PRIME MINISTER ROJGAR YOJANA

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The Scheme launched on 2nd October, 1993 is designed to create and provide sustainable self-employment opportunities to one million educated unemployed youth in the country during the 8th Plan Period. The Scheme is continuing.

Salient Features

A.

ELIGILITY

Any unemployed educated person fulfilling following conditions.
(i) Age
1. Between 18 to 35 years all uneducated youth.
2. Between 18 to 40 years for educated unemployed youth in the North-Eastern States.
3. 18-45 years for SC/ST, Ex.Servicemen, Physically Handicapped  men and Women.
(ii) Qualification

VIII Passed. Preference will be given to those who have been trained from any recognized/approved Institution for duration of at least six months.

(iii) Residency Permanent resident of  the area for at least 3 years.
(iv) Family Income Upto Rs. 40000/- Annum of the beneficiary and spouse and upto Rs. 40000/- for the parents separately.
(v) Defaulter Should not be a defaulter to any nationalized bank/financial institution.
B. ACTIVITIES

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

C. PROJECT COST COVERED
Rs. 1.00 lakh for business sector.
Rs. 2.00 lakhs for other activities.

Loan to be composite nature. If  two or more eligible persons join together in a partnership, Projects up to Rs. 10 lakhs are covered. Assistance shall be limited to individual admissibility.

D. MARGIN MONEY SUBSIDY.
I.

Subsidy will be limited to 15% of the project cost subject to ceiling of Rs. 7500/- per entrepreneur. Bank will be allowed to take margin money from the entrepreneur varying from 5% to 16.5% of the project cost so as to make the total of subsidy and the margin money equal to 20% of the project cost.

II.

Subsidy @ 15% the project cost subject to a ceiling of Rs. 15000/- for North Eastern State 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 margin money equal to 20% of the project cost.

E. COLLATERAL SECURITY

No collateral for project upto 5 lacks. Exemption from collateral in case of partnership project will also be limited to an amount of Rs. 2.00 Lakh person participating in the project

F. REPAYMENT SCHEDULE 3-7 years after an initial moratorium of 6 to 18 months.
G. IMPLEMENTING AGENCY State Government through Distt. Industries Centres
   
Benefits to SC / ST / OBCs As per Government. Policy
 
A. RESERVATION 22.5% FOR SC/ST,  27% FOR OBCs
B. Preference for weaker Sections including women.
C.

No collateral guarantee required. Only assets created under the Scheme would be hypothecated to the Bank.

D. Each entrepreneur whose loan is sanctioned is provided training.