Analysing the Influence of Mudra Loans on Small/Micro Enterprises in Pune City, Maharashtra

Abstract

Background: The Mudra initiative plays a crucial role in supporting entrepreneurship and facilitating financial assistance to small and microbusinesses. Through a combination of quantitative and qualitative methods, this study analyzes the accessibility, utilization, and effectiveness of Mudra loans in Pune City. The research investigates the financial performance, job creation, and entrepreneurial prospects of businesses that have availed of mudra loans compared to those that have not. Additionally, we explore the challenges and opportunities that entrepreneurs face in the context of this government scheme.

Purpose: The purpose of this paper is to examine how MSMEs utilize Mudra loans and for what purpose, and to identify the major challenges they face in accessing these loans. Methods: Our study uses qualitative factors to study the impact of mudra loans on SME’s. The present study is descriptive in nature. The data was collected by the personal interview method using a pre-tested schedule prepared for the purpose. I collected data from 300 respondents from Pune city from August 2023 to December 2023. Secondary data was collected through reference books, annual reports, discussions with bank officials, etc.

Results: The findings of this contribute valuable insights to policymakers, financial institutions, and entrepreneurs, enabling them to make informed decisions to enhance the support and success of SMEs in Pune City, Maharashtra.

Conclusions: The paper studied the impact of mudra loans on SMEs in terms of utilization of mudra loans by the SMEs and challenges faced while availing the mudra loans. The research found that the mudra loan scheme has been beneficial to the small and micro enterprises in the Pune city area. SMEs utilized the Mudra loans as working capital, for fixed capital, and for business expansion. But there has been no significant improvement in employment generation and standard of living of the beneficiaries due to the mudra loan.

  • Page Number : 31–36

  • Published Date : 2023-04-10

  • Keywords
    Mudra loans, Job creation, Financialperformance, Pune city, Government scheme

  • DOI Number
    10.15415/jtmge/2023.141004

  • Authors
    Sushmitha Rao and Komal Singh

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