Pradhan Mantri Mudra Yojana (PMMY) also known as Mudra loans have created 5.1 million new entrepreneurs. In February this year, Prime Minister Narendra Modi had said that 42.5 million people had received loans under the Mudra scheme, fostering self-employment. Only one-fifth or 20.6 per cent of the beneficiaries availed the Mudra loans to set up a new establishment, while the remaining used it to expand their existing businesses.
Loans availed through the PMMY has led to a 28 per cent rise in jobs that were created by establishments that availed the loans, as mentioned in an official survey by the government. The report prepared by the Labour Bureau under the Ministry of Labour and Employment revealed that the number of employees in such establishments increased to 50.4 million from 39.3 million before the loans, the Business Standard reported.
The survey showed that a total of 11.2 million new jobs were created in 2015-18 due to the Mudra loans, out of which 55 per cent were self-employment. Women comprised 62 per cent of these jobs.
The scheme was launched in April 2015 and aimed at giving unsecured loans of up to Rs 10 lakh to boost self-employment. Around 89 per cent of the beneficiaries found the Mudra loans to be sufficient for their business endeavours, while the remaining 11 per cent had to avail extra loans. Out of the 11 per cent, a majority took additional loans from their relatives.
The survey was prepared by principal labour and employment advisor BN Nanda to assess employment generation in all non-farm economic activities under PMMY. The report that surveyed around 94,000 beneficiaries has been approved by the Labour and Employment Minister Santosh Kumar Gangwar. It will soon be made public.