An Analytical study of MUDRA Yojana

Abstract: Small scale industry is still unorganised in India and obtaining loan from existing formal banking system was cumbersome for them until 2015. Contribution of MSME in India's GDP is significantly high and cannot be ignored. MSME contributes around 45% of India's exports. This sector plays very important role in generating huge employment for Indias working age population. But due to limited loan facilities, small scale industries growth was stifled. It was not easy for them to obtain loan in low rate of interest with easy repayment facility. To encourage young and ambitious entrepreneurs, the government of India launched MUDRA Yojana to provide loans to needy who were deprived of loan. Present study focuses on performance of institutes lending loans under PMMY Yojana to micro and small-scale enterprises. Secondary data from annual reports of MUDRA bank is taken for the study. Year 2022-2023 and 2023-24 have been selected to delve into the topic.