Benefits of Mudra Loan
The Mudra Bank is an initiative taken by the government to fund those who are ‘unfunded’. These banks will give a fund of INR 10 lakh to the small entrepreneurs. This bank will also act as regulator to the Micro Financing Institutions (MFIs). It will refinance the MFIs too – through the Pradhan Mantri Mudra Yojana solution.
Mudra Bank was opened up with the objectives of enhancing and encouraging the small entrepreneurs. It was a step towards the ‘Make in India’ Slogan. Mostly self employment and agriculture will be the main areas of focus of the Mudra Yojana.
How will Mudra Yojana affect people?
As already mentioned, the main function of Mudra Yojana is to support the small business owners and to promote the MFIs. This initiative will enhance the growth of the economy right from the bottom and ensure that infrastructure is developed at a large scale for better development.
The small and micro businesses are the back bone of the economy. Promoting them will ensure India is on the right track towards growth. It is to be noted, that poor farmers have often had to lend from money lenders, who exploit them by charging abnormally high interest rates. Due to the lack of a proper structure in the past, many farmers and small entrepreneurs have had to suffer. With the onset of the Mudra Yojana, everyone will get a fair chance to start up their business whether it is a local store owner or a farmer.
It is to be noted that the small business owners are estimated to be in a debt of 17500 INR on an average in India. With the increase of the loan amount from INR 5 to 10 lakh, the small business owners will be greatly benefited. It might even lead to more generation of job opportunities.
What are the highlighted benefits of Mudra Yojana?
It is the role and responsibility of the Mudra Yojana to bring about changes in these areas:
- SC/ST enterprises and lending them for their startups
- The lower income groups – helping them boost their small business
- To fund vendors, hawkers, self help groups, etc
- To help those people access financial aid, who do not yet have bank accounts
- Lower the cost of finance
- Running a fair and square government micro credit scheme to boost self employment and small businesses.