Sl.
No.

Parameters for eligibility  

Description

1.

Age

(i)   18 to 35 years for all educated unemployed.
(ii) 18 to 40 for all educated unemployed in North-East States,  Himachal Pradesh, Uttarakhand and J&K.
(iii) 18 to 45 years for Scheduled Castes /Scheduled Tribes, Ex- servicemen, Physically Disabled and Women. 

2.

Educational Qualification

VIII pass. Preference will be given to those who have been trained for any trade in Government recognised/ approved institutions for duration of at least six months. 

3.

Family income

Neither the income of the beneficiary along with the spouse nor the income of parents of the beneficiaries shall exceed Rs.1,00,000/- p.a. 

4.

Residence

Permanent resident of the area for atleast 3 years.   (Relaxed for married men in Meghalaya and for married women in rest of the country.  For married men in Meghalaya and for married women in rest of the country, the residency criteria applies to the spouse or in-laws. 

5.

Defaulter

Should not be a defaulter to any nationalized bank/ financial institution/co-operative bank. Further, a person already assisted under other subsidy linked Government schemes would not be eligible under this scheme. 

6.

Activities covered

All economically viable activities including agriculture and allied activities but excluding direct agricultural operations like raising Crop, purchase of manure etc. 

7.

Project Cost

Rs.2.00 lakh for business/ service sector and Rs.5.00 lakhs for industry sector, loan to be of composite nature.  If  two or more eligible persons joins together in a partnership, project upto Rs.10.00 lakhs are covered.  Assistance shall be limited to individual admissibility. 

Self Help Groups can be considered for assistance under the Scheme provided:

• Educated Unemployed Youth satisfy the eligibility criteria laid down under the Scheme volunteer to form SHG to set up self-employed ventures (Common Economic Activity).
• A Self Help Group may consist of 5-20 educated unemployed youth.
• No upper ceiling on project cost.
• Loan may be provided as per individual eligibility taking into account requirement of the project.
• SHG may undertake common economic activity for which loan is sanctioned without resorting to onward lending to its members.
• The subsidy ceiling for Self Help Group is Rs. 15,000/- per beneficiary subject to a maximum of Rs. 1.25 lakh per Self Help Group.
• Subsidy may be provided to the SHG as per the eligibility of individual members taking into account relaxation provided in North Eastern States, Uttarakhand, Himachal Pradesh and Jammu & Kashmir.
• Required margin money contribution (i.e. subsidy and margin to be equal to 20 per cent of the project cost) should be brought in by the SHG collectively.
• The exemption limit for obtention of collateral security will be Rs.5.00 lakh per borrowal account for projects under Industry Sector.  Exemption from collateral will be limited to an amount of Rs.2.00 lakh per member of SHG for projects under Service & Business Sectors. Banks may consider enhancement in limit of exemption of collateral in deserving cases.
• Implementing agencies may decide necessity of predisbursal training for all the members/majority of the members of the group.

8.

Subsidy & Margin money

i) Subsidy will be limited to 15% of the project cost subject to ceiling of Rs.12,500/- per entrepreneur. Banks will be allowed to take margin money from the entrepreneur varying from 5% to 16.25% of the project cost so as to make the total of the subsidy and the margin money equal to 20% of the project cost.

For North Eastern States, Himachal Pradesh, Uttrakhand and J&K.

ii) Subsidy @ of 15% of the project cost subject to a ceiling of Rs.15,000/- per entrepreneur for north-eastern States, Himachal Pradesh,Uttaranchal and Jammu & Kashmir. Margin money contribution from the entrepreneur may vary from 5% to 12.5% of the project cost so as to make the total of the subsidy and the margin money equal to 20% of the project cost. 
 

9.

Collateral

No collateral for units in industry sector with project cost upto Rs.5.00 lakh (the loan ceiling under the PMRY).  For partnership projects under Industry Sector, the exemption limit for obtention of collateral security will be Rs.5.00 lakh per borrower account.  For units in service and business sector no collateral for project upto Rs.2.00 lakh. Exemption from collateral in case of partnership project will also be limited to an amount of Rs.2.00 lakh per person participating in the project cost. 

10.

Rate of interest

& Repayment

Schedule

Normal  rate  of  interest  shall  be charged.  Repayment schedule may range from 3 to 7 years after an initial moratorium as may be prescribed.                                                               

11.

Reservation

Preference should be given to weaker sections including women. Assistance to SC/ST beneficiaries should be targeted in such a manner that they are benefited in proportion to their population in the respective district/State. However, the number of SC/ST beneficiaries should not be less than 22.5% and 27% for Other Backward Class (OBCs) as is currently envisaged in the PMRY. In case SC/ST/OBC candidates are not available, States/UTs Govt. will be competent to consider other categories of candidates under PMRY.  

12.

Training

Each entrepreneur whose loan is sanctioned is provided training as per details given below:

i) For industry sector:

      Duration:15-20 working days.

      Stipend: Rs.750/-

      Training expenditure: Rs.1750/-

ii) For service and business sector:      

     Duration:7-10 working days.

     Stipend: Rs.375/-

      Training expenditure: Rs.875/-

13.

Motivational campaigns

To improve the success rate of eligible applicants, States/UTs will be allowed reimbursement of cost of counseling and guiding the applicants @ Rs.200/- per applicant, for 125 per cent of the allocated target of cases.

14.

Recovery of loans

(i) Panchayati Raj Institutions like Gram Panchayats be empowered to identify and sponsor candidates located in the same area to the District Task Force Committee so as to ensure disbursement of loan to genuine persons and better recovery of loan. 

(ii) To reduce the level of sickness/closure of PMRY units, the District Level Selection Committee/Task Force Committee be made accountable for the proper scrutiny of applications and selection of viable projects.    

15.

Implementing Agency

The District Industry Centres and Directorate of Industries are mainly responsible for implementation of the Scheme along with the banks.