A Comprehensive Review of MUDRA Loan Scheme: Implications for MSME Development
DOI:
https://doi.org/10.24113/ijoscience.v9i10.483Abstract
: The Pradhan Mantri MUDRA Yojana, PMMY aims to provide collateral-free loans to the level of 10 lakh for micro and small enterprises that may contribute to income generation, employment, and economic growth. The paper analyses the effectiveness of the scheme bearing an emphasis on its MSME sector and allied agricultural activities. On this basis, secondary data gathered from government reports and other financial databases has used a qualitative as well as a quantitative analysis method. It could be realized from the study that MUDRA loans had acted as a crucial factor in revving up entrepreneurship activities, especially among women and in rural entrepreneurial level, yet it was constrained by high repayment pressure and the need for constant financial education. The outcome was such that MUDRA loans were supporting expansion in businesses and employment but needed further enhancement in financial terms and clarity about the process followed in disbursing the loan. This research feeds into the policy discourse in improving the credit facilities for MSMEs and ensuring their contribution toward the economic expansion of India.
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