Parameter

  Age 

I)  18 to 35 years for all educated unemployed.

ii)  18 to 40 for all educated unemployed in North-East States.

iii)  18 to 45 years for Scheduled castes/Scheduled Tribes, Ex-servicemen, Physically Disabled and Women.

Educational Qualification

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

Family Income

Neither the income of the beneficiary along with the spouse nor the income of parents of beneficiaries shall not exceed Rs. 40,000/- per annum.

Residence

Permanent resident of the area for at least 3 years. (Relaxed for married women. In case of married women the residency criteria applies to her husband or in-laws.)

Defaulter

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

Activities covered

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

Project Cost

Rs. 1.00 lakh for business sector. Rs. 2.00 lakhs for other activities, 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.

Subsidy & Margin money

Subsidy will be limited to 15% of the project cost subject to ceiling of Rs. 7,500/- 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.  

Collateral

No collateral for project upto Rs. 1 lakh. Exemption from collateral in case of partnership project will also be limited to an amount of Rs. 1.00 lakh per person participating in the project.

Rate of Interest & Repayment Schedule

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

Training & other assistance

The training expenses and operational expenditure to be covered within the ceiling of Rs. 2,000/- per case. The existing system of revising the scale of expenditure in consultation with the Finance for various activities and flexibility would be available to the implementing agencies of the State and Central levels subject to condition that over all training and operating expenses remain within the ceiling of Rs. 2,000/- per case sanctioned. 

Implementing Agency

The district Industry Centres and the Directorates of Industries shall mainly be responsible for scheme implementation along with banks.

Linkages of targets with recovery

Basic minimum targets based on the population and the number of educated unemployed. Additional targets would be linked to the recovery of loans sanctioned, past performance of sanctions or special circumstance prevailing the State/UT.

Reservation

Preference should be given to weaker sections including women. The scheme envisages 22.5% reservation for SC/ST and 27% for other Backward Class (OBCs). In case SC/ST/OBC candidates are not available. States/Uts govt. will be competent to consider other categories of candidates under PMRY.