THREE MANDATORY PROJECT REPORTS ON

GENERAL MANAGEMENT
“AWAERNESS OF MUDRA YOJANA TO AMONG PEOPLE IN AMBARNATH”

SPECIALIZATION
“An Analytical Study on the Financial Statements of Titan Company Ltd”

CSR

“ Corporate Social Responsibility of ITC”

Submitted in partial fulfillment for the award of the degree of

MASTER OF MANAGEMENT STUDIES
UNIVERSITY OF MUMBAI

Submitted by
Ms. AKANSHA MAHENDRA TIWARI
ROLL NO. 22170
2022-2024
Under The Guidance of
Dr. GIRISH B PAWAR

SWAYAM SIDDHI COLLEGE OF MANAGEMENT & RESEARCH

BHIWANDI
(Affiliated to Universityof Mumbai, Approved by AICTE &Recognized byGovt. of Maharashtra) ( DTE Code: MB
3133) (An ISO 9001 – 2000 Certified Institute)
 CERTIFICATE

This is to certify that the project titled

“AWAERNESS OF MUDRA YOJANA TO AMONG PEOPLE IN AMBARNATH”,

“An Analytical Study on the Financial Statements of Titan Company Ltd”,

“Corporate Social Responsibility of ITC”

is successfully completed by Ms. AKANSHA MAHENDRA TIWARI during the IV Semester, in

partial fulfillment of the Master’s Degree in Management Studies recognized by the University of
Mumbai for the academic year 2022 – 2024. This project work is original and not submitted earlier
for the award of any degree, diploma or associateship of any other University / Institution.

Date:

DR. SAMADHAN KHAMKAR [Link] B PAWAR

(DIRECTOR) (PROJECT GUIDE)

External Examiner
 DECLARATION

I hereby declare that this project report submitted by me to the partial fulfillment of the requirement
for the award of MASTER OF MANAGEMENT STUDIES (MMS) of the University of Mumbai
is a Bonafede work undertaken by me and it is not submitted to any other University or Institution
for the award of any degree, diploma/ certificate or published any time before.

Name:

Roll No. 22170 Signature of the student

(AKANSHA MAHENDRA TIWARI)

 ACKNOWLEDGEMENT

This project has been a great learning experience for me. I take this opportunity to thank

[Link] B PAWAR, my internal project guide whose valuable guidance &

suggestions made this project possible. I am extremely thankful to her for her

support. She has encouraged me and channelized my enthusiasm effectively.

I express my heart-felt gratitude towards my parents, siblings and all those friends who have willingly
and with utmost commitment helped me during the course of my project work.

I also express my profound gratitude to DR. SAMADHAN KHAMKAR, Director of Swayam Siddhi
College of Management & Research for giving me the opportunity to work on the project and broaden
my knowledge and experience.

I would like to thank all the professors and the staff of SSCMR especially the library staff who were
very helpful in providing books and articles I needed for my project.

Last but not the least, I am thankful to all those who indirectly extended their co-operation and
invaluable support to me.
 GENERAL MANAGEMENT PROJECT

“AWAERNESS OF MUDRA YOJANA TO AMONG PEOPLE IN AMBARNATH”

 EXECUTIVE SUMMARY of General Management Project

This executive summary outlines strategies to increase awareness of the Mudra Yojana
among the residents of Ambarnath. The Mudra Yojana is a government initiative aimed at
providing financial assistance to small businesses and entrepreneurs. The lack of awareness
about this scheme among the local populace has led to underutilization of its benefits.

To address this issue, the proposed plan focuses on several key areas. Firstly, leveraging digital
platforms such as social media, websites, and mobile apps to disseminate information about
the Mudra Yojana. Secondly, organizing awareness campaigns, workshops, and seminars in
Ambarnath to educate people about the scheme's benefits and application process. Thirdly,
collaborating with local banks and financial institutions to streamline the loan approval
process and provide personalized assistance to applicants.

By implementing these strategies, we aim to significantly increase awareness and

participation in the Mudra Yojana among the people of Ambarnath, thereby empowering
small businesses and fostering economic growth in the region.

6
 INDEX

[Link]. CONENT PAGES

NO.

ABSTRACT
1. CHAPTER - 1
Introduction of MUDRA YOJANA Micro
financing meaning
Mission , Vision , Purpose Role
& Monitoring of MUDRA 1 - 26
Management of MUDRA YOJANA Product
& Service of MUDRA YOJANA Purpose of
MUDRA loan
Report card of MUDRA

2. CHAPTER - 2
Research Methodology
Objective of Study
Research Design Sampling
Design 27 - 30
Data Collection Need
of Study Scope of
Study Limitation of
Study
Analysis Tool

3. CHAPTER - 3
Review Of Literature 31 - 35
4. CHAPTER - 4
Data Interpretation & Analysis 36 - 53
5. CHAPTER - 5
Suggestions, finding & Conclusion 54 - 58
Bibliography 59 - 61

Webliography 62

Annexure 7 63 - 66
Abstract:

Pradhan Mantri MUDRA Yojana is a flagship scheme launched by Government of

India in 2015 in order to provide financial assistance to the micro and small scale
entrepreneurs. The main objective of this paper is to provide a comprehensive
evaluation of the MUDRA scheme since its inception. This study is based on
secondary data which has been gathered from the website of MUDRA and its annual
reports. Through the analysis of data, it is observed that there is a substantial rise in
the disbursement amount since its establishment. The result also indicated that there is
a just a nominal difference in the amount of loan sanctioned and disbursement. This
paper also emphasize on the overview of Pradhan Mantri MUDRA Yojana in
different states and overall performance by all the institutions. On the basis of
sanctioned amount in the past three financial years, a comparative performance of top
10 states revealed that state Tamil Nadu topped the list closely followed by
Karnataka. Further, in terms of percentage change in the disbursement amount from
financial year 2017-18 to 2018-19, the results revealed that among these states, Bihar
has displayed highest percentage growth followed by Odisha. Furthermore, public
sector banks stood topper, in terms of the sanctioned amount for the financial year
2018-19, followed by private sector banks. However, in terms of target achievements,
Non-Banking Finance Companies over-achieved their targets with 147% followed by
Small Finance Banks with 119%.

8
 CHAPTER – 1

INTRODUCTION

1
 INTRODUCTION

Mudra Yojana:-

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India

to “fund the unfunded” by bringing such enterprises to the formal financial system and
extending affordable credit to them. It enables a small borrower to borrow from all
Public Sector Banks such as PSU Banks, Regional Rural Banks and Cooperative Banks,
Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non-
Banking Finance Companies (NBFC) for loans up to Rs 10 lakhs for non-farm income
generating activities. The scheme was launched on 8th April, 2015 by the Hon'ble Prime
Minister.

Micro Units Development and Refinance Agency Bank:-

Micro Units Development and Refinance Agency Bank (or MUDRA Bank) is a public
sector financial institution in India. It provides loans at low rates to micro-finance
institutions and non-banking financial institutions which then provide credit to MSMEs.
It was launched by Prime Minister Narendra Modi on 8 April 2015.

The formation of the agency was initially announced in the 2015 Union budget of
India in February 2015. It was formally launched on 8 April.

The MUDRA banks were set up under the Pradhan Mantri MUDRA Yojana scheme. It
will provide its services to small entrepreneurs outside the service area of regular banks,
by using last mile agents. About 5.77 crore (57.6 million) small business have been
identified as target clients using the NSSO survey of 2013. Only 4% of these businesses
get finance from regular banks. The bank will also ensure that its clients do not fall into
indebtedness and will lend responsibly.

MUDRA has been initially formed as a wholly owned subsidiary of Small Industries
Development bank of India (SIDBI) with 100% capital being contributed by it.
Presently, the authorized capital of MUDRA is 1000 crores and paid up capital is 750

2
crore, fully subscribed by SIDBI.] More capital is expected to enhance the functioning
of MUDRA.

This Agency would be responsible for developing and refinancing all Micro-enterprises
sector by supporting the finance Institutions which are in the business of lending to
micro / small business entities engaged in manufacturing, trading and service activities.
MUDRA would partner with Banks, MFIs and other lending institutions at state level /
regional level to provide micro finance support to the micro enterprise sector in the
country.

Micro Financing:-

Micro Finance is an economic development tool whose objective is to provide income

generating opportunities to the people at the bottom of the pyramid. It covers a range
of services which include, in addition to the provision of credit, many other credit plus
services, financial literacy and other social support services.

MUDRA vision:-

To be an integrated financial and support services provider par excellence,

benchmarked with global best practices and standards, for the bottom of the pyramid
universe for their comprehensive economic and social development.

MUDRA Mission:-

To create an inclusive, sustainable and value based entrepreneurial culture, in

collaboration with our partner institutions in achieving economic success and financial
security.

3
MUDRA Purpose:-
Mudra loan is extended for a variety of purposes which provides income generation and
employment creation in Manufacturing, Services, Retail and Agri. Allied Activities.
Our basic purpose is to attain development in an inclusive and sustainable manner by
supporting and promoting partner institutions and creating an ecosystem of growth for
micro enterprises sector.

