Research Gateway

Abstract

The main motive behind this study to find out the major impact of Mudra Loan on Micro, Small & Medium Enterprises (MSME). The major traffic jam to the growth of entrepreneurs in the Non-Corporate Small scale industries is the lack of financial support to this sector. Majority of this sector does not have access to formal source of funding. In a Developing country having large population like India, small business units play a significant role not only in contributing to nation income but also by providing employment to a large number of people. After identifying the significance of self-employment people and small business units, government of India launched MUDRA Yojana to deal with the financial and other constraints. It is envisaged that it will benefit small entrepreneurs and will also act as a governing body for ‘Micro-Finance Institutions (MFIs). The MUDRA Bank will facilitate credit to 5.77 crore small business units that are spread all across. India who currently face difficulty to access credit from the regular banking system. Mudra Bank will associate with local coordinators and provide finance to “Last Mile Financers” of small/micro businesses.