With the perspective of enabling the last person belonging to farthest corner of society, with the necessary finances and lending credit to all types of businesses in the country, the MUDRA-Micro Units Development and Refinancing Agency bank was established as public sector financial institution. Low rate loans are sanctioned by Micro financiers under this scheme.
PradhanMantri MUDRA Yojna (PMMY) was launched by Hon. Prime Minister Shri. Narendra Modi on April 8th2015 for providing loans up to Rs.10 Lakhs to the non-corporate, non-farming small and micro enterprises. These loans are classified as MUDRA loans under PMMY.
These loans are given by Commercial banks, Small finance banks, Micro Finance Institutions (MFIs), Non-banking Financial institutions (NFBCs), Co-operative Banks etc. at low rates to eligible enterprises.
The PMMY loans are given to the Citizens of Bharat and basically for people for business activities in non-farming sector. It is given for Income generating activities in Manufacturing, Processing, Trade and Service sector or any other fields up to Rs. 10 Lakhs.
The PradhanMantri MUDRA Yojna is classified under three products as per the funding required by the beneficiary or the entrepreneur.
1. Shishu Loan - < Rs. 50,000/-
2. Kishor Loan - Above Rs. 50,000/- up to Rs. 5, 00,000/-
3. Tarun Loan - Above Rs.5, 00,000/- up to Rs.10, 000, 00/-
MUDRA is a refinancing institute and it does not lend directly to the micro entrepreneurs. In availing MUDRA loans, there are no middleman engaged. The borrower can obtain this loan from their nearby branch office of bank, NBFC, MFIs etc. They can also file online application for MUDRA loans on Udyami-mitra portal (WWW.udayamimitra.in).
The exclusive features of PMMY reflects the NDA Government’s committed mission of Funding the unfunded with only basic documentation, no guarantor and at an extremely low rate of interest.
The vision behind this programme is to encourage and aid and promote more and more people to turn entrepreneur to earn reasonable livelihood. It would also release the pressure on employment generation and eventually turn into source of employment creation as most of entrepreneurs would appoint employees.
Taking the global outlook, Bharatiya economy has earned the fifth position surpassing that of UK and France.
USA has been leader wearing the crown for last 149 years but Chinese economy, currently at no.2, has been competing to take the top position since a few years.
The Chinese economy has been pre-dominantly the one promoting Entrepreneurship. As per the survey conducted in 2019, in China, 10.6 % of respondents in the age group between 18 and 24 years, reported to be in their own business.
The IE study revealed a striking difference in the ratio of women entrepreneurs in China and that in Europe and USA. The study shows that the Chinese companies have more female executives, board members and self-made billionaires than their US and European counterparts.
The reason behind China’s rapid economic rise, is mainly due to cultural factors. Structure of Bharatiya economy is very similar to that of Chinese economy. During pre-British era, the structure of Bharat’s economy was based on hereditary run businesses of small, medium and cottage industries. After advent of British, with the introduction of English language, machine made products and western influences, the White Collar job culture became prevalent.
In last 70 years, after independence, with increasing number of educated youth emerging every year, the jobs available, were insufficient to absorb the lot and the ratio of unemployment increased rapidly.
Keeping in mind the largest young population of Bharat, the NDA Government led by Narendrabhai Modi, created the necessary infrastructure to promote the entrepreneurship amongst the youth and as a result, the MUDRA Yojna was implemented.
Since the time the MUDRA Yojna was implemented in April 2015, till the end of current financial year in March 2020, more than Twenty Five Crore (25,09,48,705) loans have been sanctioned pan Bharat.
In the same period, the amount of Rs.12,26,951.58 ( Twelve Lac Twenty Six Thousand Nine Hundred Fifty One Point Fifty Eight Only) Crore has been sanctioned and Rs. 11, 82,615.02 ( Eleven Lac Eighty Two Thousand Six Hundred Fifteen Point Zero Two only) Crore have been already disbursed to beneficiaries.
MUDRA Yojna is instrumental in lessening the gap among highly educated White Collar employees drawing steep salaries and the ones unable to acquire sophisticated degrees. Availability of fund without much complicity, has inspired huge section of people to start a venture of their own. Even the stay-at-home housewives are earning during their free time and adding to the GDP of the economy.
MUDRA Yojna, the revolutionary step by visionary Government is a mission to create inclusive, sustainable and value based entrepreneurial culture, in collaboration with our partner institutions in achieving economic success and financial security.