(i) 18 to 35 years for all educated unemployed.
(ii) 18 to 40 for all educated unemployed in North-East States, Himachal Pradesh, Uttarakhand and J&K.
(iii) 18 to 45 years for Scheduled Castes /Scheduled Tribes, Ex- servicemen, Physically Disabled and Women.

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

Neither the income of the beneficiary along with the spouse nor the income
of parents of the beneficiaries shall exceed Rs.1,00,000/- p.a.

Permanent resident of the area for atleast 3 years. (Relaxed for married men in
Meghalaya and for married women in rest of the country. For married men in Meghalaya and for married
women in rest of the country, the residency criteria applies to the spouse or in-laws.

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

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

• Educated Unemployed Youth satisfy the eligibility criteria laid down under the Scheme
  volunteer to form SHG to set up self-employed ventures (Common Economic Activity).
• A Self Help Group may consist of 5-20 educated unemployed youth.
• No upper ceiling on project cost.
• Loan may be provided as per individual eligibility taking into account requirement of the project.
• SHG may undertake common economic activity for which loan is sanctioned without resorting
  to onward lending to its members.
• The subsidy ceiling for Self Help Group is Rs. 15,000/- per beneficiary subject to a maximum of Rs. 1.25 lakh per Self Help Group.
• Subsidy may be provided to the SHG as per the eligibility of individual members taking into account relaxation provided in North Eastern States, Uttarakhand, Himachal Pradesh and Jammu & Kashmir.
• Required margin money contribution (i.e. subsidy and margin to be equal to 20 per cent of the project cost) should be brought in by the SHG collectively.
• The exemption limit for obtention of collateral security will be Rs.5.00 lakh per borrowal account for projects under Industry Sector. Exemption from collateral will be limited to an amount of Rs.2.00 lakh per member of SHG for projects under Service & Business Sectors. Banks may consider enhancement in limit of exemption of collateral in deserving cases.
• Implementing agencies may decide necessity of predisbursal training for all the members/majority of the members of the group.

Subsidy & Margin money

i) Subsidy will be limited to 15% of the project cost subject to ceiling of Rs.12,500/- 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.

ii) Subsidy @ of 15% of the project cost subject to a ceiling of Rs.15,000/- per entrepreneur for north-eastern States, Himachal Pradesh,Uttaranchal and Jammu & Kashmir. 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 the margin money equal to 20% of the project cost.

Collateral

No collateral for units in industry sector with project cost upto Rs.5.00 lakh (the loan ceiling under the PMRY). For partnership projects under Industry Sector, the exemption limit for obtention of collateral security will be Rs.5.00 lakh per borrower account. For units in service and business sector no collateral for project upto Rs.2.00 lakh. Exemption from collateral in case of partnership project will also be limited to an amount of Rs.2.00 lakh per person participating in the project cost..

Rate of interest
& Repayment
Schedule

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

Preference should be given to weaker sections including women. Assistance to SC/ST beneficiaries should be targeted in such a manner that they are benefited in proportion to their population in the respective district/State. However, the number of SC/ST beneficiaries should not be less than 22.5% and 27% for Other Backward Class (OBCs) as is currently envisaged in the PMRY. In case SC/ST/OBC candidates are not available, States/UTs Govt.will be competent to consider other categories of candidates under PMRY.

Training

Each entrepreneur whose loan is sanctioned is provided training as per details given below:
i) For industry sector:
Duration:15-20 working days.
Stipend: Rs.750/-
Training expenditure: Rs.1750/-
ii) For service and business sector:
Duration:7-10 working days.
Stipend: Rs.375/-
Training expenditure: Rs.875/-

Motivational campaigns