The Genesis of MUDRA:-

The Union Budget presented by the Hon'ble Finance Minister Shri Arun Jaitley, for FY
2015-16, announced the formation of MUDRA Bank. Accordingly MUDRA was
registered as a Company in March 2015 under the Companies Act 2013 and as a Non-
Banking Finance Institution with the RBI on 07 April 2015. MUDRA was launched by
the Hon'ble Prime Minister Shri Narendra Modi on 08 April 2015 at a function held at
Vigyan Bhawan, New Delhi.

Roles and Responsibilities of MUDRA:-

MUDRA has been formed with primary objective of developing the micro enterprise
sector in the country by extending various support including financial support in the

4
form of refinance, so as to achieve the goal of funding the unfunding. The GOI Press
release of 2 March 2015 has laid down the roles and responsibilities of MUDRA.
Subsequently GOI has also decided that MUDRA will provide refinance support,
monitor the PMMY data by managing the web portal, facilitate offering guarantees for
loans granted under PMMY and take up other activities assigned to it from time to time.
Accordingly MUDRA has been carrying out these functions over the last one year.

Monitoring of MUDRA YOJANA:-

Pradhan Mantri Mudra Yojana (PMMY) was launched along with the launching of
MUDRA on 08 April 2015 and the detailed guidelines were issued by Government of
India to all banks and MFIs. MUDRA was given the responsibility of monitoring the
programme by collecting the information on regular basis. Accordingly, MUDRA has
put in place a monitoring portal which captures the data on lending under PMMY, in a
granular fashion

5
 Management of MUDRA:-
Shri Vinay Hedaoo –

Shri Vinay Hedaoo joined as Managing Director & Chief Executive Officer, Micro
Units Development & Refinance Agency Limited (MUDRA) from 2nd August 2021.
Before joining MUDRA, he was the Chief General Manager of Small Industries
Development Bank of India (SIDBI).

He has experience of more than 30 years in IDBI and SIDBI across different verticals
covering areas of Development banking, Branch Management, Credit, Recovery,
Audit, Risk Management, Premises, Board, etc

He worked as the Regional In-charge of Lucknow Region of SIDBI as also as

Chairman/Member of various Credit and other Committees. He served as the Chief
Operating Officer of India SME Asset Reconstruction Company (ISARC) and the Chief
Executive Officer and Whole Time Director of National Credit Guarantee Trustee
Company Ltd. (NCGTC).

He is a Bachelor in Textile Technology from V J T I, Mumbai and holds a Diploma in

Textile Engineering from Indian Institute of Technology, New Delhi. He is also a
Certified Associate of the Indian Institute of Bankers.

6
Shri Sivasubramanian Ramann - Chairman

Shri S. Ramann, belongs to 1991 batch of Indian Audit & Accounts Service (IA&AS).
He joined as Chairman & Managing Director, Small Industries Development Bank of
India (SIDBI) from 19th April 2021. Before joining SIDBI, he was MD & CEO of
National E-Governance Services Limited (NeSL) from December 2016. Prior to joining
NeSL, Mr. Ramann was the Principal Accountant General (Audit), Jharkhand, Ranchi
during 2015-2016. He worked with SEBI as CGM and later Executive Director between
2007 & 2013.

He held various positions in the offices under the C&AG of India in various States and
also worked as Executive Secretary to the C&AG of India. He worked as First
Secretary, at Indian High Commission, London for auditing the accounts of various
Indian Embassies in Europe. He is BA (Hons) Economics from St Stephens College
and MBA from FMS, Delhi University. He has done M. Sc. in Regulations from
London School of Economics and Certified Internal Auditor from IIA Florida. He
completed LLB from Mumbai University and Post Graduate Diploma in Securities
Law.

7
Ms. Smita Affinwalla - Independent Director:-

Ms. Smita Affinwalla, an Economics Graduate

and MBA, is the Founder and Managing
Director of Illuminos Consulting Private
Limited, a consulting firm focussed on
enhancing organisational and individual
performance through the development of
human capability using Neuroscience. She also consults in the space of Leadership
evaluation and succession as well as building Purposeful organisations and leaders.

Ms. Smita has served as an Independent Director on the Boards of prestigious

institutions viz., HDB Financial Services Limited, Prime Securities and SICOM where
she has been a Chair/ Member of various Board Committees. Ms. Smita is a member
of the Industry Advisory Committee of the Indian Institute of Management, Indore and
a member of the National Network for Human Resources (NHRD) Mumbai Chapter.
She was previously the Co- Chairperson, HR Committee, and Indian Merchants’
Chamber. Ms. Smita has served as a Senior Fellow, Human Capital with The
Conference Board, and USA from 2013 to 2018.

During her career of over 34 years she has worked in the fields of Financial Services
and Human Resources. In the field of Finance she has worked on setting up and growth
of businesses in Retail as well as Wholesale sectors and as a consultant she has helped
her clients to structure and raise capital, through both debt and equity instruments. On
the other side, in the field of HR, Ms. Smita set up and ran the BFSI SBU for the
erstwhile Hewitt Associates (now Aon) in the Talent and Organisational Consulting
practice where she managed large HR & OD consulting projects in the BFSI sector both
in India as well as South East Asia and the Middle East. Ms. Smita has served also as
Head of Consulting with Development Dimensions International (DDI) India and as
Group Director HR&OD for Motilal Oswal Financial Services Limited.

8
Jyotsna Sitling – IFS

Jyotsna Sitling is the first female tribal Indian Forest Service officer of India. With a
career of institutional entrepreneur, she has created participatory institutions, policies,
instruments and programs in areas like biodiversity, poverty, gender, livelihoods,
watershed, agribusiness, entrepreneurship and skills. During this work, she has handled
government projects and multilateral/bilateral projects with WFP, European Union
(EU), GIZ, IFAD, IDRC, ICIMOD, UNESCO and World Bank. She continues to work
passionately at the intersection of market, equity and environment. Presently, she is
working on ecosystem for social enterprises in India. Ms. Sitling is IIM Bangalore
alumnus and is a recipient of Indira Gandhi Paryavaran Puraskar 2004-05 and Prime
Minister’s Award for Excellence in Public Administration 2006-07 for her outstanding
contribution to the public service of the country

9
Shri V Satya Venkata Rao–

Mr. V Satya Venkata Rao has more than 29 years of working experience in two All
India Financial Institutions. He is a Post Graduate in Law with distinction of securing
a Gold Medal from Andhra University in Masters of Law. He has handled several
critical matters in areas such as Legal, Human Resource, Corporate Communications,
etc. Shri Rao has participated in International Conferences in London and Beijing. He
has spent considerable time in the areas of legal matters with special emphasis on
recovery through legal route and has been successful in resolution of huge NPAs.

Mr. Rao has functioned as a Nominee Director on the Boards of several listed and non-
listed Companies. He has also served as a Director on the Boards of Venture Capital
Real Estate Companies and Societies registered under the Societies Registration Act.

10
Shri Sudatta Mandal - Deputy Managing Director

He joined as Deputy Managing Director, Small Industries Development Bank of India

(SIDBI) on 3rd May 2021. Before joining SIDBI, he was the Chief General Manager
& Chief Financial Officer of the Export-Import Bank of India (Exim Bank).

He has experience of more than 25 years across different verticals (Assets, Liabilities,
Risk Management, Compliance and Strategy) in Exim Bank including more than 20
years of operational experience in International Trade and Investment Finance, Project
Finance, SME lending including Cluster Finance, Trade Finance, and cross-border
Development Finance.

He is a B-Tech. in Electrical Engineering from the Indian Institute of Technology,

Kanpur, and holds a Post Graduate Diploma in Management with specialisation in
Finance from the Indian Institute of Management, Calcutta.

11
SHRI MUKESH KUMAR BANSAL –

Sh. Mukesh Kumar Bansal is an officer of Indian Administrative Service (2005 batch).
He is presently working as Joint Secretary in the Department of Financial Services,
Ministry of Finance, and Government of India.

Sh. Bansal is a Commerce graduate and also an MBA from the Sloan School of
Management, Massachusetts Institute of Technology, USA. He has also completed his
MA Economics from IGNOU.

Prior to his posting as Joint Secretary, Department of Financial Services, Ministry of

Finance in October, 2022 he worked as Private Secretary to Hon'ble Minister of
Agriculture and Farmers Welfare, Govt of India, from March, 2020 to October, 2022).

