What is Pradhan Mantri MUDRA Yojana?
Indian economy is world’s fastest growing economy. It holds the GDP growth rate of 7.1% (as of 2016 statistics) and its service sector is improving rapidly with an annual growth rate above 9%. India aims to be one of world’s super powers in near future. The business sector in India supports its economic growth heavily. The contribution of micro and small business segments is considered as equal with the contribution of huge conglomerates. They pioneer the growth of Indian economy and help to sustain it in local and rural places. But many of these micro and small business segments especially in rural India face huge funding problems. Though their financial requirements are small, it becomes difficult for them to get desired financial backing.
Thus the Indian government introduced Pradhan Mantri MUDRA Yojana in 2015 in order to provide financial backing to micro and small business set ups in India. The main purpose of Pradhan Mantri MUDRA Yojana is to provide funds to non-corporate & non-farm small business sectors. The Pradhan Mantri MUDRA Yojana is beneficial for micro units across nations. Micro units include small organizations, start-ups and small companies. Here is a list of a few small business segments which can get benefits:
- Partnership firms
- Small manufacturing units
- Service sector units
- Fruit or vegetable vendors
- Truck operators
- Food service units
- Repair shops
- Machine operators
- Small industries
- Food processors
- Other industries in rural and urban areas.
There are many advantages and benefits of Pradhan Mantri MUDRA Yojana. The eligibility to avail a business loan under this scheme is very nominal yet specific. The basic eligibility criteria are listed below: