Page 119 - MUDRA ANUBHAV

Procedural Impact
• The Borrowers have shown reported overall
neutral response towards the procedure for

Obtaining the MUDRA loans.
Economic Impact
• Majority of the borrowers have reported that
MUDRA loans borrowed by them has not led to

any major change in their economic condition.
The intended impact was not created in the
income generation of the borrowers which is
disheartening. But when tested empirically, it

is found that beneficiaries perceived that the
outcome of mudra loan is contributing positively
towards the growth of their business and overall
economy of the country.
Credit Risk Management

• Study of Credit Risk Management measures
reveals worrisome results. While MUDRA loans
are mandated to be collateral free, many financial
institutions insist of collaterals and personal
guarantee, as reported by their representatives.
Margin money contribution is also insisted from
the borrowers. However, as per the experience
of the beneficiary respondents, majority of them
were not insisted on collaterals.
• Lender representatives also shared that they
have experienced willful default of the loan,
which shows fraudulent intent on part of the
borrowers. However, they also shared that
majority of such willful defaulters face legal
action from the financer for their acts.

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