Unemployment is a major problem in the country. And it is quite impossible to secure a loan from a private financial institution for unemployed youth in the country. Because all the parameters have to be completed in it, from documents guaranteeing security to credit score, banks investigate a lot of aspects before handing out a loan.
However, the government has come up with a lot of schemes to support individuals who want to kick-start their career with a small industry or use it for any other purpose and also to eradicate poverty by supporting unemployed youth in India.
The government has rolled out following loan schemes for unemployed youth in India:
Prime Minister Rozgar Yojana:
Under the scheme, any unemployed person who has received education till standard 8 and belongs to the age gaps of 18-35 is applicable to apply for loans. The government of India offer loans to unemployed to kick-start their own ventures and it may be noted that the loan is of composite nature and individuals can avail a loan of up to Rs 5 lakh for setting up their venture. However, in the case, the income of the beneficiary along with the income of his/her parents should not exceed Rs one lakh per annum.
Loan subsidy scheme:
This scheme is not available across all the states, the Tamil Nadu government gives Nifty plans to unemployed youth, under which subsidy is given by the state government on the amount of 25 per cent loan. At the same time, under the NEEDS scheme, the state government grants 25 per cent subsidy to any unemployed youth on any loan.
Similar to the NEEDs scheme, this is also a state-funded initiative as the government of West Bengal kick-started the scheme. Under the scheme, an unemployed person can apply for a loan of Rs 50,000 under the scheme. For this, the unemployed youth should be 18-45 years old.
This is a very useful scheme for those unemployed individuals engaged in the agricultural sector. Unemployed youth who are 22 years of age or above, who are graduates can apply for loans under this scheme.
Secured loans for unemployed:
In this process, the individual will have to pledge some asset to the lender for the loan to be sanctioned. Here, the loan amount will depend directly on the value of the asset.