Abstract

The tangible impact is seen regarding financing access to micro-enterprises sector in India through last-mile financiers viz- banks, regional rural banks, microfinance institutions, and non-banking financial companies in terms of extending credit to micro-enterprises. The study assessed the overall impact of MUDRA yojana and analyzed the disbursements made to MUDRA Udemy’s revealing that cumulative disbursements under PMMY during five years since 2015 stood at 12.30 lakh crore benefitting 24.48 crore loan accounts. Out of this, 68% of the loan accounts were sanctioned to women beneficiaries and 51% to social categories. During FY 2019-20, the total sanctions under PMMY have grown to Rs.3.37 lakh crore, exceeding the target set at Rs.3.25 lakh crore and benefiting 6.22 crore beneficiaries. In Conclusion, MUDRA scheme generates significant and ripple effect on the employment generation and subsequently on the social development.