PERFORMANCE OF PRIME MINISTER MUDRA YOJANA-AN ANALYTICAL STUDY

The Pradhan Mantri Mudra Yojana (PMMY) was launched on 8th April 2015 by the honourable Prime Minister of India Shri Narendra Modi. PMMY also known as the Mudra loan scheme intends to bridge the funding gap to the micro enterprises and also aims to boost the confidence of the first-generation entrepreneurs and assist existing small borrowers expand their activities. The potential MUDRA borrowers under PMMY are non-corporate small business sector (NCSBS) and Own account Enterprise (OAEs) including proprietorship and partnership firms engaged in small manufacturing units, service sector enterprises, shop keeping, fruits and vegetables vending trucking operating food services, repairing and maintenance, operating machines, running small industries, food processing, handicraft making (artisans) among others in both rural and urban areas. Moreover, from the financial year 2016-17 activities allied to agriculture have also been made eligible under PMMY. PMMY consisted of launching of three loan products pegged at `50,000 called the “ Shishu” loan; loan product of amounts ranging above `50,000 up to `500,000 called “ Kishor” ; and loan product amounts ranging above `500,000 and up to `1 million called “ Tarun” . The instrumentality through which these products would be rolled out were to use the vast network of bank branches as well as co-opt microfinance institutions, cooperatives, and other players who were in the business of financing, thereby expanding the institutional scope of the scheme.