PMRY Personal Loan Scheme: Eligibility and Features

personal loan

The Central Government of India launched the Pradhan Mantri Rozgar Yojana, popularly known as PMRY, in 1993 to encourage self-employment possibilities for the nation's educated women and youth. This programme offers financial assistance to people who want to start their own businesses in various industries, including manufacturing, commerce, and services. Beneficiaries can also use the government loan scheme for unemployed youth to get money for non-agrarian agricultural initiatives.

The Centre for Monitoring Indian Economy (CMIE) reported that the jobless rate in India increased to 7.7% in December 2019. This has had a substantial negative influence on the overall development of the Indian economy, especially when combined with the GDP dipping below 5% in the two quarters prior.

However, the PMRY programme significantly contributes to the empowerment of qualified applicants by providing them with financial support from the Central Government to launch successful businesses. This promotes the establishment of new job possibilities, notably in the micro, small, and medium company sectors, and helps educated people who are unemployed find sustainable means of living.

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Eligibility Criteria

If you want to apply for the government loan scheme for unemployed youth, consider the following eligibility criteria:

  • Age

    Applicants should fall within the age bracket of 18 to 35 years. However, there is a relaxation of 10 years for candidates belonging to SC/ST categories, women, ex-servicemen, and individuals with physical disabilities, extending the eligibility age limit to 45 years for these groups.
  • Education

    The applicant must have successfully completed the 8th standard. Additionally, individuals who have received formal training in any trade from a government-recognised institution for a minimum duration of 6 months may receive certain preferential considerations.
  • Family Income

    The total annual income of the individual's family, which encompasses the income of both the individual and their spouse or the income of their parents, should not exceed Rs. 40,000.
  • Residence

    The applicant must be a resident of the locality where they currently reside, and they should have maintained their residence there for a minimum of three years.
  • Loan Default

    The applicant must not have a history of loan default and should not be associated with other government schemes linked to subsidies.

Features of Prime Minister Rojgar Yojana (PMRY)

Here are some of the key features of the PM Rojgar Yojana govt schemes for unemployed in India:

  • The PMRY scheme offers funding for economically viable business activities, including agricultural and allied activities, except for direct crop planting and cultivation.
  • The loan limit for PMRY is set at Rs.1 lakh for businesses and up to Rs.2 lakh for non-business endeavours.
  • Under this scheme, applicants can avail of a composite loan of up to Rs.95,000 for business sector enterprises and up to Rs.1.9 lakh for non-business sector ventures.
  • Banks providing the personal loan from government scheme require a margin ranging from 5% to 16.25%. The margin varies from 5% to 12.5% in the North-Eastern States.
  • The combined subsidy and margin should not exceed 20% of the project's total cost. PM Rojgar Yojana offers up to 15% subsidy, with a maximum subsidy cap of Rs.7,500 per borrower (except in the North-Eastern States, where it is Rs.15,000).
  • Collateral-free loans are available up to Rs.1 lakh for business and service sectors and up to Rs.2 lakh for industrial sectors. However, borrowers must provide a personal loan repayment guarantee, and any asset purchased or created using the loan is hypothecated (pledged as security) to the bank.
  • The loan repayment period under this scheme ranges from three to seven years. No processing charges are applicable when applying for Prime Minister Rojgar Yojana loans.

How To Apply for a Loan Under The PMRY

To complete the online registration for the govt schemes for unemployed in India loan application process, follow the steps outlined below:

Step 1: Begin by visiting the official website of the Prime Minister's Rozgar Yojana at You can either download the application form from the website and fill it out electronically or obtain a hard copy of the PMRY form.

Step 2: You must upload the form for the personal loan from government scheme and scanned copies of the required documents for online application submission. Alternatively, suppose you have a hard copy of the form. In that case, you can submit it and the necessary documents at either the District Industry Centers (DIC) or the designated banks participating in the PMRY scheme.

In addition to the application form and supporting documents, applicants must also submit a project idea report that includes thorough information about the project's resources, expenses, production costs, and other pertinent facts.

The District Industry Centres' (DIC) rigorous evaluation of each application. The next step is interviewing the chosen applicants to gauge their comprehension of the proposed project. Beneficiaries participate in a training programme that normally lasts 15 to 20 days after reaching the final decision. The loan money is transferred to the beneficiary's bank account after finishing this course.

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With the help of the Pradhan Mantri Rojgar Yojana (PMRY) personal loans for the unemployed, worthy young people who are unemployed may revitalise their businesses, boost production, and establish a stable source of income. If you satisfy the requirements, think about requesting a PMRY loan.

Take advantage of these personal loans for the unemployed right away to launch your company and develop your entrepreneurial skills, paving the way to success!