MUDRA LOAN AN OPPORTUNITY

MUDRA has been constituted with the prime objective of developing the Small,Micro &
Medium businesses in the country by lending various support including financial support in the
form of refinance, so it will helps to achieve the goal of Funding the Unfunded

* MUDRA Conceived for Indian scenario

* Inclusion of Last Mile borrowers a game changing policy

* Help to expand Access to finance for small enterprises

* Lower Cost of Finance

* Mass Entrepreneurship Development program and Growth

* Apex Refinancer

MUDRA VISION:

Small, Medium &Micro units comprise a major economic segment in our country and
provides large employment after agriculture
To fulfillthe needs of all non-corporate small businesses in the form Funding

MUDRA BANK has set vision for itself in the following manner, which it leads to the
Quantitative Development & Qualitative Growth in the longer period of time.
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Such loan system in India will change the face of the vibrant economy domestic markets,
suppliers, manufacturing sector, distributors, as well as service providers.Mainstreaming all
thesesmall &medium enterprises. The biggest bottleneck to the growth of entrepreneurship is
lack of financial support to this sector. The financial support from the Commercial Banks to this
entire sector is negligible, i.e. Less than 15% of bank credit facilities providing onlyto Micro,
Small and Medium Enterprises (MSMEs).

This MUDRA agency would be responsible for developing and refinancing all Micro-
enterprises sector by providing the financial support with the help of financial institutions which
are in the business of lending to small businessentities engaged in different activities.

RATIONAL OF THE STUDY:

WHY MUDRA LOAN IS AN OPPORTUNITY FOR THE MICRO & SMALL BUSINESS UNITS IN INDIA?

Such MUDRA LOAN policy redefine the strategy towards the development activities
that give thrust to new development activities around the nation and such micro finance models
is nothing but the business centric approach encompassing the Non-Corporate business sector
area across the India.

BROAD COMPOSITION OF MICRO ENTERPRISE SECTOR

Figure: Composition of 5.7 Cr. Own Account Enterprises

India launched MUDRA Yojana to address the financial and other constraints. So it helps
to keep eagle eye on the development process after penetrating the Monetary assistance from top
to bottom level in revamp manner and leads to visible difference among the large section of
people like women entrepreneurs, young men, artisans, marginalized section, small business
units etc. So it the need of the hour to pay more heed to elevate the functions of banking system
and to expand the lending practices towards the entrepreneursand encompassingeach section
specially in the rural and semi urban areas.

MUDRA is an infant step of the government to provide financial assistance credit

facilities for entrepreneurship to the bottom of the pyramid. Loans worth Rs 1.09 lakh Cr. have
been provided to entrepreneurs under the Pradhan Mantri MUDRA Yojana. Loans worth over Rs
1.09 lakh Cr. were given to over 2.96 Cr. beneficiaries. There is no shade of doubt such MUDRA
LOAN will make significant changes and make deepen impact on the Indian economy, especially
in the rural and semi-rural areas of economy, which it will bring radical revolution in providing
financial assistance to the new startups companies that will boosts to the Manufacturing sector,
Service Sector, Trading Sector etc.

CONCLUSION:
Such one stop crisis center for entrepreneurs i.e. MUDRA Loan Yojana will be the game
changing policy for the Micro, Small & Medium entrepreneurs in the longer run to get into the
Social, Economical & Financial mainstream development of Indian economy. So the Central
government flexing their muscles to exercise each and every option that boost the Industry as
well as manufacturing sector and it requires integrated holistic approach to implementsuch
Mudra Loan program and also needs to create awareness about the various financial products. So
that it is the need of the hour to make ensure every stakeholder like Government, Banks, MFIs
etc. are making contribution. MUDRA Bank Loan basic purpose is to attain development in an
inclusive and sustainable manner by supporting and promoting partner institutions and creating
an ecosystem of growth for micro enterprises sector.

References:-
1) Dr Saloni Gupta MUDRA: Financial Inclusion of the Missing Middle Volume: 5 | Issue: 11 |
November 2015 | ISSN - 2249-555X
2) International journal of marketing financial services and management research Financial
Inclusion in India an analysis Dr Anurag B singh & priyanka tendon vol.1 No. 6 June 6 2277
3622
3) Anup Kumar Roy, Volume 4, Issue 1, ISSN: 2321-7782 (Online)January 2016 International
Journal of Advance Research in Computer Science and Management Studies Mudra Yojana
A Strategic Tool for Small Business Financing
4) YOJANA August 2015 Inclusive Growth and Social Change.
5) www.mudra.org.in