Applicants including educated unemployed persons whose proposals are found bankable in accordance with the norms laid down by the concerned bank obtain loans for self-employment ventures. However, there are many applications which are not approved for various reasons which, inter alia, include applicant being unclear about activity proposed to be taken up, applicant wanting to enter activity without training/experience & no apparent capacity to run a business in that line, non-viable/Inflated business plan, Inability/unwillingness of the applicant to furnish requisite margin money, history of previous default etc.

The Government already facilitates educated unemployed youth in obtaining such loans in a number of ways which, inter alia, include,guiding interested applicants on proper filling up of application forms, identifying person specific activity to be taken up for business assistance in preparing a viable business plan, advising the applicants about the processes followed by banks & other funding institutions, Entrepreneurship education, Model business plans for different businesses posted on different portals for the guidance of aspiring entrepreneurs etc.

In addition, self-employment is supported through schemes such as Pradhan Mantri Mudra Yojana (PMMY), Prime Minister's Employment Generation Programme (PMEGP), Pradhan MantriRojgarProtsahanYojana (PMRPY), Stand Up India (SUI), Pradhan Mantri YUVA Yojana (PMYY) etc.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.

Access to bank credit for educated unemployed: government facilitation expands loan support and guidance for self-employment. Access to bank credit for educated unemployed persons depends on meeting banks' bankability norms; rejections commonly arise from unclear activity, lack of training or managerial capacity, non-viable or inflated business plans, inability to provide required margin money, or prior defaults. The Government facilitates improved access by guiding applicants on applications, identifying suitable business activities, assisting in viable business plan preparation, offering entrepreneurship education, providing model business plans online, and supporting self-employment through complementary government schemes.