Discover PMRY: Scheme, Full Form, and How to Apply Online

Pradhan Mantri Rozgar Yojna (PMRY)

The full form of PMRY is Pradhan mantri rozgar yojna. The Pradhan Mantri Rozgar Yojna is a scheme that was first launched in the year 1993. This is an initiative taken by the Indian Government with the aim of providing opportunities for self – employment. The target demographic of the scheme are the educated unemployed youths of the country.
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The Pradhan Mantri Rozgar Yojna is a loan scheme that can be taken up by the educated youth of the country. Using this loan scheme, the youth in financial assistance and support need to start their own start-up or business venture in sectors such as service, manufacture, and trade.

Objective of PMRY

The Pradhan Mantri Rozgar Yojna serves to accomplish mainly 2 objectives. The first being to generate an incentive for employers to generate new employment in their establishments. The Government of India will be paying 8.33% EPS contribution of the employer for the new employment.

The second objective of PMRY is to facilitate a large number of educated unemployed individuals to gain employment in their field. By doing so, these workers will gain the direct benefit of getting access to social security benefits which come with working in the organized sector.

Features of PMRY

The features of Pradhan Mantri Rozgar Yojna are as follows:

• Coverage: the PMRY scheme offers business, service and industry sector coverage of Rs.2, Rs.5, and Rs.15 lakh respectively. This coverage can come in handy for businesses that are just starting in the space, as such coverage can be used for a flurry of purposes which can help the entrepreneur to operate the business efficiently and expand. PMRY loan eligibility criteria can vary for different businesses, however a major chunk of small businesses can access and enjoy the benefits attached to the scheme.
• Collateral: this scheme offers collateral-free loans up to Rs.1 lakh. For small businesses, arranging for a collateral to avail a loan can be difficult as many entrepreneurs may not have access to any pledging security to begin with. Also, for businesses that do have access to such securities, pledging a collateral to avail smaller loans may not make sense. Hence, a scheme where the business can avail a collateral free loan may come as a boon.
• Repayment: when it comes to repayment, the beneficiary has an extended repayment tenure of 3 to 7 years from the time of moratorium. This extension in repayment means that the business can enjoy and utilize the capital for a longer timeframe without worrying too much about the repayment. Extension in repayment coupled with the moratorium means a chance for businesses to attain a higher operation and capital efficiency.
• Additional training: those who apply for the PRMY scheme and borrow from it will receive a 15 to 20 day training period. This training period is to help the individual know the ins and outs of setting up their own business. The training aims to equip the borrowers with the right knowledge of where and how to invest their funds in establishing their business/organization successfully. This training is not only beneficial for the budding entrepreneurs but also for seasoned entrepreneurs who’d like to equip themselves with the latest industry trends and knowledge in order to achieve success.
• Body: The main body of this Government Scheme is the Development Commissioner which is under the Ministry of Small Scale, Rural, and Agro Industries. This means that the scheme benefits are directly coming from an authoritative body under the government of India. Hence, the entrepreneurs can enjoy peace of mind, as government backed schemes usually don’t have the sole aim of generating profit but also to serve the public.
• EMIs: The borrower can receive their loan fund in EMIs (Equated Monthly Instalments). This eases their ability to establish and initialize their business. Similarly, the loan amount can be repaid in similar EMIs such that it does not cause the newly established firm/business to face financial pressure or deficit. EMIs also gives the businesses headspace to focus on operations, as unlike private lending, with EMIs both principal and interest component of the loan is repaid over the loan term. This can allow the entrepreneurs to have the bandwidth to run business efficiently while not worrying about the principal payment at the end of the loan term.
• Implementation: The Pradhan Mantri Rozgar Yojna is implemented at the State level. This means that the applications are managed and tracked at the state level. Hence, it allows the schemes to run more efficiently while enabling it to reach the businesses in need. One of the biggest benefits of the scheme implementation at state level is that the businesses in each and every state are able to enjoy the benefits and the disbursement is not given majorly to only businesses in a particular state or province.
• Exception: This scheme is implemented in all cities except the 4 metropolitan cities of Chennai, Delhi, Mumbai and Kolkata. The reason behind this is that the government aims to deliver benefits to businesses operating in the tier 2/3 cities and the rural areas as they may not have access to the same market and opportunities as compared to the businesses operating in the metropolitan region of the country.
  These 4 metropolitan cities are the ones who are in charge of implementing the PRMY scheme all across the country.
• Monitoring: Upon availing the PMRY, the State Lever PRMY Committee is in charge of monitoring the progress of the scheme. The committee checks the progress every quarter from the day of implementation. Relevant key performance metrics are put in place to gauge the progress and the magnitude of change is recorded on a month on month basis. The committee ensures that the data derived from the monitoring activity is then sent to the head office, where this data is analyzed to turn into actionable insights to improve the offering under this scheme.
• Subsidy: The Pradhan Mantri Rozgar Yojna also provides a subsidy which is 16% of the cost of the project for which the loan is being taken. The maximum cost for the project is capped at Rs.12,500 for each individual. This can be really helpful for budding entrepreneurs in the rural region who wish to start their business with a little capital in hand. Subsidies in starting small business operations can go a long way as it can give a sense of security to the entrepreneur, and help them have breathing space to operate the business efficiently.

PMRY Implementation in the North-Eastern Regions of India

The north-eastern regions of India consist of places like Himachal Pradesh, Jammu and Kashmir, Uttaranchal, and other such north-eastern regions of India.

