Mudra Yojana Loan Scheme- Objectives and Goals
India, being a developing country, requires its small entrepreneurs to grow and prosper. Considering the huge population and the associated poverty lines, this is not an easy task to accomplish. To aid this, the Government has come up with the Mudra Yojana Scheme. Mudra is the abbreviation for Micro agents Development and Refinance Agency. Our country boasts of a large number of companies employing many people, but sadly yet a significant part of the population is either unemployed or struggling with their start-ups. With this scheme in action, these struggling businesses will get a boost in the form of micro finances.
Small entrepreneurs are often at the mercy of money lenders who take advantage of them. This scheme looks to reverse all that and empower every Indian irrespective of caste, creed, religion or gender. Three categories have been announced under this scheme. They are Shishu, Kisor and Tarun, each of which will strive to ensure growth under varying ranges of microcredits and microfinance.
Main Objectives of Mudra Yojana Scheme
- Guidelines for microfinancing
This will decide how much microfinances should be invested and where. The eligibility, verification and processing of the Mudra Scheme will be done initially.
- MFI entities registration
The entrepreneurs who think that they are eligible under this scheme can apply for registration. If verified and approved, they will be beneficiaries of this scheme.
- MFI entities supervision
The supervision of the microfinances is done carefully. It is made sure that each eligible candidate receives the stipulated amount without any delay or hassle.
- MFI entities accreditation
To ensure that the applicants are eligible for refinancing under this particular scheme, various verification processes are implemented and accreditation is given.
- To prevent indebtedness and ensure timely recovery
Mudra is a refinancing scheme and not a direct lending scheme. As with any other means of lending money, in case of unwarranted situations if the borrower is unable to pay the money back, debts tend to accumulate over time looming like a dark cloud over the borrower. One of the objectives of the Mudra is to ensure timely recovery of the microfinances to prevent mounting debts.
- Development of a set of standard covenants for last mile micro enterprise lending
Microfinancing and micro enterprise can get really messy without a predefined standard, especially for the last mile lending, when the reach extends to the struggling and economically abused portion of the population. One of the main objectives of Mudra scheme is to clearly set these standards to keep the procedures as clear and transparent as possible.
- Technology solutions for the last mile
The last mile transaction is probably the most important one in the whole process because it is when the entire purpose of reaching out to almost every citizen of India can be achieved. The digital world today has come up with various solutions for this, and this scheme aims to implement those technical solutions with the hope of reaching as many people as possible.
- Formulating and supervising a credit guarantee scheme for loans to micro enterprises
Micro enterprises are businesses on a very small scale that employ hardly a handful of people. When loans are extended to such enterprises, a guarantee of credit must go hand in hand.
- Supporting development and promotional activities in sector
Mudra Yojana Scheme doesn’t just end with refinancing and collecting the payment. It also involves actively supporting any form of development in the sector to which it has refinanced. The ultimate aim is the development of our nation and this scheme strives in all possible ways to achieve that.
- Creating good architecture of last mile credit delivery
Quite a few government schemes do not get implemented completely due to various reasons and somewhere along the way, the focus seems to get completely lost. The Mudra Scheme has taken upon itself as one of its objectives to ensure that the credit delivery happens as promised to every verified individual or enterprise.
India is a land of talented and budding youngsters, held back just because they have neither the opportunity nor the finances to show the world what they have in store. With this scheme in full swing next year, a lot of skilled and creative brains will be empowered to take India to a whole new level on the international frontier.