Government Loan Scheme For Unemployed Indian Youth

By | November 16, 2021

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India is among the top countries that hold the highest unemployment rate. One of the major reasons for this occurrence is the country’s uncontrolled population. Despite being educated Indian youth is unable to get ahold of a source of income.

The number of graduates in the country is increasing every year, but due to a lack of employment opportunities, they are unable to earn a livelihood.

To help the youth of India to get out of the marsh of unemployment, the Government Of India has launched some loan schemes that will help the youth to get on their feet.

At present Government Of India holds five loan schemes for the unemployed educated Indian youth that can help them start up their own business.

Below we have listed all such government facilitated schemes that will help the unemployed youth of India in their betterment.

Pradhan Mantri Rozgar Yojana

Pradhan Mantri Rozgar Yojana is the first scheme launched government for unemployed people of India. This scheme aims to employ unemployed youth by giving them financial aid to start their businesses.

To be able to avail of the benefits of this scheme you need to be the 8th grade pass out in India. Furthermore, those candidates will be preferred who have been trained for any kind of trade via a Government recognized or approved institution for a minimum period of 6 months.

Under this scheme, the person can get 5 lakh for the business sector & industrial sector whereas 2 lakh loan to be composite nature for other activities.

Key Features:
The loans are available under three categories – Shishu, Kishore, and Tarun.
There is no requirement for any kind of security or collateral.
Interest rates are affordable.
For this particular loan scheme, the repayment tenure can go from 3 years to 7 years.
A woman entrepreneur may avail of this loan for working capital requirements.

NEEDS Scheme

New Entrepreneur and Enterprise Development scheme or normally referred to as NEEDS is a scheme for the unemployed youth by the Government of Tamil Nadu. 

Under this loan scheme, the state government of Tamil Nade provides about 25% of subsidy for loans for young unemployed graduates. However, only the bank decides the collateral for the loan.

The scheme estimate is between 5 lakh to 1 crore but the cost of infrastructure for the project cannot exceed 25% of the loan amount.

Agriculture Loan

In the collaboration with several banks via Agriculture Loan scheme Government Of India provides financial resources to the unemployed graduates related to the agriculture field like the purchase of agricultural land, purchase of agricultural tools, animal farming, etc.

The person can utilize this scheme for any type of agricultural project. To be eligible to take benefit from this loan scheme the said unemployed agricultural graduate youth needs to be above the age of 22.

In a nutshell, this loan scheme for unemployed youth is especially for the youth in the agriculture sector.

Cash Loans

Cash Loans is another loan scheme for unemployed youths of India by the Government of West Bengal. Under this scheme, the government will grant a loan of 50,000 rupees.

The main objective of this scheme is to help the young unemployed graduates of the state to start their businesses. 

However, only the youths between the age of 18 to 45 are eligible for this scheme.

Secured Loans For Unemployed

Under this scheme, the government of India provides loans to the unemployed graduate youths of the country with a condition that they have to pledge some asset to the loan provider to have the loan sanctioned.

In this scheme, the loan amount is directly proportional to the value of the collateral against the loan.


Unemployment, especially among the youths in India is a big thorn in the country’s growth. To tackle its government has taken several measures and the loan schemes for unemployed youths is among them.

The above-mentioned loan schemes are the best ways for all the unemployed graduates to take action and do something for themselves and generate opportunities for themselves.

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