The Pradhan Mantri Mudra Yojana (PMMY) was launched on 8th April 2015 by the honourable Prime Minister of India Shri Narendra Modi. PMMY also known as the Mudra loan scheme intends to bridge the funding gap to the micro enterprises and also aims to boost the confidence of the first-generation entrepreneurs and assist existing small borrowers expand their activities. The potential MUDRA borrowers under PMMY are non-corporate small business sector (NCSBS) and Own account Enterprise (OAEs) including proprietorship and partnership firms engaged in small manufacturing units, service sector enterprises, shop keeping, fruits and vegetables vending trucking operating food services, repairing and maintenance, operating machines, running small industries, food processing, handicraft making (artisans) among others in both rural and urban areas. Moreover, from the financial year 2016-17 activities allied to agriculture have also been made eligible under PMMY. PMMY consisted of launching of three loan products pegged at 50,000 called the “Shishu” loan; loan product of amounts ranging above50,000 up to 500,000 called “Kishor”; and loan product amounts ranging above500,000 and up to `1 million called “Tarun”. The instrumentality through which these products would be rolled out were to use the vast network of bank branches as well as co-opt microfinance institutions, cooperatives, and other players who were in the business of financing, thereby expanding the institutional scope of the scheme.
The main objective of the paper is to analyse the progress and performance of PMMY over the years since its inception. The study is analysed based on agency-wise, state-wise, region –wise, category-wise performance under the PMMY. It will also highlight some of the limitations of the scheme.
The study is based on secondary data and mainly drawn from reports of MUDRA Yojana (PMMY report). Other sources like newspapers, journals were also consulted during the course of the study.