4 government loan schemes for unemployed youth in India

To curb the major problem of unemployment in the country, the government has introduced some schemes to facilitate the establishment of MSMEs and create employment opportunities. Also, there are Government-sponsored loans for unemployed youth to start their own business.


Some of the loan schemes by the government are:


1. Pradhan Mantri Rozgar Yojna: This scheme was started in 1993 to provide finance to unemployed youth for starting a business. Some of its key features are:

• Individuals who have studies class VIII can apply for a loan?
• Training is given to the borrower for starting a business.
• The maximum the loan amount available is Rs.5 lakhs.

2. Agriculture loans: Unemployed individuals above 22 who are small marginal farmers, tenant farmers, sharecroppers, etc. can apply for the loan. Loan up to Rs. 1 lakhs can be availed under this scheme.

3. New Entrepreneur cum Enterprise Development Scheme (NEEDS): Introduced by the Directorate of Industries and Commerce, Tamil Nadu Government. For the individuals between 21-35 years, the state government offers 25% of the loan amount as a subsidy. However, the borrower needs to have a degree or diploma or vocational training from a recognized institution.


4. Cash loan: Individuals between 18-45 years can borrow cash loan up to Rs. 50,000, provided by the West Bengal government.

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