Before being deputed to the Government of India, Sh. Bansal held various key positions
in his Cadre State of Chhattisgarh. He had worked as CEO. Zila Panchayat, North
Bastar Kanker; Commissioner Municipal Corporation, Bilaspur. He worked as
Collector & District Magistrate in three districts namely Kabirdham, Raigarh &
Rajnandgaon from 2011 to 2017. He was Special Secretary to Honble Chief Minister
Chhattisgarh from 2017 to 2018 and at that time he also held additional post of CEO,
Naya Raipur Development Authority. He had also worked in different departments
namely Agriculture, Tribal Development, an

12
Shri S V Sastry - Independent Director

Shri S V Sastry, a graduate in Science from Government College, Anantapur (Andhra

Pradesh) joined State Bank of India as a Probationary Officer on 01st October 1985.
He retired from the services of the Bank on 30th September 2022 as Deputy Managing
Director (Global Markets). During his career spanning 37 years, Shri Sastry held
various assignments in the Bank-both in India and abroad.

After his initial banking stint in the North East at various Branches including as Branch
Manager, he worked as a forex dealer between 1996 and 2003 in Mumbai. He held the
position of Chief Dealer at SBI Frankfurt and Chief Dealer at SBI London between
2003 and 2008. As Deputy General Manager (Treasury Management Group) at the
Bank’s Corporate Office in Mumbai, he was overseeing treasury operations of overseas
offices between 2008 and 2011. As General Manager (Network II) in Ahmadabad
Circle he was leading retail operations of around 400 branches. As General Manager
(Forex) at the Banks’ Corporate Office in Mumbai he was overseeing the forex
operations of domestic offices

Shri Sastry was MD & CEO of SBI DFHI Ltd., a subsidiary of the Bank and a
Standalone Primary Dealer between November 2017 and May 2020. Thereafter he
moved to head the domestic treasury operations of State Bank of India as DMD (Global
Markets).

Shri Sastry was Chairman of FIMMDA between July 2020 and September 2022,
wherein he had opportunities to interact with officials of RBI on a regular basis. For a
major portion of his career in the Bank, he was associated with the markets both forex
as well as Rupee.

13
Product & Services of Mudra Yojana:-

Micro Units Development and Refinance Agency Ltd. [MUDRA] is an NBFC

supporting development of micro enterprise sector in the country. MUDRA provides
refinance support to Banks / MFIs / NBFCs for lending to micro units having loan
requirement up to 10 lakhs. MUDRA provides refinance support to micro business
under the Scheme of Pradhan Mantri MUDRA Yojana. The other products are for
development support to the sector. The bouquet of offerings of MUDRA is depicted
below. The offerings are being targeted across the spectrum of beneficiary segments.

Pradhan Mantri MUDRA Yojana (PMMY):-

Under the aegis of Pradhan Mantri Mudra Yojana (PMMY), MUDRA has created
products/ schemes. The interventions have been named 'Shishu', 'Kishore' and 'Tarun'
to signify the stage of growth / development and funding needs of the beneficiary micro
unit / entrepreneur and also provide a reference point for the next phase of graduation /
growth to look forward to :

 Shishu : covering loans up to 50,000/-

 Kishor : covering loans above 50,000/- and up to 5 lakhs

 Tarun : covering loans above 5 lakhs and up to 10 lakhs

14
With an objective to promote entrepreneurship among the new generation aspiring
youth, it is ensured that more focus is given to Shishu Category Units and then Kishore
and Tarun categories.

Within the framework and overall objective of development and growth of micro
enterprises sector under Shishu, Kishore and Tarun, the products being offered by
MUDRA are so designed, to meet requirements of different sectors / business activities
as well as business/ entrepreneur segments.

The funding supports from MUDRA are of two types:

 Micro Credit Scheme (MCS) for loans up to 1 lakhs finance through MFIs.

 Refinance Scheme for Commercial Banks / Regional Rural Banks (RRBs) /

Small Finance Banks / Non-Banking Financial Companies (NBFCs

Micro Credit Scheme:

Micro Credit Scheme is offered mainly through Micro Finance Institutions (MFIs), who
deliver the credit up to 1 lakh, for various micro enterprise / small business activities.
Although the model of delivery may be through SHGs/JLGs/ Individuals, the loans are
given by the MFIs to individual entrepreneurs for specific income generating micro
enterprise/ small business activities.

Refinance Scheme for Banks/NBFCs:

Different banks like Commercial Banks, Regional Rural Banks, Small Finance Banks
and NBFCs are eligible to avail of refinance support from MUDRA for financing micro
enterprise activities. The refinance is available for term loan and working capital loan
up to an amount of 10 lakh per unit. The eligible banks/NBFC, who comply to the
requirements as notified, can avail of refinance from MUDRA for the loans given by
them for eligible MUDRA compliant activities under Shishu, Kishore and Tarun
categories. In order to encourage women entrepreneurs, the financing banks / MFIs may
consider extending additional facilities, including interest reduction on their loan. At
present, MUDRA extends a reduction of 25bps in its interest rates to MFIs / NBFCs,
who are providing loans to women entrepreneurs.

15
MUDRA Card:-

MUDRA Card is a debit card issued against the MUDRA loan account, for working
capital portion of the loan. The borrower can make use of MUDRA Card in multiple
drawals and credits, so as to manage the working capital limit in cost-efficient manner
and keep the interest burden minimum. MUDRA Card also helps in digitalization of
MUDRA transactions and creating credit history for the borrower. MUDRA Card can
be operated across the country for withdrawal of cash from any ATM / micro ATM and
also make payment through any ‘Point of Sale’ machine

The aim of this scheme is to attain development in a sustainable manner by supporting

partner institutions and promoting the growth of the micro-enterprise sector. The
MUDRA card can be used to make multiple withdrawals and avail credits to manage
the working capital limit in an efficient and productive manner. This helps to reduce
the burden of interest payments. Cardholders can also avail exclusive merchant offers
at the time of purchase.

Development and Promotional Support:-

Besides the credit constraints, the Non Corporate Small Business (NCSBS) face many
non-credit challenges, like,

 Skill Development Gaps

 Knowledge Gaps

16
  Information Asymmetry
 Financial / Business Literacy
 Lack of growth orientation

To address these constraints, MUDRA plans to adopt a credit- plus approach in future
and offer Developmental and Support services to the target audience. It will act as a
market maker and build–up an ecosystem with capacities to deliver value in an efficient
and sustainable [Link] and Promotional Support :-

Imparting Financial / Business Literacy:-

Financial / business literacy or financial education can broadly be defined as 'providing

familiarity with and understanding of financial market products, especially rewards and
risks, in order to make informed choices.'

Financial Inclusion and Financial / business Literacy are twin pillars. While Financial
Inclusion acts from supply side providing the financial market / services that people
demand, Financial Literacy stimulates the demand side – making people aware of what
they can demand. Supporting the financial literacy drive will contribute substantially
from the demand side to the national agenda of financial inclusion.

To address these constraints, MUDRA will adopt a credit- plus approach and offer
Developmental and Support services to the target audience. It will act as a market maker
and build –up an ecosystem with capacities to deliver value in an efficient and
sustainable manner. This apart, the micro enterprise segment also needs business
literacy which will help them in acquiring knowledge on running / managing business,
keeping accounts, working out ratios, etc.

17
Portfolio Credit Guarantee:-

Traditional institutional financing in Indian context adopts an Asset Based Lending

Approach with emphasis on collateral security. Micro units, most of the times, are
unable to provide the comfort of collateral. Hence, MUDRA loans, i.e., loans up to 10
lakh, have been made collateral free, as per the RBI norms in this regard.
To mitigate the issue of collateral and to provide comfort to the lending institutions, a
Credit Guarantee Product is extended by creation of a Fund called “Credit Guarantee
Fund for Micro Units” [CGFMU]. All eligible micro-loans sanctioned since April 08,
2015 are covered under the above guarantee. The Scheme is being managed by National
Credit Guarantee Trustee Company Ltd. [NCGTC], an agency promoted by the GOI.
The Guarantee product is one of the key interventions made with the objective of
bringing down the cost of funds and facilitating ease of access to institutional credit for
the end beneficiary to improve his creditworthiness.

18
Promotion and Support of Grass Root Institutions:-

One of the major focus areas will be to formalize and institutionalize the last mile
financiers / grass root institutions so that a new category of financial institutions viz.
Small Business Finance Companies can be created and ecosystem developed for their
growth.
Rural innovations at micro enterprise / unit level would also be one of the key areas for
intervention and support. Support to Micro units by way of the facility of incubators
would be taken up. This would ensure that at the most grass root levels in the country,
there is climate for promotion of innovation as well as incubation of ideas from
educated rural youths which would germinate in viable micro enterprises.

Working with Credit Bureaus:-

With the growth of responsible lending practices, Credit Bureaus (CB) have gained
increasing level of acceptability in the micro finance sector. The CB culture will help
in creating credit history over a period of time which will facilitate faster credit
dispensation as the system evolves.

Working with Rating Agencies:-

Accreditation / rating of MFI entities is one of the roles earmarked for MUDRA.
Further, a segment of financial intermediaries for the non-corporate small business
sector is envisaged to emerge in the financing architecture. MUDRA would work in
coordination with Rating Agencies so that appropriate rating framework(s) which take
into account sector specific features are devised for various sector participants. In the
longer run, availability of rating for sector participants would facilitate formalization
and further flow of capital to the sector.

