India, home to 1.41 billion people, according to the “World Population Review” report, has its largest youth population. Around 65% of the Indian population is under the age of 35 years, making youth unemployment a critical issue. The Government of India has introduced several schemes to address these challenges. One of these is the PMRY Scheme (Prime Minister Rozgar Yojana).
The Central Government in India launched the PMRY in 1993 to promote entrepreneurship among the youth.
This article explores the details of the PMRY scheme to understand how the scheme is empowering Indian youth.
How PMRY Empowers Youth in India
The scheme aims to employ Indian youth to make them self-reliant by helping them start their ventures, especially in rural areas. The target of this initiative is setting up nearly 7 lakh enterprises and creating consequent employment opportunities for youth.
● Training and Skill Development under PMRY Scheme
With the association of reputed non-governmental institutions under the PMRY scheme, the government helps eligible youth in entrepreneurship training and preparation of project profiles.
● Financial Assistance under PMRY Scheme
The PMRY scheme provides financial assistance to eligible individuals. They can get funds at a reasonable interest rate to start their business ventures and utilise them in trading, service or manufacturing businesses. It can assist in setting up self-employment ventures across economically viable projects (except direct agricultural operations).
Vital Eligibility Aspects of PMRY
An individual already a beneficiary under other linked Government schemes or subsidies can not get assistance under this scheme. Other crucial aspects are as follows:
1. Funding: Depending on the nature of the business, the maximum project cost differs under the scheme. For the Business Sector, it is Rs 2 lakhs. For the Service Sector, it is Rs 5 lakhs. For the Industry Sector, it is Rs 5 lakhs. The Reserve Bank of India (RBI) determines the interest rate, which is subject to change at any time. Financial assistance under this scheme may only be adequate for some. Individuals can consider other funding options, like a loan against property or a balance transfer facility for controlled borrowing costs.
2. Age Limit: All educated unemployed individuals in the age group of 18-35 years can apply under the scheme. There is relaxation for candidates from certain states and categories.
3. Educational Qualification: Individuals who have passed the 8th standard can apply under this scheme. It was an earlier 10th pass. Trained individuals from Government-approved institutions in any trade for at least six months get preference.
4. Residence: The beneficiary should be a permanent resident in the current area for at least three years.
5. Repayment Schedule: The repayment schedule varies from 3 to 7 years for different sectors.
6. Collateral: Individuals seeking financial aid in the industry sector for a project cost of up to Rs 2 lakh do not have to pledge any collateral. Also, projects costing up to Rs 1 lakh under the service and business sector need not pledge any collateral.
7. Income: The total income of the beneficiary’s family should be at most Rs 40,000 per month.
8. Training: Individuals must complete the training provided under the scheme. The training duration for the industry sector is 15-20 working days; for the service and business sector, it is 7-10 working days.
This way, the PMRY scheme promotes the entrepreneurial spirit among Indian youth and assists them financially. With simple eligibility requirements, more individuals can fund their business ventures. Apart from the PMRY scheme, individuals can consider loans against their property at a low-interest rate to fund their venture. Loan against property balance transfer facility with reputed lenders can also help to reduce the interest outgo.