Mudra Yojana Essay: The main idea of Mudra Yojana was organized, initiated and set up by Prime Minister Narendra Modi. The goal of this Yojana is to fulfil all the funding requirements of Non-Corporate small businesses.
The scheme provides financing and non-financing opportunities for small business sectors and microfinance institutions. This program aims to aid the start-ups, entrepreneurs who are restricted by an adequate budget for running their business.
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Long and Short Essays on Mudra Yojana for Students and Kids in English
We are providing students with essay samples extended essay of 500 words and a short essay of 150 words on the topic Mudra Yojana for reference.
Long Essay on Mudra Yojana 500 Words in English
Long Essay on Mudra Yojana is usually given to classes 7, 8, 9, and 10.
On 8th April 2015, Prime Minister Modi launched MUDRA scheme, which is Micro Unit Development and Refinance Agency. This scheme was launch to uplift entrepreneurs and small businesses of Micro Small Medium Enterprises (MSME). According to the project, the Mudra Bank will provide low rates loan to a microfinance institution (MFI) which in turn will offer the credit to MSME.
The primary mission of this scheme is to deliver loans up to ten lakhs to micro-enterprises which by the performed by NSSO in 2013 were 5.77 crores in number. Small finance banks, cooperative banks, non-banking financial company (NBFCs), MFIs and commercial banks provide these loans.
The three types of loans which are sanctioned under this Yojana are i. Shishu loan which provides loans up to fifty thousand rupees, ii. Kishore loan which offers loans starting from fifty thousand rupees up to five lakh rupees and iii. Tarun loan which provides loan starts from above five lakh rupees up to 10 lakh rupees. The interventions have been named ‘Shishu’, ‘Kishore’, and ‘Tarun’ to denote the growth or development and funding needs of the beneficiary entrepreneur or units. These names also provide a reference point for the next face of progress to which they can look forward. The loan under PMMY has no subsidy; however, if the loan application is linked with any government scheme, in which the government is granting capital subsidy, it will be qualified under PMMY also.
Any individual who has Indian Citizenship can apply for this scheme if he has a business plan for a non-farm sector income engendering activity like processing, trading, manufacturing or service sector and whose need of credit is lower than 10 lakh rupees. An individual can directly approach an MFI, NBFC or Bank for availing MUDRA loans under Prime Minister Mudra Yojana (PMMY).
Individuals who want to avail assistance under Pradhan Mantri Mudra Yojana can visit their local branch of any of the financial institutions present in their regions like Regional Rural Banks and Cooperative banks, PSU banks, Foreign banks, MFIs, NBFC and Private sector banks. Assistance about the approval of the loan shall be as per the eligibility criteria of the respective lending institutions.
The significant benefit of this Yojana is that it is an excellent device for job formation as Prime Minister Mudra Yojana created about 5.5 crore jobs. Other benefits of the Yojana are the development of the economy, reduction in regional imbalance, the industrialization of rural areas and certified equitable distribution of national income.
The challenges which came in the way of Mudra were problems like fraudulent loans, low financial literacy, lack of market development, Bank NPA, delay in processing and poor grievance redressal.
Mudra Yojana is a practical step towards the development of the country’s economy and in enhancing the income generation in the country. The Revolutionary change in the zone of microfinance also took place due to the Yojana. The scheme was introduced to help the low-income group, unfunded population and the weaker section of the country, and it is successfully doing so.
Short Essay on Mudra Yojana 150 Words in English
Short Essay on Mudra Yojana is usually given to classes 1, 2, 3, 4, 5, and 6.
Pradhan Mantri Mudra Yojana also is known as just Mudra Yojana is one of the most substantial endeavours of Prime Minister Narendra Modi to provide banking facilities to the unbanked population. To make the neglected section of the community self-dependent and self-reliant, Prime Minister Modi always highlighted the significance of bringing the unbanked people under mainstream banking.
MUDRA implies to Micro Units Development and Reliance Agency. After the success of PM Jan Dhan Yojana, this scheme was introduced. As the population which are engaged in small businesses always needs microfinance to help their business and also their daily business needs, PM Mudra Bank Yojana provides them in facilitating micro credit up to ten lakh rupees.
Borrowers will have to repay the loans taken in a freehold ranging from five to seven years. PM Mudra already has an amount of more than seventy thousand crore rupees, and this amount would be a great help in increasing the overall output and creating newer job opportunities.
10 Lines on Mudra Yojana Essay in English
1. Mudra Yojana was introduced by Prime Minister Narendra Modi so that entrepreneurs and small business owner could be included in mainstream banking if they need loans.
2. It is said that about fifty-eight million small business owners have benefitted from the Pradhan Mantri Mudra Yojana.
3. PMMY has helped in changing the trend of mainstream banking in which banks only provide loans to secure businesses which later pays back with higher interests.
4. PMMY has helped many young and budding entrepreneurs by delivering institutional finance which was unavailable due to inadequate corpus and unorganized management of credit facilities.
5. PMMY has helped both financial institutions and needy small business owners come on a single platform.
6. This scheme also resolved the central concern of financial institutions which is repayment due to which they could not provide finance to small business owners.
7. The interest rates of Mudra Loans are not fixed, and it depends on the type of borrower’s business, and the bank as each bank has its criteria.
8. There is no formal way to apply for PMMY as one must approach the banks, MFIs or NBFCs and give them a detailed description of their businesses.
9. One must be a citizen of India to avail the Mudra Yojana.
10. The Mudra loan is issued through Mudra credit card with a pre-assigned credit limit.
FAQ’s on Mudra Yojana Essay
Can females belonging from SC, ST or OBC categories apply for Mudra Loans?
The government has clarified that women belonging from SC, ST and OBC categories will be preferred while giving loans under PMMY scheme; however there is no reserved seat for the criteria of preference till now.
What is the minimum age for someone to apply for Mudra Yojana?
The minimum age at which an individual can apply for Pradhan Mantri Yojana is eighteen years.
What are the documents one should have to apply for PMMY?
The documents which are necessary while applying for PMMY are residence proof, identity proof (must be a citizen of India) and application form.
Do Mudra loans require a guarantor?
Mudra loans do not require any guarantor; neither does it require any collateral security from the borrower.