Creation of Framework for "Small Business Finance Entities”:-

An enabling framework for support to "Small Business Finance Entities" would be

created leading to formalization of the economy which is presently included in the
informal sector.

19
Synergies with “Make in India” Campaign:-

Government of India has initiated several steps for encouraging enterprise creation in
our country. The major one is “Make in India” movement. Make in India is a major
national programme designed to facilitate investment, foster innovation, enhance skill
development, project intellectual property and build best in class manufacturing
infrastructure. This coupled with Start-up India and Stand-up India campaign, has
created a conducive environment of enterprise creation in different scales. MUDRA,
being an initiative for promoting micro enterprises, fits well with Make in India
initiative for supporting these micro enterprises.

Synergies with National Rural Livelihoods Mission / National Urban Livelihood

Mission:-

The National Rural Livelihoods Mission [NRLM] is set up "To reduce poverty by
enabling the poor households to access gainful self-employment and skilled wage
employment opportunities, resulting in appreciable improvement in their livelihoods on
a sustainable basis, through building strong grassroots institutions of the poor." To
achieve the above, NRLM Mission inter alia follows a demand driven strategy for
continuous capacity building, imparting requisite skills and creating linkages with
livelihood opportunities for the poor, including those emerging in the organized sector.

Similarly, the Deendayal Antodaya Yojana [DAY] National Urban Livelihood

Mission is another programme which is aimed at reducing urban poverty through
creation of micro enterprises, individually and group mode.

MUDRA, being an initiative for promoting micro enterprises, would make all efforts
to draw synergies between NRLM, NULM and MUDRA interventions for supporting
micro enterprises and creating sustainable livelihood opportunities for the poor.

Synergies with National Skill Development Corporation:-

NSDC is already engaged in the process of skill development at a National scale.

Synergizing with NSDC will help MUDRA in augmenting the skill sets of the sectoral
players.

20
The MUDRA Pricing:-

Access to finance is critical and equally critical is the cost of finance to the
NCSB/ultimate beneficiary. The funds mobilized by micro units from the informal
sources are at a high cost. There is scope for cost rationalization. However, the
rationalization is intricately linked with the cost of funds for the last mile MFIs.

GOI while announcing the formation of MUDRA also announced a refinance corpus
for MUDRA to be allocated by RBI from the Priority Sector lending shortfall.
Accordingly, RBI has provided the allocation which helps in bringing down the cost of
lending at the ultimate borrower level as MUDRA refinance will reduce the average
borrowing cost of the lending institutions

The NBFC-MFIs are presently regulated by Reserve Bank of India and RBI has already
prescribed detailed guidelines for margin cap in respect of MFIs. The margin cap has
been pegged at 10% for MFIs having loan portfolio of more than 100 crore and 12%
for smaller MFIs having loan portfolio of less than 100 crore or 2.75 times the average
base rate of five major commercial banks, whichever is less. In the backdrop of these
guidelines and the fact that MFI sector has been constantly trying to reduce its costs,
MUDRA would also help MFIs reduce their cost to bring down the overall cost to the
end beneficiaries. Further, at the time of appraisal, MUDRA would be studying /
assessing individual MFIs on this as well as other related parameters and suitably price
its assistance based on such assessment.
In the case of Banks, RBI has also put a cap on the interest rate at Base rate/ MCLR for
lending micro units by Commercial Banks by availing of MUDRA refinance. Similarly,
the RRBs have been given an interest cap of 3.50% over and above MUDRA refinance
rate, while lending a PMMY loan by availing of MUDRA refinance.
In case of NBFCs, RBI has also stipulated an interest cap of 6% over and above
MUDRA refinance while their lending to MUDRA segment.
All these are expected to have a positive impact on the pricing of MUDRA loans in the
country whereby the Micro enterprises will be able to avail of credit at an affordable
interest rate. But, the first and foremost objective is to ensure accessibility of credit.

21
Purpose of MUDRA loan:-

Mudra loan is extended for a variety of purposes which result in income generation and
employment creation. The loans are extended mainly for:
 Business loan for Vendors, Traders, Shopkeepers and other Service Sector
activities
 Working capital loan through MUDRA Cards
 Equipment Finance for Micro Units
 Transport Vehicle loans – for commercial use only
 Loans for agri-allied non-farm income generating activities.
 Tractors, tillers as well as two wheelers used for commercial purposes only.

 Following is an illustrative list of the activities that can be covered under

MUDRA loans:-

1) Transport Vehicle

Purchase of transport vehicles for transportation of goods and passengers such as auto
rickshaws, small goods transport vehicles, 3 wheelers, e-rickshaws, taxis, etc.
Tractors/Tractor Trolleys/Power Tillers used only for commercial purposes are also
eligible for assistance under PMMY. Two Wheelers used for commercial purposes are
also eligible for coverage under PMMY.

2) Community, Social & Personal Service Activities

Salons, beauty parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and
motorcycle repair shops, DTP and Photocopying Facilities, Medicine Shops, Courier
Agents, etc.

3) Food Products Sector

Activities such as papad making, achaar making, jam/jelly making, agricultural produce
preservation at rural level, sweet shops, small service food stalls and day to day catering
/ canteen services, cold chain vehicles, cold storages, ice making units, ice cream
making units, biscuit, bread and bun making, etc.

4) Textile Products Sector / Activity

22
Handloom, power loom, khadi activity, chikan work, zari and zardozi work, traditional
embroidery and hand work, traditional dyeing and printing, apparel design, knitting,
cotton ginning, computerized embroidery, stitching and other textile non garment
products such as bags, vehicle accessories, furnishing accessories, etc.

5) Business loans for Traders and Shopkeepers

Financial support for on lending to individuals for running their shops / trading &
business activities / service enterprises and non-farm income generating activities with
beneficiary loan size of up to 10 lakhs per enterprise / borrower.

6) Equipment Finance Scheme for Micro Units

Setting up micro enterprises by purchasing necessary machinery / equipments with per

beneficiary loan size of up to 10 lakhs.

7) Activities allied to agriculture

'Activities allied to agriculture', e.g. pisciculture, bee keeping, poultry, livestock-

rearing, grading, sorting, aggregation agro industries, diary, fishery, agri-clinics and
agribusiness centres, food & agro-processing, etc.(excluding crop loans, land
improvement such as canal, irrigation and wells) and services supporting these, which
promote livelihood or are income generating shall be eligible for coverage under
PMMY in 2016-17.

 Financial institution shortlisted in MUDRA Yojana:-

MUDRA YOJANA

Non-Banking Cooperative Bank Banking Institutiuon

Financial Company
(NBFC)

23
Non-Banking Financial institution:-

Nonbank financial companies (NBFCs), also known as nonbank financial institutions

(NBFIs), are financial institutions that offer various banking services but do not have a
banking license. Generally, these institutions are not allowed to take traditional demand
deposits—readily available funds, such as those in checking or savings accounts—from
the public. This limitation keeps them outside the scope of conventional oversight from
federal and state financial regulators.

Nonbank financial companies fall under the oversight of the Dodd-Frank Wall Street
Reform and Consumer Protection Act, which describes them as companies
"predominantly engaged in a financial activity" when more than 85% of their
consolidated annual gross revenues or consolidated assets are financial in nature.
Examples of NBFCs include investment banks, mortgage lenders, money market funds,
insurance companies, hedge funds, private equity funds, and P2P lenders.

Cooperative Banks:-

A co-operative bank is a small-sized, financial entity, where its members are the owners
and customers of the Bank. They are regulated by the Reserve Bank of India (RBI) and
are registered under the States Cooperative Societies Act.

24
The Co-operative Banks have recently been in news after RBI’s restrictions on one of
the leading banks, where they were denied any kind of money withdrawal. This incident
of the Punjab and Maharashtra Co-operative Bank (PMC) has raised questions over the
reliability of such financial entities

Co-operative Banking has proved to be an asset in terms of acting as a financial

intermediary to agricultural and allied activities, small scale industries, and self-
employed workers.

Banking Institution:-

Banking financial institutions are in the business of taking deposits from the public and
making loans. In addition, they provide other services such as investment banking,
foreign exchange, and safe deposit boxes. These institutions are heavily regulated by
governments to protect consumers and ensure that the banking system is stable.

ReoBanking institutions include commercial banks, savings and loan associations, and
credit unions. Non-banking financial institutions include insurance companies, pension
funds, and hedge funds. So what sets these two groups apart? This article will discuss
the key differences between banking and non-banking financial institutions!

25
 Report Card of MUDRA Yojana: - Last 4 Years

26
.

CHAPTER - 2

RESEARCH METHODOLOGY

27
RESEARCH METHODOLOGY:-

Research Methodology is a way to systematically solve the research problem. The

Research Methodology includes the various methods and techniques for conducting a
research. Research is an art of scientific investigation. In other word research is a
scientific and systematic search for pertinent information on a specific topic. The logic
behind taking research methodology into consideration is that one can have knowledge
about the method and procedure adopted for achievement of objective of the project.
The present research Methodology consist the flowing things needs of the study, scope
of the study, objectives of the study, data collection, sample design and analysis
instrument. The detailed description is given under the flowing heads.

