Paper Details

India has emerging as one of the biggest economies in the world and projected as one of the fastest growing country in the world. In India most of the people are depending upon small scale business as their sources of livelihood. Most of the individuals of India depend on unorganised sectors for loans and other credit facilities which have high rate of interest along with terms and conditions.usually it will lead these people to fall in debt. A prudent fiscal policy and a new thrust to installed projects are key factors contributing to the realization of this present scenario. India having 1.30 billion population, if it does not have vibrant small, medium and micro enterprises to create jobs for the exhausting population, Today micro and medium scale industry provide employment opportunities more than 20% of the working population in India. So it is necessary that this MSME enterprises are provided with Government support in the forms of loan, training, exposure and support in marketing of their products. The major problems faced by small businesses or micro enterprises includes, lack of information, financial illiteracy, lack of financial access and technology barriers, Government of India came up with the PMMY scheme in 2015 to support these enterprises by giving collateral loans to generate entrepreneurship. The Schemes have been successful in providing loans and financial assistance to the MSMEs sector. Also it was found that over 91% of the mudra loans disbursed are below Rs.50000 in shishu scheme In the light of these issues, it is necessary to study and review the effectiveness of PMMY. This study will seek to understand the status of Mudra loans. Such as SHISHU, KISHOR and TARUN. It explores the bank financial performance,Reducing unemployment rate and disbursed amount by the PMMY.

PMMY,MSME, Finance, MUDRA, livelihood, employment