youth of India.