All About Pradhan Mantri Rozgar Yojana (PMRY)

Pradhan Mantri Rozgar Yojana (PMRY) was a government scheme in India aimed at promoting self-employment among educated unemployed youth. Please note that schemes and policies may be subject to updates, changes, or new iterations, and it’s advisable to check with official government sources for the latest information. Below are the key details about PMRY based on information available up to my last update:

Objective:

  • PMRY aimed to provide financial assistance to educated unemployed youth for setting up small enterprises or businesses, thereby creating self-employment opportunities.

Implementing Agencies:

  • The scheme was implemented by the District Industries Centers (DICs) in collaboration with other concerned agencies at the district level.

Financial Assistance:

  • PMRY provided financial assistance in the form of a subsidy and bank credit. The subsidy component was intended to supplement the bank credit and varied based on the nature of the project.

Eligibility Criteria:

  • Individuals in the age group of 18 to 35 years who were educated up to at least the 8th standard were eligible to apply.
  • The annual family income of the beneficiary was considered for determining eligibility.

Nature of Projects:

  • PMRY supported a wide range of economically viable and technically feasible projects in the manufacturing, service, and business sectors.

Subsidy Component:

  • The subsidy amount under PMRY was a certain percentage of the project cost, subject to a maximum limit. This subsidy was intended to encourage entrepreneurship and make it easier for beneficiaries to establish their businesses.

Bank Loan:

  • The financial assistance provided under PMRY included a bank loan component. The loan amount was determined based on the project cost and the contribution of the beneficiary.

Training Component:

  • To enhance the entrepreneurial skills of the beneficiaries, training was an integral part of PMRY. Candidates were required to undergo skill development training before setting up their enterprises.

Application Process:

  • Interested candidates could apply through the District Industries Centers (DICs) by submitting project proposals. These proposals were then scrutinized for technical and financial feasibility.

Monitoring and Implementation:

  • The implementation and monitoring of the scheme were carried out at the district level. Regular follow-ups were conducted to ensure the successful establishment and functioning of enterprises.

It’s important to note that the information provided here is based on the status of the scheme as of my last update in January 2022. Given that government policies and schemes may undergo changes, I recommend checking with official government sources or the Ministry of Micro, Small and Medium Enterprises (MSME) for the latest and most accurate information regarding the Pradhan Mantri Rozgar Yojana (PMRY).

All details on Credit-Linked Capital Subsidy Scheme

Credit Linked Capital Subsidy Scheme or CLCSS is meant for MSMEs. It has been introduced by the Ministry of Micro, Small and Medium Enterprises to boost production of small scale industries by providing them access to subsidised capital. Under this scheme, eligible enterprises can enjoy a capital subsidy of 15% on loan availed from a financial institution. 

Main Objective of Credit-Linked Capital Subsidy Scheme

he objective of the Scheme is to facilitate technology up-gradation in MSEs by providing an upfront capital subsidy of 15 per cent (on institutional finance of upto Rs 1 crore availed by them) for induction of well-established and improved technology in the specified 51 sub-sectors/products approved.

  1. Financial Support:
    • The scheme provides a subsidy linked to the credit availed for the purchase of eligible machinery and equipment.
  2. Eligibility:
    • Small-Scale Industries (SSI) and Small and Medium Enterprises (SMEs) are typically eligible for the CLCSS.
  3. Scope:
    • The scheme covers various sectors, and the list of eligible machinery and equipment is outlined by the government.
  4. Implementation:
    • Financial institutions and banks play a crucial role in implementing the scheme. They provide credit linked with the subsidy.
  5. Application Process:
    • Entrepreneurs or business owners interested in availing the benefits of CLCSS usually need to apply through the participating financial institutions.
  6. Subsidy Amount:
    • The subsidy is calculated as a percentage of the eligible investment in plant and machinery, subject to a maximum limit.
  7. Technology Upgradation:
    • The scheme encourages businesses to adopt new and improved technologies, thereby enhancing productivity and efficiency.
  8. National Small Industries Corporation (NSIC):
    • NSIC, a government agency, is often involved in the implementation and monitoring of the scheme.

It’s important to check the latest guidelines, eligibility criteria, and subsidy rates as they may have been updated or modified after my last knowledge update. For the most recent and accurate information, you should refer to the official government websites or contact relevant government departments or financial institutions

MSME Loan Schemes from SIDBI

SIDBI or Small Industries Development Bank of India, works for the growth and development of entrepreneurship and industries in India. The organization has been actively involved in managing various esteemed government projects, demonstrating its commitment and enthusiasm.

