written by | March 23, 2022

How Can a PMKVY Loan Help You Start an Amazing Business Venture?

If you’re a small business owner, understanding the intricacies of financial management may prove to be too challenging for you. You may not have enough working capital either. If you see your business touching heights in the near future, just having fine business sense won’t be enough. The Indian government is trying hard to decrease the skill gap, and for the sake of the same, it has launched many skill development initiative schemes, which are easy to take advantage of. 

Did you know?

The New India Assurance Company recently created an amazing master policy for candidates who will enjoy the insurance advantages under the PMKVY scheme with a 3-year validity period from the date of starting their company?

What Is the PMKVY Scheme?

Unemployment can be an issue for any country, even the most powerful USA. The Indian government has launched the PMKVY scheme to reduce the nation's unemployment percentage. This scheme is very helpful for semi-educated and skill-less people.

The scheme offers industry-related skills, placement assistance, valuable guidance, and valid government certification. 

These are the reasons which attract you to enrol in this scheme:



Short Term Training

Offers training, assessing, and certification-related opportunities to youth.

Kaushal and Rozgar Mela

Training parties organise this every 6 months to expand the scheme's reach.

Special Projects

Let's facilitate in the special premises and areas of corporate/industry bodies and government bodies.

Continuous Monitoring

Ensure that the training centres are tech-rich to maintain high quality and standards.

Placement Assistance

Offers a solid platform to PMKVY applicants to bring them greater employment opportunities.

Recognition of Prior Learning

Provides skilled candidates a strong platform to avail certification. These PMKVY certificate benefits are highly beneficial in order to start a business easily.

Standardised Communication and Branding 

The training centres have to conduct promotional activities and brand their centres.

How Does PMKVY Scheme Help in Starting Business?

Short-Term Training

Under PMKVY, various Training Centres (TCs) are there that offer instruction in many areas. It includes entrepreneurial skills, soft skills, financial and digital literacy. Many candidates benefit from this training program, including unemployed students who have dropped out of college or school. The training programs fall under the National Skills Qualification Framework. The duration of the training course generally ranges between 150 and 300 hours.

Special Projects

You'll get running in specific areas or facilities of government bodies, corporate offices, and industry bodies through special projects. The training includes specific job positions available in the existing Qualification Packs (QPs)/National Occupational Standards (NOSs). The conditions and terms differ slightly from the training provided under PMKVY for stockholders of all kinds. The main goal in Special Projects is to encourage the development of weak and marginalised social groups.

Also Read: How Production Linked Incentive Scheme Boosts India’s Manufacturing Sector

Continuous Monitoring

Inspectors with Empaneled Inspection Agencies can take diverse methods to maintain high-quality standards. These include self-audit reports, call validations, and surprise visits using a Skills Development Management System (SDMS). The inspector who visits has information about the timing of batches for a specific centre and should visit. This is to ensure compliance with PMKVY guidelines for 2016-20.

Recognition of Prior Learning

RPL is a term used to describe an assessment method that you can use to assess the skills of an individual's current set, the knowledge/experience acquired through either formal or informal learning. Anyone with prior learning knowledge or experience is evaluated in the context of Recognition of Prior Learning (RPL); it is one element in the PMKVY loan program. More than 6 lakh people are RPL certified and receive bridge training from project implementation Agencies (PIAs) to fill in their gaps in knowledge and get their skills ready for the current market circumstances.

Guidelines on choosing RPL:

  • It's free, and there's no charge for participation in the RPL program.
  • ₹500 is the price for every candidate who is successfully certified.
  • Accidental insurance coverage is free for 3 years to applicants.
  • RPL gives a government certification to those who have the capabilities
  • Individuals are exposed to notions of digital and financial literacy.

Kaushal and Rozgaar Mela

Kaushal and Rozgar Mela work through Training Partners every half-yearly with media coverage. PMKVY emphasises the participation of the targeted beneficiaries by a specific mobilisation process. It is crucial for Training Partners to actively participate in in-person activities and National Career Service Melas.

Standardised Branding & Communication

Branding is a crucial aspect, and all training centres must advertise their centres and promotional activities according to the guidelines. The centres for training must advertise the activities they conduct in the centre on different websites for social networking.The purpose of PMKVY is to adapt workers' capabilities to the workplace requirements and improve the efficiency of wage earners who are already employed through financial incentives and quality training. The amount of the award is approximately ₹8000. For those with RPL, the amount is ₹2000 and ₹2500.

