A Study of Role of Pradhan Mantri Mudra Yojna in Capital Formation

Abstract

MUDRA is established by government of India for the purpose of providing collateral free loans to micro and small entrepreneurs, so that capital formation, self employment, employment and industrial development may be possible. MUDRA provides quick loans to start micro and small business to common person and those persons who have special technical knowledge with minimum formalities without any help of middlemen. MUDRA also provided refinance to banks MFIs and NBFCs those provides loan to entrepreneurs on less formalities. MUDRA provides different category of loan such as; Shishu, Kishor, Tarun and Tarun Plus under PMMY.  PMMY Secondary data has been selected for this research from company websites, annual reports, research papers and thesis etc. Composition of 5.7 crore Own Account Enterprises out of which 47% accounts holdings of enterprises in urban sector and 53% accounts holding of enterprises of rural sector. Data shows that 36% enterprises in trading business, 34% enterprises are working in service sector and remaining 30% are engaged in manufacturing business. It also revealed from study that more than 70% loans are provides to women entrepreneurs to establish small business. It shows that PMMY highly focus on women empowerment. Uttar Pradesh is the top state in which disbursed amount is highest. Since 2024-23 total number of accounts open are 533100694, total amount sanctioned and disbursed under different category are 3442065 crore and 3363942.