These places have special measures and relief norms under which the residents of these regions can avail the Pradhan Mantri Rozgar Yojna.

• Subsidy: the subsidy component for these regions is at 15% and has an upper cap of Rs.15,000. The higher subsidies offered in these regions is aimed at providing higher assistance to the small business owners to promote entrepreneurship with an aim to boost local economy.
• Assistance: The assistance eligibility which comes with the project has a costing of up to Rs.2 lakh. This assistance can be a great offering to the budding entrepreneurs, as it safeguards them and helps them start business with less perceived risks.
• Percent of Margin Money: The amount of margin money can vary from applicant to applicant. Depending on the cost of the project it can range from 5% to 12.5%.

Eligibility Criteria

The eligibility for the Pradhan Mantri Rozgar Yojna scheme are as follows:

• The target employees of the PRMY are those who have a per month earning of less than or equal to Rs.15,000. Those who have a monthly wage of more than Rs.15001 are not eligible for the PMRY scheme. This is to ensure that the benefit is passed on to the section of the society with the least income, this will help in equitable growth of the economy as a whole and decrease the income disparity in the society.
• Educated employees and unemployed people must be between the ages of 18 and 35 years. The age criteria is put in place to enable the youth of the country to participate in the economy by earning more money as they currently are. As people falling in the age bracket of 18-35 contributes to the major chunk of the employable workforce.
• The minimum educational qualification must be an 8^th standard pass. Although the educational qualification may not be the biggest roadblock in getting into the small business sector, the education criteria is put in place to ensure qualified individuals wanting to get employment can enjoy the support from this scheme.
• The applying individual must be a permanent resident of his or her area for 3 to 7 years. As the scheme is implemented at a state level, to ensure that the scheme benefits are reaching to the residents of the state, this criteria is enforced. This weeds out frequent migrants, as these migrants may have taken the benefit in another state and are now applying for the same benefit in a different state. Hence, this restriction helps distribute benefits to unique individuals.
• The family income of the beneficiary should be less than Rs.40,000 per month. To ensure that the scheme benefit is reaching the needy, who may not have any other funding source to start a business.
• For employers to be eligible, they must have added new employees to their establishment. These new employees must have an Aadhaar seeded Universal Account Number and have not worked in any prior Employer’s Provident Fund Organization or EPFO.
• The registered EPFO must have a Labor Identification Number or LIN; allotted under the Shram Suvidha Portal.
• The applicant should have permanent residency in the area for a minimum for 3 years.

Steps to Apply Online for the Pradhan Mantri Rozgar Yojna

In order to apply for the PMRY, the following steps need to be followed:

Step 1: Visit the official Pradhan Mantri Rozgar Yojna website at www.pmrpy.gov.in

Step 2: Download the application file for the scheme and proceed to fill it out with the correct and relevant information – https://nalbari.gov.in/sites/default/files/swf_utility_folder/departments/nalbari_epr_amtron_in_oid_2/menu/document/pmry_form_0.pdf

Step 3: Scan and upload the required documents as images and attach them with the filled out application form.

Step 4:  Submit the filled application form along with the desired documents to the respective bank. After successful submission, the bank will get in touch with you with the details of the loan in due time.

Scheme Details Doc – https://labour.gov.in/sites/default/files/PMRPY%20Revised%20Guidelines%20ver%202-1%20%282%29.pdf

Documents Required

In order to apply for the PMRY, the following documents need to be gathered:

• Proof of identity (driver’s license, PAN card, passport, etc.) : This is the basic requirement to do KYC of the applicant.
• Proof of Date of Birth- SSC certificate/ TC from school from which the applicant has graduated : To determine the age of the applicant as the scheme has an age limitation of 18 to 25 years.
• MRO issued caste certificate (if applicable) : This is to ensure or keep a record of the beneficiaries, and to determine if the scheme is reaching all sections of the society or not, and the penetration level.
• Certificate of Income : As the scheme is geared towards providing assistance to the poor and needy to enable them to start a business, a certificate of Income is mandatory to determine that the applicant does not come from a high income background, which is not allowed under the scheme.
• Proof of residency for a minimum of 3 years : As the scheme is implemented at a state level, proof of residency for a minimum of 3 years is required to ensure that the benefit is reaching to the resident of the state.
• EDP Certificate of Training
• Certificate of experience, qualification and technical skills : This requirement is put in place to make sure that the applicant is equipped with necessary training and skills which can help translate this opportunity into employment.
• Copy of the Proposed Project Profile

Changes made to the Pradhan Mantri Rozgar Yojna

Over the years, there have been certain changes to the PMRY. These changes have been made to better accommodate the needs of the potential applicants. These changes also offer better eligibility opportunities to the diverse community spread all over the country.

• The upper age limit for the people of the north-eastern regions of Indian has been raised from 35 years to 40 years.
• For those women and those belonging to the Scheduled caste or Scheduled Tribe, the maximum age to apply for the scheme has been raised from 35 years to 45 years.
• The financing for group eligibility has been increased to a modest Rs.5 lakh.
• The minimum educational qualification for availing the PMRY is now an 8^th standard graduate instead of a class10 graduate.
• The Pradhan Mantri Rozgar Yojna will now also include allied activities and agriculture except for direct agricultural activities like use of manure and its purchase, raising of crops etc.
• The previous upper limit for a project cost was rs.1 lakh. This amount has been increased to Rs.2 lakh.

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