Background/Objectives: To analyse the performance of Micro Unit Development and Refinance Agency (MUDRA) Yojana, an initiative of Government of India to escalate the micro enterprises.
Methods/Statistical Analysis: The data related to MUDRA Yojana mainly sourced from annual reports of MUDRA Yojan and its website, data also have taken from various journal, magazine and periodical, etc. The study has analyzed various credit schemes, and their performances. To achieve objective of the study relevant comparisons have done among schemes, regions, financial institutions, total credit and numbers of accounts by employing statistical tools such descriptive, percentage and ANOVA.
Findings: The specific or more specialised financial institution for serving the credit need of the micro enterprises including SMEs is the need of the hour. The government initiative to escalate micro enterprises by providing financial support through MUDRA Yojana is a successful venture. The growth rate of accounts opening and credit disbursement in various MUDRA Schemes shows positive trend. The scheme has reached widely among marginalised segments, 73.41% of account holders are women and 25.16% are new entrepreneurs. However the northern states of the country show comparatively lesser participation in both creations of accounts as well as sourcing of credit. Majority of accounts are opened under ‘shishu’ scheme and participation Tarun Scheme (Major Projects) is less. The participation of RRBs and PSBs in the scheme is insignificant than private banks, which is not a favourable trend in long run.
Improvements/Applications: Government initiative for financing micro enterprises is moving in a balanced direction, the government should improve the bracket of beneficiaries as well as focus on quality of the credit rather than quantity of the credit.