Page 59 - MUDRA ANUBHAV

Chapter No. 5

PERCEPTION STUDY OF BENEFICIARIES OF
PMMY

MUDRA, which stands for Micro Units Development
& Refinance Agency Ltd., is a financial institution
set up by Government of India for development and

refinancing of micro enterprises. It was announced
by the Hon’ble Finance Minister while presenting
the Union Budget for FY 2016. The purpose of
MUDRA is to provide funding to the non-corporate

small business sector through various Last Mile
Financial Institutions like Banks, NBFCs and MFIs.

The main obstacle in the growth of entrepreneurship
in the Non–Corporate Small Business Sector

(NCSBS) is lack of financial support to this sector.
It has been observed that more than 90% of this
sector does not have access to formal sources of
finance. Government of India has set up MUDRA

Bank through a statutory enactment for catering
to the needs of the NCSBS segment or the informal
sector for ensuring their growth and contribution
to the economic growth of the nation.

Under the aegis of Pradhan Mantri MUDRA

Yojana (PMMY), MUDRA has already created its
initial products / schemes. The interventions
have been named ‘Shishu’ which covers the loan
up to Rs.50000., Kishor, which covers loans

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