PMRY - Institute for Social and Economic Change

true even in the case of PMRY loans also (Table 5.12). As many as 70 beneficiaries from
Kolar, 3 from Raichur and 17 from Udupi admitted that the loan amount borrowed under
PMRY was not used for the stipulated purpose and used for some thing else. It is
interesting to note that a majority of the beneficiaries admitting diversion of loan
amount had borrowed to start business ventures.
Table 5.12: Number of beneficiaries diverting funds by activity
Activity Kolar Raichur Udupi All
Business 48 2 8 58
Industry 10 0 2 12
Service 12 1 7 20
All 70 3 17 90
Source: Based on table generated by IAMR
5.8. Additional funds and total investment in the units
The basic objective of PMRY is to assist the educated unemployed youth for
starting a venture so as to generate gainful employment and earn the livelihood.
However, many a times, the financial assistance extended by the banks as loan to start
the venture under PMRY will not be enough and many of the beneficiaries will have to
invest in self-employment ventures some additional amounts over and above the loans
granted by the banks.
5.8.1. Quantum of additional funds
It can be seen from Table 5.13 that 1434 beneficiaries accounting for 38 per
cent of the total 3787 total beneficiaries from the three study districts did not invest any
additional funds of their own, while the remaining 2353 (62 per cent) beneficiaries had
to invest varying amounts in the self-employment venture. It is observed that about 28
per cent of the total beneficiaries invested less than ten thousand rupees whereas 5 per
cent of the beneficiaries invested an additional amount to the tune of more than Rs.
50,000 each (Fig. 5.2).
Similarly, 553 and 548 of the total beneficiaries accounting for roughly 15 per
cent each of the total beneficiaries invested in the range of Rs. 10,000 to 20,000 and Rs.
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