Placement Assistance

PMKVY's training partners allow working with accredited individuals in this scheme. Training partners must also offer assistance to develop entrepreneurs.

The candidate will be in the right place if he/she meets the following requirements:

  • The candidate enjoys a certificate and is placed within the first 90 days after the certification.
  •  Once the candidate has completed successfully three months of continuous work (self/wage).
  •  People employed in wage jobs earn minimum or higher than minimum wage according to the guidelines for employment in the state.

Also, if you want to further expand the business, knowing about various types of loans is important to choose the ideal financial support for your business with the least interest rates.

Recognition of Prior Learning

This scheme helps certify individuals who already have adequate skills for the role/job.

  • RPL PMKVY certifies the individuals under it with the NSQF (National Skills Qualification Framework).
  • An individual who passes the minimum age limit set by the Qualification Pack (requirement, fits the pre-screening criteria according to the concerned SSC (Sector Skill Council) for the job role and possesses a valid ID is eligible for this scheme.
  • Mobilisation, Counselling/Pre-Screening, Orientation, Final Assessment, Certification are the five steps.
  • There are activities in mobilisation to mobilise the already skilled candidates who are uncertified.
  •  Individuals attend the mandatory orientation after getting pre-screened and counselled. Assessment and certification take place after that.

Also Read: Government Loan Schemes for Small Businesses In India

Who is Eligible to Apply?

All Indian citizens can avail the scheme who:

  • Possesses a bank account and Aadhaar card.
  • Is a school/college dropout or an unemployed youth.
  • Has a verifiable ID like Voter ID or PAN.
  • As per the SSCs rules for various respective job roles, any other criteria.
  • College students shouldn't be enrolled under PMKVY because this scheme focuses only on school/college dropouts. Besides that, in the case of corporations or factory premises, candidates can't be daily wagers or their employees.

Can I Get a Job After the Implementation of PMKVY?

If you want to gain some valuable experience before starting your own business or to measure your strengths/weaknesses and level of skills, you can find a job first. Also, if you believe in raising funds for yourself and not taking any loans, doing a job first is a smart idea.

But what are the chances for you to get a job after PMKVY's Implementation?

The National Skill Qualification Framework evaluates the feedback from various industries where trainees and employees work and decides the specific skills.

Here are some stats worth considering:

  • After the PMKVY's implementation, 252 job roles were considered up to impart training within the first 2 years.
  • Approximately ₹15.4 lac candidates have received government certificates after the 2 years of scheme implementation. 
  • Nearly ₹5.8 lac placements were recorded under the short-term training component. 
  • Out of 252, training is offered for 198 job roles.


If you want practical, theoretical, and industry-level knowledge to plan your own business in the future, enrolling in the PMKVY can highly help you out. Also, there are many PMKVY certificate benefits. After passing through all training processes, you'll need investment to run your business. 3 years is the extended limit of the loan tenure, and you also enjoy EMI plans. Approval and disbursal processes are also swift. 

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.


Q: How can I apply for a skill loan?


Follow these steps:

  • Register on the official Vidya Kaushal portal.
  • Submit documents like identity, proof of income, and proof of address.
  • Choose your sector/role/centre as convenient after a successful registration.
  • Visit your chosen centre for counselling and raise a loan request if needed.
  • You can accept or reject loan terms and offer as per preference.
  • Disbursement of the loan directly to the centre post-confirmation.

Q: Which is the best course in PMKVY?


As per the PMKVY data, the best courses in PMKVY with maximum job chances are apparel, retail, telecom, hardware, electronics, and logistics.

Q: How can I make money on PMKVY?


As per your chosen course, you can enjoy a reward of ₹5,000₹10,000 as a PMKVY student. You can use this amount to pay the training partner the course fee.

Q: What is a PMKVY Loan?


There is nothing like the exact term PMKVY loan. This scheme is all about training the youth, after which one can conveniently avail business loans to start a new business venture.

Q: What Is the primary target of the scheme PMKVY?


PMKVY is MSDE's flagship scheme, whose objective is to train much unemployed Indian youth and help them secure a brighter future.

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