• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • ICSE Solutions
    • ICSE Solutions for Class 10
    • ICSE Solutions for Class 9
    • ICSE Solutions for Class 8
    • ICSE Solutions for Class 7
    • ICSE Solutions for Class 6
  • Selina Solutions
  • ML Aggarwal Solutions
  • ISC & ICSE Papers
    • ICSE Previous Year Question Papers Class 10
    • ISC Previous Year Question Papers
    • ICSE Specimen Paper 2021-2022 Class 10 Solved
    • ICSE Specimen Papers 2020 for Class 9
    • ISC Specimen Papers 2020 for Class 12
    • ISC Specimen Papers 2020 for Class 11
    • ICSE Time Table 2020 Class 10
    • ISC Time Table 2020 Class 12
  • Maths
    • Merit Batch

A Plus Topper

Improve your Grades

  • CBSE Sample Papers
  • HSSLive
    • HSSLive Plus Two
    • HSSLive Plus One
    • Kerala SSLC
  • Exams
  • NCERT Solutions for Class 10 Maths
  • NIOS
  • Chemistry
  • Physics
  • ICSE Books

Mudra Yojana Essay | Essay on Mudra Yojana for Students and Children in English

November 25, 2020 by Prasanna

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.

You can also find more Essay Writing articles on events, persons, sports, technology and many more.

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.

Essay on Mudra Yojana

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.

Essay about Mudra Yojana

FAQ’s on Mudra Yojana Essay

Question 1.
Can females belonging from SC, ST or OBC categories apply for Mudra Loans?

Answer:
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.

Question 2. 
What is the minimum age for someone to apply for Mudra Yojana?

Answer:
The minimum age at which an individual can apply for Pradhan Mantri Yojana is eighteen years.

Question 3.
What are the documents one should have to apply for PMMY?

Answer:
The documents which are necessary while applying for PMMY are residence proof, identity proof (must be a citizen of India) and application form.

Question 4.
Do Mudra loans require a guarantor?

Answer:
Mudra loans do not require any guarantor; neither does it require any collateral security from the borrower.

Filed Under: Essay Writing

Primary Sidebar

  • MCQ Questions
  • RS Aggarwal Solutions
  • RS Aggarwal Solutions Class 10
  • RS Aggarwal Solutions Class 9
  • RS Aggarwal Solutions Class 8
  • RS Aggarwal Solutions Class 7
  • RS Aggarwal Solutions Class 6
  • ICSE Solutions
  • Selina ICSE Solutions
  • Concise Mathematics Class 10 ICSE Solutions
  • Concise Physics Class 10 ICSE Solutions
  • Concise Chemistry Class 10 ICSE Solutions
  • Concise Biology Class 10 ICSE Solutions
  • Concise Mathematics Class 9 ICSE Solutions
  • Concise Physics Class 9 ICSE Solutions
  • Concise Chemistry Class 9 ICSE Solutions
  • Concise Biology Class 9 ICSE Solutions
  • ML Aggarwal Solutions
  • ML Aggarwal Class 10 Solutions
  • ML Aggarwal Class 9 Solutions
  • ML Aggarwal Class 8 Solutions
  • ML Aggarwal Class 7 Solutions
  • ML Aggarwal Class 6 Solutions
  • HSSLive Plus One
  • HSSLive Plus Two
  • Kerala SSLC

Recent Posts

  • 10 Lines on Satya Nadella for Students and Children in English
  • My Childhood Memories Essay | Essay on My Childhood Memories for Students and Children in English
  • Essay On Sports And Games | Sports And Games Essay for Students and Children in English
  • Clean India Slogans | Unique and Catchy Clean India Slogans in English
  • Animals that Start with Z | Listed with Pictures, List of Animals Starting with Z & Interesting Facts
  • Positive Words That Start With S | List of Positive Words Starting With S Meaning, Examples,Pictures and Facts
  • Positive Words that Start with B | List of 60 Positive Words Starting with B Pictures and Facts
  • Humanity Essay | Essay on Humanity for Students and Children in English
  • Teenage Pregnancy Essay | Essay on Teenage Pregnancy for Students and Children in English
  • Save Water Save Life Essay | Essay on Save Water Save Life for Students and Children in English
  • What is Cumulative Frequency Curve or the Ogive in Statistics

Footer

  • RS Aggarwal Solutions
  • RS Aggarwal Solutions Class 10
  • RS Aggarwal Solutions Class 9
  • RS Aggarwal Solutions Class 8
  • RS Aggarwal Solutions Class 7
  • RS Aggarwal Solutions Class 6
  • Picture Dictionary
  • English Speech
  • ICSE Solutions
  • Selina ICSE Solutions
  • ML Aggarwal Solutions
  • HSSLive Plus One
  • HSSLive Plus Two
  • Kerala SSLC
  • Distance Education
DisclaimerPrivacy Policy
Area Volume Calculator