MUDRA Yojana Essay
Write Pradhan Mantri Mudra Yojana essay in English. Prepare Mudra Yojana essay for competitive exams and English test in schools and colleges. Essay on Mudra Yojana in English in 300 words.
MUDRA Yojana Essay
On 8th April 2015, Prime Minister Narendra Modi launched this Micro unit development and refinance agency (MUDRA) scheme in order to uplift a small business and entrepreneurs of MSME (Micro Small Medium Enterprises). Under the scheme, Mudra Bank will establish which provide Loan at low rates to a microfinance institution (MFI) which then provide credit to (MSME).
The main objective of this mission is to provide loans up to 10 lakh to micro enterprises, which were 5.77 crores in number (NSSO survey 2013). These loans are given by the commercial bank, RRBs, small finance banks, cooperative banks, MFIs and non-banking financial company (NBFCs). Under this Yojana, three types of loan are sanctioned that is Shishu (up to 50,000), Kishore (above 50,000 and up to Rs 5,00,000), Tarun (Above 5 lakh and up to 10 lakh). Mudra bank is also responsible for providing policy guidelines, registration Regulation and Technology Solutions for the problem faced by MFI.
Major advantages of this scheme is that it is a great tool for job creation as 5.5 crore jobs were created by PMMY, development of the economy, industrialisation of rural areas, reduces regional imbalance and ensure equitable distribution of national income.
Some challenges come in the way of Mudra scheme such as low financial literacy, fraudulent loans, delay in processing, lack of market development, poor grievance redressal and Bank NPA.
PMMY is definitely a potent step towards the development of the economy, enhancing income generation in the country. Due to eating there is a Revolutionary change in the area of micro finance. This scheme will help the weaker section, low-income group and unfunded population.
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