All to know about Pradhan Mantri Rozgar Yojana with its purpose

The Government of India launched the Pradhan Mantri Rozgar Yojana (PMRY) scheme in 1993 with the objective to create increased employment opportunities for Indian citizens. The primary beneficiary of this scheme is the unemployed educated mass. 

Under such an initiative, this pool of young talent can avail of financial assistance and required field-related training to start their business in the organised sector. The PM Rojgar Yojana is expected to be especially beneficial now, given the high rate of unemployment post the pandemic and worldwide lockdown. Read on to get an in-depth knowledge about this advantageous scheme.

Key characteristics of PM Rojgar Yojana

The PM Rojgar Yojana comes with the following features.

Project cost

This government-aided scheme provides cost coverage for loans of up to Rs.2 lakh for projects in the business sector. For those in industry and service sectors, the cost generated can range up to Rs.5 lakh. Around Rs.1 lakh of the principal is available without pledging collateral.

Margin money

Individuals applying under the Pradhan Mantri Rozgar Yojana scheme are liable to pay a certain amount of margin money to their lender. This amount can range from 5% to 12.5% of the total project cost, depending on the financial institution.


This scheme also offers up to 15% of total project expenses as subsidy amount to beneficiaries. The eligible project cost per individual is capped at Rs.12,000 for this purpose. Note that the total amount formed by margin money and subsidy must be within 20% of total project cost. 

Additional training

For successful implementation of acquired funds, the PMRY scheme also offers work-related training to beneficiaries. Potential entrepreneurs in the business and service sectors are provided training for 7 to 10 days. Those in the industrial sector will receive 15 to 20 days of training. Individuals belonging to minority groups can also avail of the Padho Pardesh scheme to pursue further business-related education abroad. In case you have already applied for one, know how to manage your finances better while studying abroad.

Loan tenor

Beneficiaries can choose any repayment tenor from 3 to 7 years, including their moratorium period.

Repayment option

This scheme facilitates monthly fund transfer to channelize business costs more efficiently. Borrowers can avail a similar EMI system during their repayment. This prevents straining the start-ups’ finances.


The PM Rojgar Yojana committee is in charge of monitoring the scheme’s operations at the state level. On the other hand, the 4 largest metropolitan cities are responsible to see to PMRY’s efficient implementation throughout the country.

Due to this, residents of these metropolitan cities of Kolkata, Chennai, Mumbai and Delhi cannot avail of this scheme’s benefits. However, if you are looking for business or education loan in any of these areas, there are other alternatives.

Several financial institutions offer loan against property for education. Borrowers can also utilise these funds to finance a new business and its operations.

Who can qualify for the PMRY scheme?

Authorities sanction subsidies under PMRY scheme only to applicants meeting the following eligibility parameters.

  • Age: Must be 18-35 years.
  • Credit history: Should not include any history of default.
  • Industry type: Service and manufacture sectors.
  • Residence: Applicant must be residing in the given address for minimum 3 consecutive years.
  • Monthly family earning: Should not exceed Rs.40,000.
  • Educational qualification: Must have completed education at least until the 8th standard.

Applicants willing to fund agricultural activities or the ones who have previously availed of any other government scheme cannot benefit from PM Rojgar Yojana.

In such cases, individuals can qualify for a loan against property by meeting these simple eligibility criteria.

How to apply for an education loan against property?

Individuals willing to pursue further study to start an enterprise can apply for a lap loan for education in the following simple steps.

  1. Visit your lender’s website and fill in the application form accurately.
  2. Submit all required documents to the HFC’s representative when they respond to your loan request.
  3. Receive funds within 4 working days upon approval.

Several financial institutions also pre-approve such loans for instant and simple disbursal. These offers are available on a range of financial products, including loan against property and home loans. Check your pre-approved loan offer before applying by submitting a few details, including name and phone number.