NEW DELHI: Launched on April 8, 2015, the Pradhan Mantri MUDRA Yojana (PMMY) has brought about a miracle during the last eight years. Back then, India’s formal financial sector was reeling under bad loans from the rich and the powerful with its doors shut to teaming millions who had no security to offer.
The PMMY opened the doors for them and has disbursed collateral-free loans worth Rs 23.2 lakh crore to over 40.82 crore beneficiaries since its launch. Thereby, it has successfully created an easily accessible bridge between a large unbanked sector and formal lenders.
The Micro Units Development and Refinance Agency (MUDRA), created under the aegis of PMMY, has arranged finance for anyone who has a viable plan for a small business enterprise but has nothing to offer as a bank guarantee. Its target is to maximise positive economic impact. The enterprise could be from any sector – manufacturing, trading, services or agriculture.
The social impact of the PMMY is much deeper. It has brought about a revolution of the marginalised groups such as SC/STs, OBCs and the minorities. One of the scheme’s most commendable achievements has been its impetus to women entrepreneurship. Women account for 70 per cent of MUDRA loans.
Overall, the PMMY has achieved its objectives of equitable and fair spatial distribution of benefits by fostering selfemployment across social groups. In the coming years, it is imperative that it reaps the benefits of 5G technology and e-commerce, even as MUDRA cards are popularised further.