One of the notable schemes managed by SIDBI is the PM SVANidhi Scheme, which aims to support and uplift the livelihoods of street vendors. This scheme provides financial assistance, access to credit, and other resources to street vendors, enabling them to improve their businesses and contribute to the economy.

SIDBI is also involved in initiatives to enhance infrastructure in the Animal Husbandry sector through the AHIDF Scheme. This scheme focuses on providing financial support by way of interest subvention for the development of infrastructure, such as cattle feed plants, milk processing units, and veterinary hospitals, among others. By bolstering the animal husbandry sector, SIDBI contributes to the overall growth of rural economies and employment opportunities.

In line with supporting the national livestock, SIDBI actively participates in the National Livestock Mission. This mission aims to enhance livestock productivity, improve animal health and welfare, and promote sustainable practices in livestock farming. SIDBI’s involvement in this mission ensures the availability of financial resources and guidance to the stakeholders involved in livestock development.

Launched in 2015, SMILE is governed by the Small Industries Development Bank of India (SIDBI). The aim of this scheme is to provide soft loans, meet the required debt-equity ratio for the establishment of new MSMEs, and also to enable the growth of existing ones. Below mentioned are the MSME loan schemes offered under SIDBI

  1. General Purpose Term Loan
  2. Secured Business Loans for MSMEs
  3. SIDBI and Google Partnership for Assistance to Micro Enterprises (SANGAM)
  4. SIDBI’S Term Loan to enhance the production of MSMEs (STEP) Scheme
  5. SIDBI Assistance to Export Oriented MSMEs under UBHARTE SITAARE PROGRAMME
  6. SIDBI Thematic Assistance for Purchase of Capital Assets in New Enterprises (STHAPAN)
  7. Assistance to Re-Energize Capital Investments by SMEs (ARISE)
  8. SIDBI Term-Loan assistance for Rooftop Solar Photovoltaic (PV) Plants (STAR)
  9. SIDBI – Loan for Purchase of Equipment for Enterprise’s Development Plus (SPEED PLUS)
  10. SIDBI – Loan for Purchase of Equipment for Enterprise’s Development (SPEED)
  11. Working Capital (Cash Credit)
  12. TOP Up Loan for Immediate Purposes (TULIP)

Pradhan Mantri MUDRA Yojana (PMMY)

The Pradhan Mantri Mudra Yojana launched in 2015 aims at providing credit of upto Rs 10 lakh to small entrepreneurs and act as a regulator for Micro-Finance Institutions (MFIs). Mudra Loan targets young educated or skilled workers and entrepreneurs including women entrepreneurs.

The scheme is designed to promote and ensure access of financial facilities to Non-Corporate Small Business Sectors (NCSBS) that will turn them into instruments of GDP growth and employment generation. The loans are easily accessible in three categories- Shishu, Kishore and Tarun to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth. For more details on scheme please visit https://www.mudra.org.in/

Eligibility

Any Indian citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than Rs. 10 lakh can approach either a bank, MFI, or NBFC for availing the Mudra loan.

Loan Types -Amount

Maximum loan amount : Upto Rs 10 lacs

  • Loans upto Rs.50,000 are categorised as SHISHU
  • Loans from Rs.50,001 to Rs.500,000 are categorised as KISHORE
  • Loans from Rs.500,001/- to Rs.10,00,000/- are categorised as TARUN

What are the documents required for Mudra Loan?

ID Proof: Self Attested copy

  • Adhar
  • PAN
  • Driving License
  • Voter ID
  • Passport
  • ID Card issued by Government Departments

Address Proof: Self Attested

  • Adhar
  • Passport
  • Voter Id
  • Utility Bill- Electricity, Water, Gas, Telephone etc
  • Domicile Certificate
  • Latest Account Statement or Bank Passbook

Proof of Business

  • Registration Certificate
  • License Certificate
  • MSME Udyam Registation
  • GST Registration Certificate

Other Important Documents required to apply Mudra Loan

  • Photographs of Business Owners and Partners
  • Cast Certificate- SC/ST/OBC
  • Balance Sheet & ITR of last 3 years
  • GST Return
  • Bank Statement of 6 months
  • Sales/Revenue Details
  • Estimated balance sheet of next one year
  • Project Report or Business Report for getting loan