What Are the Key Steps for Getting a Loan Against Property with Pradhan Mantri Rozgar Yojana?

Pradhan Mantri Rozgar Yojana (PMRY) is a government-run program that aims at generating self-employment opportunities through the establishment of micro-enterprises in the non-agricultural sector. This scheme considers helping educated unemployed youth set up their ventures by providing them financial assistance in the form of loans. But, like any other loan, it needs some form of collateral to ensure the risks are minimal for the lending party. One such commonly used collateral is property, which leads us to our main topic; what are the key steps for getting a loan against property with PMRY?Let’s delve further:

Understanding the Pradhan Mantri Rozgar Yojana

Before approaching the prerequisites and steps for obtaining a loan, understanding the scheme is crucial. Pradhan Mantri Rozgar Yojana aims to provide the necessary financial support for the educated yet unemployed segment of society, promoting self-employment and entrepreneurship.

Eligibility Criteria for PMRY

Each financial scheme comes with specific eligibility requirements. For PMRY, the aspirants should be an Indian citizen aged between 18 to 35 years, possessing at least a high-school-level education. The person’s family income should not exceed Rs 40,000 per annum, and they must meet the required skillset and background for starting the preferred micro-enterprise.

Understanding Loan Against Property

A loan against property, often termed as a secured loan, is when an individual pledges his/her property as security with the bank or lending institution against the loan amount. It allows the borrower to get higher loan amounts based on the mortgaged property’s value. Loan against property typically offers lower interest rates compared to unsecured loans, making it an attractive option for borrowers. Additionally, the repayment tenure for a LAP can be quite flexible, providing further convenience.

Steps for Getting Loan Against Property with PMRY

Once the basic parameters are ascertained, the next steps outline how to secure a loan under this scheme:

Step 1: Preparing a Detailed Project Report (DPR)

A Detailed Project Report illustrating the business model, project viability, potential growth, market analysis, revenue model, etc., needs to be prepared. The DPR provides a comprehensive idea about the proposed business and its profitability.

Step 2: Application Process

Fill up the application form for PMRY, showcasing the need for a loan against your property. Include all the necessary personal details, educational qualifications, project-related information, and details of the property they intend to mortgage.

Step 3: Verification Process

After submitting all the required documents, they will undergo verification. The documentation process involves property documents, identity proof, address proof, income proof, project report, caste, and educational certificate, etc.

Step 4: Property Valuation and Loan Approval

The bank will evaluate the property’s market value to determine the loan amount that can be sanctioned. Once this is done, if all terms and conditions are met, the loan will be approved, and the funds will be disbursed.


The Pradhan Mantri Rozgar Yojana is a pivotal initiative by the Indian Government to boost small-scale entrepreneurship and tackle unemployment issues. When aligned with loan against property, this scheme is a powerful tool that enables the youth to create and develop their ventures, fostering self-reliance and economic growth. With knowledge of key steps and a clear strategy, securing a loan under PMRY can be a straightforward task that brings you one step closer to realizing your entrepreneurial aspirations.

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