Launched in 1993, Pradhan Mantri Rojgar Yojana is a central government scheme that aims to provide self-employment opportunities to unemployed Indian youths. This government scheme provides necessary financial assistance to more than 10 lakh young individuals in the country.
Under this scheme, an individual can avail of a loan amount up to Rs.5 lakh to set up a business in the service, industry, and manufacturing sectors. The following sections will provide a step-by-step guide to apply for this scheme.
Steps to apply for PMRY
To apply for this scheme, candidates have to follow a few steps.
1st: Visit the official portal of Prime Minister Rojgar Yojana.
2nd: Secondly, download the application form.
3rd: Fill the form with accurate details.
4th: Submit the duly filled application form to the concerned financial institution included under PMRY.
5th: Finally, that institution will contact the beneficiary concerning the PMRY scheme application.
Before moving ahead with the PMRY applications, an applicant should know the eligibility beforehand to decrease the chances of rejection.
Eligibility criteria for PMRY
Here are some of the requirements that one has to meet for securing a loan under PMRY:
- All applicants should have a minimum qualification of 8th standard or its equivalent.
- Candidates must be between the age group of 18 to 35 years.
- The family income of the applicant must not exceed more than Rs.40,000.
- Applicants shouldn’t be loan defaulters in any financial institution.
- The scheme covers three sectors, which are service, manufacturing and trade.
- Applicants who fall under economically backward sections such as SC, ST and others can enjoy reservation schemes.
Applicants looking to apply for a loan through Pradhan Mantri Rojgar Yojana might face challenges due to strict eligibilities. However, for individuals searching for other options, a loan against property is a good alternative.
A loan against property provides several benefits for a borrower and can be used for any purpose.
Features of Loan against Property
- Easy eligibility norms
A loan against property has less stringent eligibility criteria than the scheme mentioned above. However, applicants need to submit a few documents like KYC, income proof, and others to avail of the product. Thus any applicant can qualify for a loan against property by meeting simple eligibility criteria.
- Availability of longer tenor
One of the major benefits of loan against property is its extended tenor. Applicants can enjoy a maximum tenor of 20 years to pay the amount. This means that the interest rate on loans against property will be substantially lower. As a result, the EMI amount will be easy on the pocket for the borrowers; this will help them plan their finances better.
It is essential to determine an ideal tenor for a loan against property so as to enjoy convenient repayment.
- No restrictions on usage
Candidates availing of a loan against property can use the amount for a variety of purposes. Unlike the PMRY scheme, the amount can be used to finance education, expand a business, or even to construct homes.
- Higher loan amount
The amount of loan against property is disbursed against collateral. The lender often provides an LTV ratio of around 75% to 90% of the property value depending on the condition and location of the pledged property.
- Fast processing
Keeping all the documents ready beforehand will make the application process less tedious.
Several financial institutions offer pre-approved offers to streamline the loan application process. These tailored offers are available on selected financial products like home loan, loan against property, and others. Individuals can enter their names and contact numbers to check their pre-approved loan offers.
Thus, to apply online for Pradhan Mantri Rojgar Yojana 2021, candidates have to follow the simple steps mentioned above and will also have to meet the eligibilities.