OBJECTIVES OF THE STUDY:-

1. To know the meaning of Mudra Yojana, vision, mission and purpose.

2. To study the who are eligible criteria for Mudra bank loan and document required
for Mudra loan.

RESEARCH DESIGNS:-

Research design is the conceptual structure within which research is conducted. It

constitutes the blueprint for collection, measurement and analysis of data was a
descriptive research. Descriptive research involves collecting numerical through self-
reports collected, through questionnaires or interviews (person or phone), or through
observation. For present study, the research was descriptive and conclusion oriented.

SAMPLING DESIGN:-

1. sampling unit - The target people must be defined that has to be sampled. The
sampling unit of research included that awareness toward Pradhan Mantri Mudra
Yojana in Ambarnath, Thane.

2. Sample size - This refers to number of respondents to be selected from the universe
to constitute a sample. The sample size of 70

28
SAMPLING TECHNIGUE:-

Convenience Sampling was used to select the sample. Convenient sampling is a non-
probability sampling technique that attempts to obtain a sample of convenient elements
In case of convenience sampling, the selection of sample depends upon the discretion
of the interviewer. In this project, Questionnaire Method was used for the collecting the
data. With the help of this method of collecting data, a sample survey was conducted.

DATA COLLECTION: -

Information has been collected from both Primary and Secondary Data.

⚫ Primary data: - Primary data are those which are fresh and are collected for the first
time, and thus happen to be original in character. The primary data was collected
through direct personal interviews (open ended and close ended questionnaires),
Observation Method, Interview Method and Scheduling Method etc.

⚫ Secondary data: - Secondary data are those which have already been collected by
someone else and which already had been passed through the statistical process. The
secondary data was collected through web sites, books and magazines etc.

For the present study purpose primary data is used. Primary data questionnaire method
is collected through questionnaire method. This questionnaire is self-administrated
questionnaire.

NEED OF THE STUDY:-

The government launched the MUDRA bank to ‘fund the unfunded’ small
entrepreneurs. The initiative aims to empower ~58 million small businesses in India
that account for just 4% institutional funding and employ >120 million people, many
of whom are from low-income families.

SCOPE OF THE STUDY:-

The scope of the study was limited to dist Ambarnath.

29
LIMITATIONS OF THE STUDY:-

Time constraints while collecting the secondary data. All the data’s cannot be
generalized.

ANALYSIS TOOLS:-

To analyze the data obtained with the help of questionnaire, following tools/instruments
were used. 1. Liker scale: These consist of a number of statements which express either
a favorable or unfavorable attitude towards the given object to which the respondents
are asked to react. The respondent responds to in terms of several degrees of satisfaction
or dissatisfaction.

2. Percentage and Pie Charts: These tools instruments were used for analysis of data.

Formula of Percentage Method

P: -Q/RX100

P: - Reading in percentage

Q: - Number of respondent bulling in the specific to the Measure

R: - Total number of respondent exit is the population as a wheel.

30
 CHAPTER – 3

REVIEW OF LITERATURER

31
REVIEW OF LITERATURER
1. R. Rupa (2017) has showed that the MUDRA scheme is very much successful in
Tamil Nadu. It is found that the MFIs have contributed substantially to increase the
number of accounts financed under the PMMY.

2. Verma S. (2015) has explained that the design of MUDRA scheme will not only
caters to the financial problems of MSMEs but also give moral support to a lot of young
population to become an entrepreneur.
3. Mehar L (2014) has showed that the financial inclusion in India has increased in the
last few years with new innovations like mobile banking, ultra small branches etc,

4. Dr. J. Venkatesh and MS. R. Lavanya Kumari (2017) has showed that besides the
schemes that are being introduced for the overall growth and development of the
MSME sector, initiatives have been launched which focus solely on entrepreneurs. The
schemes will contribute to the well-being of the individuals engaged in small scale
industries which will positively affect the progress of the whole economy.

5. Rudrawar, M. A. A. & Uttarwar, V. R. (2016) has explained that PMMY can bring
a desired transformation. If it will be applied properly at the bottom level it may act as
a game changing idea and boost the Indian economy. It should include less
documentation and easily accessible. In coming few years, MUDRA will play a crucial
role for the development of entrepreneurship, increase in GDP and development of
employment.

6. Roy, Anup Kumar (2016) has displayed that the small businesses are the foundation
of economic development. A major number of initiatives have been taken in the past
few years in the right direction

7. Mol [Link] (2014) has clarified that there are some issues like money related Illiteracy,
absence of mind fullness and client Securing is high. Reserve Bank of India has started
different activities to improved money related on side ration .Information and
communication technology offers the opportunities enhancement of financial inclusion.

8. Kumar S. (2017) explained the key objectives of Micro Units Development and
Refinance Agency (MUDRA) Scheme. In a developing country like India most of the

32
People are engaged in small businesses. Small businesses face financial problem as a
major problem on their way to development. After identifying the contribution of small
businesses in Indian economy, Government of India launched MUDRA Scheme to
overcome the financial problem. The main focus of MUDRA Scheme is to support
small businesses and entrepreneurs.

9. (Patil & Chaudhari, 2016) emphasized that scarcity of finance is the major obstacle
for small and micro business sector. To solve this problem, Government of India
launched MUDRA Scheme. Through this scheme, Government of India is supporting
small and young entrepreneurs. This scheme will be helpful in supporting small and
micro sector by proving financial assistance at reasonable rates.

10. (Gupta S., 2015) conceptualized that Pradhan Mantri Mudra Yojana (PMMY) was
launched with the aim of funding the unfunded. The problem in the path of Non-
Corporate Small Business Sector (NCSBS) is the scarcity of financial support. Through
PMMY Government of India is trying to bring the NCSBS in the formal banking
channel. It is set up for the development and refinancing activities relating to micro
units.

11. (Singh, 2018) focused on PMMY Scheme, present status of scheme and relevant
suggestions. The researcher explained that the major problem in the growth of Non-
Corporate Small Business Sector is the dearth of financial support from organized
sector. By providing financial support, MUDRA Banks are playing a crucial role in
improving standard of living, increasing job opportunities, increasing national income
and reducing poverty.

12. (February 2018, B.S.) Women entrepreneurs are facing so many problems like
marketing, decision-making, balancing personal and professional life, access to
credit, cut-throat competition, etc. and the government is addressing a few problems
to bring women to the mainstream as entrepreneurs, which contribute to their
development as well as economic development.

13. (Ajay Kumar) The study was conducted in Jammu and Kashmir to ascertain the
relationship between access to finance and the reduction of poverty, and it was found
to have a positive result. Mudra Yojana, which is access to credit for the unbanked, is
reducing poverty.

33
14. (Kumar, 2019). The main goal of Mudra Yojana is to fund the unfunded, and it is
having a positive impact because previously, the unregistered and informal sectors did
not have access to formal credit, but now they do thanks to this scheme. A study was
conducted in Maharashtra to review the Mudra Yojana and it was found that the share
of women in the Shishu category is 75% and the number of accounts opened by women
under this category is 95.78%.

15. Avani.T (2016) studied that how MUDRA Bank helps SMEs to grow. The study
also focused on role, responsibility and performance of MUDRA Bank in the state of
Kerala. This study concluded that just as banking the unbanked, MUDRA bank main
aim is funding the unfunded.

16. Gupta (2015) studied the concept, role, rational and responsibility of MUDRA
Yojana. The study also focused on offerings and functioning of MUDRA Bank. The
study concluded that MUDRA will be a catalyst towards mass entrepreneurship
development, employment generation and higher GDP growth.

17. Kumar (2017) studied the impact of MUDRA Yojana on financial inclusion. The
study also covered the products and objectives of MUDRA Bank. The study concluded
that the small businesses are form the foundation of the economic development needs
to be strengthened and supported.

18. (Godha & Nama, 2017) studied the impact of MUDRA on financial inclusion in
India. They opined that MUDRA has made a big impact in the field of microfinance
and has helped weaker sections and low-income groups in their funding needs. They
suggested that efforts must be made to increase the number of loan sanctions and proper
implementation of the scheme.

19. (Lall, 2018) studied the performance of MUDRA in the state of Uttarakhand.
The author found that demonetization and GST had slowed down the entrepreneurial
activities and the state which has caused a drop in the number of loan sanctions under
MUDRA. The author applauded the initiatives of the state government for organizing
camps and awareness programmes for the effective implementation of the programmes.

20. (Ruhela, Kumar, & Prakash, 2017) discussed about the existing MFI mechanism
and their loopholes in micro financing. They explored the possibilities that how
MUDRA would make a difference in micro financing and how MUDRA would be

34
helpful in regulating the MFIs, so that small business could meet their financial
requirement in a hassle-free manner.

