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How to apply for pmry loan

how to apply for pmry loan


The Government of India have formulated a scheme called "Prime Minister's Rozgar Yojana (PMRY)" for Educated unemployed youth which was launched on 2nd October 1993. The scheme is to provide sustained employment to the educated unemployed youth in their own micro enterprises. These enterprises covers manufacturing, service and business ventures. The beneficiary selected under the scheme will be provided training and other entrepreneur development assistance by the Government. The training is a compulsory component for all ventures and will last for 10/20 days.


1. Age:

For all educated unemployed 18-35 years in general; with 10 years relexation for SC/STs, Ex-Servicemen, Physically Handicapped and Women.

2. Education:

Eighth Standard passed, Preference will be given to those who have been trained in any trade in Government recognized/approved Institution for a duration not less than six months.

3. Family Income:

Should not exceed Rs.40,000/- per annum

4. Residence:

Permanent resident of the area for at least 3 years. (In case of newly married women applicants, the resident criteria is applied to the in-laws/husband)

5. Activities Covered:

All economically viable activities excluding direct agriculture operations like raising crop, purchase of manure etc.

6. Quantum of Loan:

Maximum of Rs.1 lakh for Business activities and Rs.2 lakhs for other activities. Two or more eligible persons can join together and avail upto Rs.10 lakhs under Partnership concern.

7. Subsidy:

15 percent of the loan amount or Rs.7,500/- whichever is less.

8. Margin Money:

Bank 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.

9. Collateral:

No collateral security for the project upto Rs.1 lakh in case of Business & Service Sectors. For Industrial sector, no collateral security is required for project upto Rs.2 lakhs.

10. Interest:

Normal bank rate of interest on date shall be charged.

11. Repayment Schedule:

May range between three to seven years after an initial moratorium period as may be prescribed by the bank.

12. Training:

20 days training will be provided for the Industrial activity with a stipend of Rs.300/-

10 days training for Business and Service activities, with a stipend of Rs.150/-.

13. Reservation:

22.5% reservation for SC/ST

27% for other Backward Classes (OBC).

Preference will be given to weaker sections including women.

14. Application Form for PMRY Loan (Download )

15. Submission of filled in application:

No last date has been fixed, can be submitted at any time during the office hours.

16. Conduct of Interview and forwarding of application to Bank

Filled in applications received by this office will be scrutinized and called for interview once in a quarter. The application of successful candidates will be forwarded to the respective banks for further action.

17. Disbursement of Loan:

Sooner the beneficiary completes the formalities required by the banks in respect of his project and also completes the training conducted by DIC in coordination with Community College, Puducherry, the disbursement of loan takes place.

18. For more details and clarification, please contact

The Functional Manager,

District Industries Centre,



Phone No:2248391, 2249392

* A person who has already availed financial assistance under any subsidy linked scheme run by the Central or State Government may not be considered for assistance under PMRY.

Category: Credit

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