Micro-Units Development and Refinance Agency (MUDRA) loan is one of the key measures that the Government of India has initiated to promote Micro, Small and Medium Enterprises (MSMEs) nationwide. Under the scheme, loans of minimum Rs.50,000 and maximum up to Rs.10,00,000 are provided to startup enterprises and small business units. Applying for mudra loan does not require any collateral or security.

As per the sources, total sanctions under this scheme for micro industries are likely to cross Rs 3 lakh crore in the current fiscal.
Under this scheme, total mudra sanctions at Rs 2.82 lakh crore to 541.27 lakh borrowers. These loans are being given as working capital and term loans for business enterprises in manufacturing, trading, and services, including for allied agricultural activities.

The scheme is not at it’s full-fledge and has definitely not been at its best, but it is definitely making way and serving its purpose in the economy. It is helping in creating employment, making women entrepreneurs make their way in the industry and helping other micro and small enterprises. So, I would not say that the scheme is failing, rather it is on its way to bring out the best outcome.