21. (Gupta, Matho, & Dubey, 2017) opined that MUDRA will positively affect the
lives of entrepreneurs engaged in small businesses and also help in shaping the progress
of the economy as a whole. Researchers studied in detail about the performance,
opportunities and benefit of MUDRA and asserted that MUDRA has contributed
significantly to the progress of small business in Jharkhand.

22.(Bakshi & Chawla, 2016)“MUDRA Yojana- new wings for the growth of small
entrepreneurs”, written by Kaman Bakshi and Shilpa Chawla, relates to MFIs and how
they are regulated and the various policy guidelines by which it functions efficiently. It
can be concluded that this scheme that has come up in recent Times, has proven to be
helpful to the organisations and individuals who are poor in finance.

23. (Agarwal, 2017)“Pradhan Mantri MUDRA Yojana-a critical review”, written by

Manish Agarwal and Ritesh Dwivedi, it is noticed that this scheme has been bringing
in finance where it needs it the most, such as the weaker sections of the society,
unfunded population, etc. therefore, it is great initiative taken up by the government of
India. But since it is fairly a new scheme, there are still some things to be taken of.
These include extension of the minority sector, use of Mudra card, etc.

24. (Prakash & Devaki, 2018) “A study of MUDRA in Tamil Nadu” written by Mr.
Prakash, focuses on the various areas of Pradhan Mantra MUDRA Yojana, and analyses
its performance. It was noticed from the studies that the MUDRA scheme is helping to
boost up the small and micro scale industries. It would help aspiring entrepreneurs to
make their place in this competitive world. It will be a very useful tool in the early
stages of the growth of the economy and help converting it into a developed economy.

25. (Mahajan, 2018) “An analysis of performance and impact of MUDRA Yojana
under PMMY in the year 2016”, written by Mr. Mahajan, attempts to find the impact
of the scheme on the small business and small entrepreneurs. It has been noticed that
this has been well accepted in the financial sector of the economy. It would play a big
hand in bringing up the back word sections of the society as well.

35
 CHAPTER – 4

DATA INTERPRETATION & ANALYSIS

36
  Gender:

[Link] Gender Percentage

1 Male 39%
2 Female 61%
TOTAL 100%

Male Female

39%

61%

SOURCE: -Data collected through questionnaire method.

Interpretation:

From the above table it is clear that majority of the respondents that is 60% are male
whereas only 40%respondents are female. Thus it can be concluded that there is a
preponderance of male respondents over the females.

37
 Age:

[Link]. Age Percentage

1 Below 20 Years 53%
2 20-40 42%
3 40-50 5%
4 Above 50 Years 0%
TOTAL 100%

5%0%

Below 20 Years
42% 53%
20 - 40 Years
40 - 50 Years
Above 50 Years

SOURCE: -Data collected through questionnaire method.

Interpretation:

From the above table it is clear that 53% of the respondents are of age group of below
20, 20-40 are 41.9% and above 50 is 5.4% thus it can be concluded that there is a
majority of the respondents in the group of Above 20 Years of people i.e. 53%.

38
 Occupation:

[Link]. Occupation percentage

1 GOVT. Employee 0%
2 Professional 0%
3 Business 0%
4 Student 84%
5 Employee 16%
TOTAL 100%

0%
16%

Government employee
Profesional
Business

84% Student
Employee

SOURCE: - Data collected through questionnaire method.

Interpretation:

From the above table it is clear that majority of the respondents that is 84% are student
which is closely followed by respondents who have Employee. Thus it can be conclude
that there is a majority of the respondents are Student whereas minority of the
respondents are Agriculture.

39
 Annual Income:

[Link]. Annual Income Percentage

1 Below Rs. 10,000 58%
2 Rs. 10,000 – 30,000 31%
3 Rs. 30,000 – 50,000 0%
4 Above Rs. 50,000 11%
TOTAL 100%

11%
0%

31%
58%

Below Rs. 10,000 10,000 - 30,000 30,000 - 50,000 Above Rs. 50,000

SOURCE: - Data collected through questionnaire method.

Interpretation:

From the above table is clear a majority of respondent have below Rs. 10,000 income
which is 58% of the total respondent and closely follow by 10,000-30,000 income
group. Thus it can be conclude that there is a majority of the respondents are below
Rs.10,000 income group whereas minority of the respondents are above Rs. 50,000
income group.

40
 Are you aware about Pradhan Mantri MUDRA Yojana (PMMY)

[Link]. Response Percentage

1 Yes 76%
2 No 24%
TOTAL 100%

Yes No
24%

76%

SOURCE: - Data collected through questionnaire method.

Interpretation:

From the above table and figure it is clear that majority of the respondent i.e. 76%
respondents say yes and 24`% respondents say no towards awareness about Pradhan
Mantri MUDRA Yojana (PMMYY).

41
 If yes, than tells me which year Pradhan Mantri MUDRA Yojana (PMMY)
was launch?

[Link]. Year Percentage

1 2014 13%
2 2015 63%
3 2016 12%
4 2017 12%
TOTAL 100%

2017
12%

2016
12%

2015
63%

2014
13%

0% 10% 20% 30% 40% 50% 60% 70%

SOURCE: - Data collected through questionnaire method.

Interpretation:

From the above table majority of respondent says which are a 14.70% PMMY is launch
in 2014, 64.70% PMMY is launch in 2015 &closely follow by 13.20% of respondent
which say PMMY launch in 2016. And 11.80% respondent are say PMMY was launch
in 2017.

42
 How did you come to know about Pradhan Mantri MUDRA Yojana (PMMY)?

[Link]. No. of Respondents Percentage

1 Friends & Relatives 42%
2 Advertisement & media 40%
3 Bank or Financial 15%
Institution
4 Other 3%
TOTAL 100%

ADVERTISMENT OR MEDIA 40%

BANK OR FINANCIAL
INSTITUTION 15%

FRIENDS & RELATIVES 42%

OTHER 3%

0% 10% 20% 30% 40% 50%

SOURCE:-Data collected through questionnaire method.

Interpretation:

In above table shows that, out of 50 respondent 38.90% come to know about PMMY
by advertisement &media 15.30% from bank or financial institution & 43.10% of the
respondent come to know about PMMY through friends & relatives and 4.20% of the
respondent come to know about PMMY through Other.

43
 Did you know about a main objective of Pradhan Mantri MUDRA Yojana
(PMMY)?

[Link]. Response Percentage

1 Yes 70%
2 No 30%
TOTAL 100%

Yes No

30%

70%

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table show, in out of 50 respondent, 70% respondents were knowing the
objective of PMMY and remaining 30% respondent were not aware about the objective
of PMMY.

44
 If yes, than tell me what is the main objectives of Pradhan Mantri MUDRA
Yojana (PMMY)?

[Link] Response Percentage

1 Development of micro enterprise sector 46%
2 Refinance support 32%
3 Purchase of equipment & new technology 11%
4 Other 11%
TOTAL 100%

DEVELOPMENT OF MICRO ENTERPRISES

46%
SECTOR

REFINANCE SUPPORT 32%

PURCHASE OF EQUIPMENT & NEW

11%
TECHNOLOGY

OTHER 11%

0% 10% 20% 30% 40% 50%

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table, 47.80% respondent says development of micro enterprise is a main

objective of PMMY, 34.30% says refinancing support, 13.40% say purchase of
equipment & new technology for micro industry & 13.40% say other for micro industry.

45
 Did you know the maximum limit of loan under this scheme ?

[Link] Response Percentage

1 Yes 59%
2 No 41%
Total 100%

41%

59% Yes
No

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table, there are out 50 respondent where 59% Respondent have know the limit
of taking loan under this scheme and 41% respondent have not know the limit of loan
.So be can conclude a minimum respondent have know the loan limit under PMMY.

46
 If yes, than tell me what is the maximum limit of loan under the Pradhan
Mantri MUDRA Yojana (PMMY)?

[Link]. Loan amt. Percentage

1 Below Rs. 3,00,000 26%
2 3,00,000 -6,00,000 30%
3 6,00,000 – 8,00,000 18%
4 Above Rs. 8,00,000 26%
TOTAL 100%

BELOW RS. 3,00,000 26%

3,00,000 - 6,00,000 30%

6,00,000 - 8,00,000 18%

ABOVE RS. 8,00,000 26%

0% 5% 10% 15% 20% 25% 30% 35%

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table, 31.70% respondent have say Rs. 3,00,000 - 6,00,000 is maximum limit
followed by 27% respondent which say Below Rs.3,00,000 is a limit. 27% says Above
Rs. 8,00,000 and remaining 20.60% respondent says Rs.6,00,000 – 8,00,000 is a limit
of taking loan under this scheme. So be can conclude majority of respondent says
Rs.3,00,000 – 6,00,000 is a maximum limit of taking loan under PMMY.

