9Pradhan Mantri Mudra Yojana
Another scheme that deserves mention and applause is the “Pradhan Mantri Mudra Yojana” that extends monetary help to people who want to start their business from scratch or wish to expand their business from a small scale. The scheme was ratified under the patronage of our honourable Prime Minister and came into effect on 8 April,2015. MUDRA is an acronym for micro units development and refinance agency ltd which is a public sector financial institution whose function swivels around the idea of providing loans at low interest rates to the micro finance and non banking financial institutions which in turn can be disbursed to the MSMEs who can avail these for vehicle loans, business installation loan, business loans group loans(BLGL), and as rural business credit(RBC) all for the purpose of expanding their business. the traditional scenario for availing loans doesn’t reach out to a large section of our population due to lack of collateral or other necessary requirements but under this scheme the pre requisites are rather tolerant and flexible. The main aim is to provide easy credit to small enterprises in order to scale up.
This scheme warrants the non corporate and non farm small/micro enterprises a chance to manifest their entrepreneurial dreams by granting them loans upto Rs10 lakhs. The loans under the said scheme are called “Mudra” loans and have very reachable norms for appropriation that includes a substantial reduction in the interest rates too. The scheme aims at “funding the unfunded” and it is where the essence of this scheme lies. Shishu, kishore and Tarun imply the three stages that chronologize the various ambits of the business at which respective funding might be required. The scheme aims at reaching the segment at the bottom of the pyramid and has undertaken the task of providing financial autonomy and liberation to this segment so that they can grow and gradually climb up the pyramid. As per the official data, for the financial year, 2018-2019, 3,89,48,660 loans have been provided under the scheme and a total of Rs 202668.96crores have been dissipated. Such influx of funds positively effects the economic soundness of the country by strengthening its backbone that includes giving more power to its deserving citizens economically. Anybody who runs a small business is eligible for applying for this loan and the same can be availed from Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs and NBFCs. Such dynamic schemes are what our country needs at the moment as it focuses on development from the grass root level and not just polishes the already beaming crust of our economy. This scheme is inclusive as well liberating at the same time as it encourages the citizens to think beyond the ambit of availability of resources and take a leap towards the larger picture.