This
article is very helpful for those people who are trying to start/set up a
business. But, the business has not started due to a shortage of budget. In
this article, we will find how to arrange a budget for a business? and how many
options are there?
The first
option is applying for a loan from the Govt. Bank, I think you have some idea
how much it is difficult, these banks have so many required documents, so this
is not a simple task. The second option is the private banks or private financer,
there you can get loan easily but interest-rate is so high which is not good
for business. So how to arrange money for the business.
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| Planning for new Business |
The
Government of India has been implementing the Prime Minister Rozgar Yojana
scheme since the year 1993 (during the period of the 8th five-year
plan) with a focus on the creation and provision of sustainable self-employment
options to educated but unemployed youth of the country. It relates to the
setting up of self-employment ventures in the manufacturing, business, service,
or trade sector.
It was
projected that 1 million youth in the country are provided gainful means of
self-employment through this scheme. However, the progress has been much more
since day one of the programs.
Eligibility Criteria
There
are certain eligibility criteria that you must confirm if you wish to apply for
this scheme. Over the years, there have been a lot of modifications in the
eligibility criteria so that the scheme remains in tune with the requirements
of the present day.
Under this Scheme, the age limit is 18
to 35 years and special benefit for SC and ST Category (10 years of relaxation
is given for SC/STs, ex-servicemen, physically handicapped, and women).
The
upper age limit has been relaxed, in general up to 40 years for people from the
North-eastern states. For the SCs/STs, ex-servicemen, physically
handicapped, and women the relaxation shall be up to the age of 45 years.
Income
Limitation to take this scheme benefit
Family
income not exceeding Rs. 40,000/- per annum for each beneficiary
along with his/her spouse and the parents of the beneficiary.
Terms
and condition for applying under PMRY Scheme
1. Residential status
2. Resident in the current
place of residence for at least 3 years.
3. Educational requirement Minimum
- VIII grade pass.
4. Borrower status - You must
not have defaulted on a loan in the past or availed assistance through another
subsidy-linked government scheme.
5. Exclusion to the Scheme
6. Should not have defaulted
on any loans/schemes availed in the past from nationalized banks/financial
institutions or cooperative banks.
7. Should not have benefitted
under any other subsidy linked scheme of the Government.
Project
Cost details
Project depending upon the
category of the upper limits have been set as below:-
- The upper limit of the project
cost has been increased from Rs. 1 lakh to Rs. 2 lakhs (Rs. 1 lakh for the business
sector and Rs. 2 lakhs for other activities). The PMRY scheme would now
cover all economically viable activities including agriculture and allied
activities but excluding direct agricultural operations like raising a crop,
purchase of manure, etc.
- If
you are applying jointly as a partnership along with two or three eligible
partners, the project cost of up to Rs 10,00,000 is also allowed.
For
the North-Eastern region, special regulations for project cost are formed as
follows:
The
PMRY would be expanded in scope to cover areas of horticulture, piggery,
poultry, fishing, small tea gardens, etc. to cover all economically viable
activities. PMRY would have a family income ceiling of Rs. 40,000 per
annum for each beneficiary along with his/her spouse and the upper age limit
will be relaxed to 40 years. Project costing up to Rs. 2 lakhs in other
than business sectors will be eligible for assistance.
No
collateral will be insisted for projects costing up to Rs. 1 lakh. Group
financing up to Rs. 5 lakhs will be eligible. The scheme will have a
subsidy component @ 15% with an upper ceiling of Rs. 15,000/-. The margin
money may vary from 5% to 12.5% of the project cost to make the subsidy and
margin contribution at 20% of the project cost.
Loan
repayment Schedule
The
repayment tenure is meant to be easy and flexible. It generally ranges from 3
to 7 years after an initial moratorium as decided by the lender.
Rate
of Interest
The regular rate of interest
as decided by the banks/ other financial institutions from time to time will be
applicable. This is also subject to change as per the rules and regulations of
the lenders.
How
to apply for a loan Under PMRY Scheme?
The
Development Commissioner (Small-Scale Industries) who works under the aegis of
Ministry of Small Scale, Rural and Agro, Industries Government of India is the
apex body for this scheme. The implementation of the scheme is done by the
respective Commissioner/ Director of Industries at the State level except for
the four metropolitan cities.
At the
district level, the implementation agencies are the District Industries Centre
(DIC) which would be instrumental for the grounding of the units, while the
Small Industries Service Institute (SISI) Small at Delhi, Kolkata, Mumbai,
and Chennai will be implementing agencies of this scheme.
Steps
for Loan Application
Step1: Visit the official
website of Prime Minister’s Rozgar Yojana https://pmrpy.gov.in
Step2: Download the
application form and fill it with complete details.
Step3: Submit the duly filled form with project report based on a project idea
to the respective bank that comes under the PMRY scheme and then the concerned
bank will get in touch with you.
List
of Documents Required
Copies of the following documents are required
to apply for Pradhan Mantri Rozgar Yojana (PMRY):
1.
Duly filled application form with passport-sized photographs.
2.
EDP Training certificate.
3.
Copy of the Proposed Project Profile.
4.
Experience, qualification, and technical certificates.
5.
Proof of Date of Birth (SSC certificate or TC from school were studied).
6.
Residence proof for 3 years, ration card, or any other proof of residency.
7.
Income certificate issued by Local Authority.
8.
Caste certificate issued by Local Authority, if applicable.
9.
Driving License.
10.
Any other document required by the lender.
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| Proper training by Govt. Agency |
Training
Successful candidates undergo required training
from agencies earmarked. After the successful completion of training the bank release
the loan amount.
FAQs
1.
What is the maximum loan amount for Unemployed Youth under PMRY Scheme?
-
The maximum loan amount that can be provided for Unemployed Youth is Rs.
95,000.
2.
What is the maximum family income for eligibility for PMRY Scheme?
- The maximum family income can be Rs. 40,000
only.
3.
Who is not eligible for the PMRY Scheme?
-
Co-operative Societies, not being a partnership, are not eligible for
assistance under PMRY Scheme.
4.
What is the processing fee for PMRY Scheme?
- There are no fee charges.
5.
What is the tenure for repayment of loan amount?
- The tenure for repayment of loans is between
3 to 7 years.
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