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Women entrepreneurs: Major beneficiaries of Mudra scheme

Pradhan Mantri Mudra Yojana (PMMY) scheme provides loans up to 10 lakh to the non-corporate, non-farm small/micro-enterprises. Mudra loan is the best possible option to avail a loan, this scheme ensures that small businesses get refined financial support from banks, private sector banks, urban cooperative banks, regional rural banks, microfinance institutes, and non-finance companies. This loan scheme is approached primarily by a small business firm that requires financial help to expand.

Features of Mudra Loan

The following are some of the key features and characteristics of the Pradhan Mantri Mudra Yojana scheme.

Who can borrow- Any business owner or business who has not been a defaulter and has a clear payment history on any loan repayment previously is eligible to borrow under the PMMY (Pradhan Mantri Mudra Yojana). Business owners, private limited companies, public sector companies or any other legal business entity are eligible to apply for Mudra loans.

Purpose of Loan – As a Mudra loan is a business loan, the loan amount cannot be used for personal needs like a personal loan. This loan is provided to small businesses that carry out specific activities in the manufacturing, services or trading sectors. The capital obtained from a Mudra loan can be utilized to grow and expand businesses.

Interest rates– Under the Mudra Scheme loans are offered with nominal interest rates and vary based on the quantum of the loan amount sanctioned.

Loan amount – The PMMY scheme has three categories under which the loans are disbursed: Shishu, Kishor, and Tarun.

  • Shishu Loan: This loan can be availed up to the maximum limit of Rs. 50,000
  • Kishor Loan: PMMY loans exceeding Rs. 50,000 and up to Rs. 5 lakh are designated as Kishor loan and in such cases, the interest rate will tend to vary depending on the bank sanctioning the loan amount and the creditworthiness of the borrower
  • Tarun Loan: This loan features PMMY borrowings in excess of Rs. 5 lakh and up to Rs. 10 lakh as per the Mudra scheme.

Women Enterprise Programme (Mahila Uddyami Yojana)

This scheme is an important part of Mudra Yojana targeted specifically at women entrepreneurs. As more and more women in India become entrepreneurs, they will find themselves being looked upon with a newfound respect. The Mudra yojana scheme is designed to encourage individual women entrepreneurs, women’s Joint Liability Groups and Self-Help Groups to set up various micro-enterprises. Of all the steps and initiatives proposed and implemented by the Government, this scheme by far seems to be the most revolutionary one, causing a storm in the non-urban portions.

Mudra Loan for Women Entrepreneurs

A lot of women business owners have increased over the years. This was made possible by their passion, talent, dedication and their ability to obtain essential business financial support including their access to capital. A lot of women entrepreneurs have made an effort to understand the use of business credit that will help benefit their business operations. In a competitive market for SME loans, there are a lot of options available for women business owners.

With the help of the Pradhan Mantri Mudra Yojana scheme women, entrepreneurs can manage their business finances with ease. The Mudra scheme aims to strengthen forward and backward linkages for robust value chains anchored by industries, aggregators, franchisors and associations. Recently, Textiles Minister Smriti Irani stated that there are 14 crore loans that have been processed. Of which, 75 per cent have gone to female entrepreneurs. That speaks a lot about the latent entrepreneurial talent of Indian women and the exponential growth in the future.

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