47
 Pradhan Mantri MUDRA Yojana is beneficial for micro industry of country
give your response on the rating scale?

[Link] Response Percentage

1 Strongly agree 19%
2 Agree 43%
3 Neutral 30%
4 Disagree 8%
5 Strongly disagree 0%
TOTAL 100%

50%

45%

40% 43%

35%

30%
30%
25%

20%
19%
15%

10%

5% 8%
0%
0%
Strongly agree Agree Neutral Disagree Strongly Disagree

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table out of 50 respondent 18.90% strongly agree, 43.20% respondent are
Agree, 31.10% respondent are Neutral, 8.10% respondent are Disagree and 0%
respondent are Strongly Disagree PMMY is beneficial for Micro industry. So be can
conclude majority of respondent Agree PMMY is beneficial for micro industry of
country.

48
 Pradhan Mantri MUDRA Yojana has helped to reduce the dependency on
informal financial institution?

[Link] Response Percentage

1 Strongly agree 3%
2 Agree 30%
3 Neutral 37%
4 Disagree 15%
5 Strongly agree 15%
TOTAL 100%

37%

30%

15% 15%

3%

strongly agree Agree Neutral Disagree Strongly

Disagree

SOURCE:-Data collected through questionnaire method.

Interpretation:

In above table, out of 50 respondent 2.80% respondent are strongly agree, 30.60% are
agree and 37.50% respondent are neutral, 15.30% & 15.30% are disagree and strongly
disagree PMMY is reduce dependency on informal financial institution. So be can
conclude majority of respondent say PMMY is reduce a dependency on informal
financial institution

49
 Pradhan Mantri MUDRA Yojana is capable to provide employment in
country?

[Link]. Response Percentage

1 Agree 47%
2 Neutral 42%
3 Disagree 7%
4 Strongly disagree 4%
TOTAL 100%

47%
42%

7%
4%

Agree Netural Disagree Strongly Disagree

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table out of 50 respondent 47.30% respondent are agree, 41.90% respondent
are neutral and 6.80% or 4.10% are disagree or Strongly Disagree toward PMMY is
capable for provide employment in country So be can conclude majority of respondent
agree toward PMMY is capable for provide employment in country.

50
 Pradhan Mantri MUDRA Yojana is an effective policy to measure or solve the
financial problem of micro industry of India?

[Link]. Response Percentage

1 Strongly agree 1%
2 Agree 4%
3 Neutral 32%
4 Disagree 48%
5 Strongly disagree 15%
TOTAL 100%

Strongly
15%
Disagree

Disagree 48%

Neutral 32%

Agree' 4%

Strongly agree 1%

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table out of 50 respondent 48.60% agree, 15% strongly agree, 31.90 neutral,
4.20% disagree and 1.40% are strongly disagree toward PMMY is an effective policy
to measure or solve the financial problems of Micro industry of India. So be can say
majority of respondent are agree.

51
 Pradhan Mantri MUDRA Yojana is helpful in improving the country
economic growth?

[Link]. Response Percentage

1 Agree 52%
2 Neutral 40%
3 Disagree 5%
4 Strongly Disagree 3%
TOTAL 100%

Strongly Disagree 3%

Disagree 5%

Neutral 40%

Agree 52%

SOURCE: - Data collected through questionnaire method.

Interpretation:

In above table out of 50 respondent 52.10% agree, 39.70% respondent are neutral, 15%
respondent are disagree and 3% are strongly disagree toward PMMY is helpful in
improving the country economic growth So majority of respondent think or agree
PMMY is helpful in growth of economy of country.

52
 There is need up pace the extant of awareness about this scheme?

[Link]. Responses Percentage

1 Yes 82%
2 No 18%
TOTAL 100%

18%

Yes
No

82%

SOURCE: - Data collected through questionnaire method.

Interpretation:

So above table out of 50 respondent 82% says yes for pace the extant of awareness
about this scheme and 18% says no for pace the extant of awareness about this scheme.

53
 CHAPTER – 5

SUGGESTION, FINDING & CONCLUSION

54
SUGGESTION:-
Pradhan Mantri Mudra Yojana aim to empower every Indian and enable them to stand
on their own feet. The programmed recognizes the challenges faced by micro industry
and women entrepreneur in setting up enterprises, obtaining loans and other support
needed from time to time for succeeding in business The programme, therefore,
endeavors to create an ecosystem which facilitates and continues to provide a
supportive environment for doing business. The objective of the Pradhan Mantri Mudra
Yojana To be an integrated financial and support services provider par excellence
benchmarked with global best practices and standards for the bottom of the pyramid
universe for their comprehensive economic and social development.

The focus area, with regards to implementation of Pradhan Mantri Mudra Yojana is
listed below.

 Increasing loans sanctioned and disbursed by financial institutions.

 Connecting request of potential borrowers to the right handholding entities.
 Handholding events organized subsequent to sanction of loan. • Converging
Pradhan Mantri Mudra Yojana with existing schemes of govt. of India or state govt.
 Adopting innovation methods for implementation of scheme.
 Ensuring transparency and accountability in implementation of the scheme.
 Government should run awareness program for people's awareness of Pradhan
Mantri Mudra Yojana scheme.
 Pradhan Mantri Mudra Yojana should have separate plans for woman borrower.
 Essential to provide adequate training on planning, organizing, directing,
controlling of Marketing and finance

55
FINDING:

 From the above table it is clear that majority of the respondents that is 60% are
male where as only 40%respondents are female. Thus it can be concluded that
there is a preponderance of male respondents over the females.
 From the above table it is clear that 53% of the respondents are of age group of
below 20, 20-40 are 41.9% and above 50 is 5.4% thus it can be concluded that
there is a majority of the respondents in the group of Above 20 Years of people
i.e. 53%.
 From the above table it is clear that majority of the respondents that is 84% are
student which is closely followed by respondents who have Employee. Thus it
can be conclude that there is a majority of the respondents are Student where as
minority of the respondents are Agriculture
 From the above table is clear a majority of respondent have below Rs. 10,000
income which is 58% of the total respondent and closely follow by 10,000-
30,000 income group. Thus it can be conclude that there is a majority of the
respondents are below Rs.10,000 income group where as minority of the
respondents are above Rs. 50,000 income group.
 From the above table and figure it is clear that majority of the respondent i.e.
76% respondents say yes and 24`% respondents say no towards awareness about
Pradhan Mantri MUDRA Yojana (PMMYY).
 From the above table majority of respondent says which are a 14.70% PMMY
is launch in 2014, 64.70% PMMY is launch in 2015 &closely follow by 13.20%
of respondent which say PMMY launch in 2016. And 11.80% respondent are
say PMMY was launch in 2017.
 In above table shows that, out of 50 respondent 38.90% come to know about
PMMY by advertisement &media 15.30% from bank or financial institution &
43.10% of the respondent come to know about PMMY through friends &
relatives and 4.20% of the respondent come to know about PMMY through
Other.
 In above table show, in out of 50 respondents, 70% respondents were knowing
the objective of PMMY and remaining 30% respondent were not aware about
the objective of PMMY.
 In above table, 47.80% respondent says development of micro enterprise is a
main objective of PMMY, 34.30% says refinancing support, 13.40% say
purchase of equipment & new technology for micro industry & 13.40% say
other for micro industry
 In above table, there are out 50 respondent where 59% Respondent have know
the limit of taking loan under this scheme and 41% respondent have not know
the limit of loan .So be can conclude a minimum respondent have know the loan
limit under PMMY

56
 . In above table, 31.70% respondent have say Rs. 3,00,000 - 6,00,000 is
maximum limit followed by 27% respondent which say Below Rs.3,00,000 is a
limit. 27% says Above Rs. 8,00,000 and remaining 20.60% respondent says
Rs.6,00,000 – 8,00,000 is a limit of taking loan under this scheme. So be can
conclude majority of respondent says Rs.3,00,000 – 6,00,000 is a maximum
limit of taking loan under PMMY.
 In above table out of 50 respondent 18.90% strongly agree, 43.20% respondent
are Agree, 31.10% respondent are Neutral, 8.10% respondent are Disagree and
0% respondent are Strongly Disagree PMMY is beneficial for Micro industry.
So be can conclude majority of respondent Agree PMMY is beneficial for micro
industry of country.
 In above table, out of 50 respondent 2.80% respondent are strongly agree,
30.60% are agree and 37.50% respondent are neutral, 15.30% & 15.30% are
disagree and strongly disagree PMMY is reduce dependency on informal
financial institution. So be can conclude majority of respondent say PMMY is
reduce a dependency on informal financial institution
 In above table out of 50 respondent 47.30% respondent are agree, 41.90%
respondent are neutral and 6.80% or 4.10% are disagree or Strongly Disagree
toward PMMY is capable for provide employment in country So be can
conclude majority of respondent agree toward PMMY is capable for provide
employment in country.
 In above table out of 50 respondent 48.60% agree, 15% strongly agree, 31.90
neutral, 4.20% disagree and 1.40% are strongly disagree toward PMMY is an
effective policy to measure or solve the financial problems of Micro industry of
India. So be can say majority of respondent are agree.
 In above table out of 50 respondent 52.10% agree, 39.70% respondent are
neutral, 15% respondent are disagree and 3% are strongly disagree toward
PMMY is helpful in improving the country economic growth So majority of
respondent think or agree PMMY is helpful in growth of economy of country.
 So above table out of 50 respondent 82% says yes for pace the extant of
awareness about this scheme and 18% says no for pace the extant of awareness
about this scheme.

