• The scheme was launched on 2 October 1993 and initially was in operation in urban areas. From 1 April 1994 onwards the scheme is being implemented throughout the country.
  • The objective of the scheme is to provide self–employment opportunities to educated unemployed youth in the age group of 18 to 35 years. In North-Eastern states the eligible age group is from 18-40.
  • There is a 10-year relaxation for SC/ST, ex- servicemen/ physically handicapped and women, in the upper age limit.
  • To be eligible for assistance under the scheme the family income of the beneficiaries shall not exceed Rs. 40000 per annum and income of parents of the beneficiaries also shall not exceed Rs. 40000.
  • The banks have been allowed to make parents/Head of the family of unmarried girl as co-borrower, with effect from 21 November, 2002. The borrower should be the resident of the area for more than 3 years.
  • He should have passed at least eighth standard.
  • It has also been provided that the margin money and subsidy amount would be 20 per cent of the project cost.
  • Ceiling on subsidy amount will be Rs 7500 in States/ UTs other than in the North Eastern Region.
  • In the seven states in North East the ceiling on subsidy amount payable will be Rs 15000. This has beenextended toSikkim,Himachal Pradesh,Jammu and Kashmirand Uttaranchal.
  • Hence the margin to be brought in by the borrower will vary from 5 per cent to 16.25 per cent of the project cost.
  • All economically viable activities including agricultural and allied activities but excluding direct agricultural operations like raising of crops/ purchase of manure etc. are now being covered under the scheme.
  • Projects up to Rs.1 lakh in business sector and up to Rs 2 lakh in other sectors will be eligible for finance by banks.
  • In case of partnership firm projects up to Rs 10 lakh can be undertaken and loan amount will be to the extent of individual admissibility.
  • Residency criteria for married men in Meghalaya has been relaxed in line with the married women in the rest of the country with effect from 11 August 2003.


SHGs are considered eligible for financing under the Prime Minister’s Rozgar Yojana (PMRY), effective from 8 December 2003 (terms modified on 30 July 2004) provided all members individually satisfy the eligibility criteria laid down and total membership does not exceed twenty. There is also a ceiling on the loan amount. During 2004-05 banks sanctioned loans amounting to Rs 1923 crore in 2.98 lakh accounts, while disbursements amounted to Rs 1542 crore in 2.48 lakh accounts (data provisional). Further during 2005-06 banks sanctioned loans amounting to Rs 1987 crore in 3.10 lakh accounts, while disbursements amounted to Rs 1521 crore in 2.49 lakh accounts.

Leave a Reply

Protected by WP Anti Spam

Schemes Viewed

Fill Feedback Form





Hit Counter provided by Curio cabinets