57
CONCLUSION:-

The study concluded that PMMY is a great initiative taken by the GOI. Due to it, there
is a big change in the area of micro finance. The scheme will help the weaker section,
low income group and unfunded population and also will increase the competition.
Financial inclusion through PMMY increases the opportunities for credit requirement
and refinance.

According my study mostly people are aware about Pradhan Mantri Mudra Yojana. In
study people's response is Pradhan Mantri Mudra Yojana capable to provide
employment in country. So MUDRA will provide refinance support for Micro Industry
Most people know about then process of taking a loan in Pradhan Mantri Mudra Yojana.
Therefore, the government has to bring awareness in potential Pradhan Mantri Mudra
Yojana through conducting awareness programmers, showing film slides, T.V
interview, panel discussion, seminars, workshops, and symposiums.

58
 BIBLIOGRAPHY

REFERENCE:
1. Kumar, S. (2017). Impact of Mudra Yojana on Financial Inclusion. 6th International
Conference on Recent Trends in Engineering, Science & Management, (pp. 861-865)

2. Gupta, S. (2015). MUDRA: Financial Inclusion of the Missing Middle. Indian

Journal of Applied Research, V (11), 277-279.

3. Patil, S. G., & Chaudhari, P. T. (2016). MUDRA Helping Hand to Non-Corporate

Small Business Sector (NCSBS). Splint International Journal of Professionals, III (3),
126-128.

4. Singh, K. R. (2018). Development of Micro, Small and Medium Enterprises through

MUDRA Loans with Special Reference to Manipur. Abhinav National Monthly
Refereed Journals of Research in Commerce & Management, VII (1), 55-61

5. R. Rupa (2017), Progress of MUDRA with the special reference of Tamil Nadu.

6. Verma S. Chandra (2015), Mudra Bank to “Fund small Businesses”.

7. Mehar, L. (2014). FINANCIAL INCLUSION IN INDIA.

8. Dr. J. Venkatesh and Ms. R. Lavanya Kumari (2017) Performance of MUDRA

bank: a study on financial assistance to MSME sector.

9. Rudrawar, M. A. A., &Uttarwar, V. R. (2016). An Evaluatory Study of MUDRA

Scheme. International Journal of Multi-faceted and Multilingual Studies.

10. Roy, Anup Kumar (2016). “Mudra Yojana-A Strategic tool for Small Business
Financing”, International Jopurnal of Advance Research in Computer Science and
Management Studies.

11. Mol, S. TP (2014) Financial Inclusion: Concepts and Overview in Indian Context.
Abhinav International Monthly Refereed Journal of Research in Management &
Technology.

59
12. B.S, P. R. ((February. 2018). Women Entrepreneurship and Government
Support in Present Scenario in the Context of India. IOSR Journal of 609 Journals
of Positive School Psychology Business and Management (IOSR-JBM), PP 25-28.

13. Ajay Kumar SALGOTRA, P. K. ((2021). Does Access to Finance Eradicate

Poverty? A Case Study of Mudra Beneficiaries. Journal of Asian Finance, Economics
and Business Vol 8 No 1, 637–646.

14. Kumar, D. A. (2019). A Study on the Performance of Pradhan Mantri Mudra

Yojana in India. RESEARCH REVIEW International Journal of Multidisciplinary, PP
270-271.

15. Avani.T (2016). “How The MUDRA Bank Helps Sme‟s To Grow”, Impact:
International Journal Of Research In Applied, Natural And Social Sciences, ISSN (E):
2321 -8851 Vol. 4, Issue 8.

16. Gupta (2015) “MUDRA: Financial Inclusion of the Missing Middle Volume‟‟,
Indian Journal of Applied Research: 5, Issue: 11, November 2015, ISSN – 2249 -555X.

17. Kumar (2017) “IMPACT OFMUDRA YOJANA ONFINANCIAL INCLUSION”,

International Conference on Recent Trends in Engineering, Science &Management,
ISB-978- 93 – 86171 21-4.

18. Godha, A., & Nama, D. (2017).Pradhan Mantri Mudra Yojana: A New Financial
Inclusion Initiative. International Journal of Engineering Technology, Management,
and Applied Sciences, 5 (3), 200-204.

19. Lall, D. A. (2018, July). A STUDY ON CRITICAL ANALYSIS OF

MUDRAYOJANA IN UTTARAKHAND. International Journal of Social Science and
Economic Research, 03(07).

20. Ruhela, S., Kumar, K., & Prakash, D. (2017, May). MUDRA BANK: A
PARADIGM SHIFT IN REFINANCING AND REGULATING MFIS IN INDIA.
International Journal of Business Quantitative Economics and applied Management
Research, 03(02).

60
21. Gupta, S. K., Matho, K. N., & Dubey, N. D. (2017). Role of MUDRA Yojana in
Promotion of Financial Inclusion in Jharkhand. International Journal of Trend in
Scientific Research and Development, 01(06), 1085-1089.

22. Bakshi, K., & Chawla, S. (2016). MUDRA YOZNA- NEW WINGS FOR
GROWTH OF SMALL ENTREPRENEURS, (July), 10–14.

23. Agarwal, M. (2017). Pradhan Mantri Mudra Yojana: a Critical Review.

Parikalpana - KIIT Journal of Management, 13(2), 97–106.

24. Prakash, M., & Devaki, B. (2018). A Study on the Performance of Mudra in Tamil
Nadu. International Journal of Multidisciplinary Research and Development, 2(5), 133–
136.

25. Mahajan, A. (2018). An analysis of performance and impact of MUDRA Yojana

under PMMY in the year 2016. Research Journal of Management Sciences, 7(3), 1–5.

61
 WEBILOGRAPHY

WEBSITES:-

[Link]
[Link]

[Link]

[Link]
W_OF_PRADHAN_MANTRI_MUDRA_YOJANA

[Link]

[Link]

[Link]
t%2Fpublication%2F359973808_A_STUDY_AND_REVIEW_OF_PRADHAN_
MANTRI_MUDRA_YOJANA&psig=AOvVaw2_0KAeYi-
17agKirWaZAJG&ust=1677487305014000&source=images&cd=vfe&ved=0CB
AQjRxqFwoTCICn-qjlsv0CFQAAAAAdAAAAABAg

62
ANNEXURE:
Questionnaire on awareness of Mudra Yojana to among people in Ambarnath.

1. Name.......

2. Gender:

a) Male

b) Female

3. Age:

a) Below 20 Years

b) 20-40 Years

c) 40-50 Years

4. Occupation:

a) Government employee

b) Professional

c) Business

d) Student

e) Employee

5. Annual income:

a) Below Rs. 10,000

b) Rs. 10,000 Rs. 30,000

c) Rs.30,000-Rs. 50,000

d) Above Rs. 50,000

6. Are you aware about Pradhan Mantri MUDRA Yojana (PMMY)?

a) Yes

b) No

63
(A) If yes then tells me which year Pradhan Mantri MUDRA Yojana (PMMY) was
launch?

a) 2014

d) 2015

c) 2016

b) 2017

7. How did you come to know about Pradhan Mantri MUDRA Yojana (PMMY)?

a) Friends & Relatives

b) Advertisement or Media

c) Bank or financial Institution

d) Other

8. Did you know about a main objective of Pradhan Mantri MUDRA Yojana
(PMMY)?

a) Yes

b) No

(A) If yes, then tell me what is the main objective of Pradhan Mantri MUDRA
Yojana (PMMY)?

a) Development of micro enterprise sector

b) Refinance support

c) Purchase of equipment & new technology

d) Other

9. Did you know the maximum limit of loan under this Scheme?

a) Yes

b) No

(A) If yes, then tell me what is the maximum limit of loan under the Pradhan
Mantri MUDRA Yojana (PMMY)?

a) Below Rs.3,00,000

b) 3,00,000 – 6,00,000

64
 c) 6,00,000 – 8,00,000

d) Above Rs.8,00,000

10. Pradhan Mantri MUDRA Yojana (PMMY) is beneficial for Micro industry of
country give your response on the rating scale?

a) Strongly agree

b) Agree

c) Neutral

d) Disagree

e) Strongly disagree

11. PMMY has helped to reduce the dependency on informal financial institution?

a) Strongly agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

12. PMMY is capable to provide employment in country?

a) Agree

b) Neutral

c) Disagree

d) Strongly Disagree

13. PMMY is an effective policy to measure or solve the financial problems of

Micro industry of India?

a) Strongly agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

65
14. PMMY is helpful in improving the country economic growth?

a) Agree

b) Neutral

c) Disagree

d) Strongly Disagree

15. There is need up pace the extant of awareness about this scheme?

A) Yes

B) No

If any suggestion…………

66