Mudra ( shishu ) – an effective scheme in startups

Economic Development of a country depends upon the individual development; Creation of more Employment opportunities is the right way to strengthen our Economy. By way of strengthening Small scale units, ultimately more people will get Employment. More over Small scale Industries required less amount of Capital. These are the main reasons to start the scheme MUDRA. The scheme MUDRA was launched in the year 2015 by Government of India. In India most of the people are depending upon small scale businesses as their source of livelihood. Most of the individuals depend on un-organised sectors for loans and other credit facilities which have high rate of interest along with unbearable terms and conditions. Ultimately it will lead these poor people to fall in debts. This paper is an attempt to educate the readers about MUDRA Yojana.


INTRODUCTION
Economic Development of a country depends upon the individual development; Creation of more Employment opportunities is the right way to strengthen our Economy. By way of strengthening Small scale units, ultimately more people will get Employment. More over Small scale Industries required less amount of Capital. These are the main reasons to start the scheme MUDRA [1][2][3]. The scheme MUDRA was launched in the year 2015 by Government of India. In India most of the people are depending upon small scale businesses as their source of livelihood. Most of the individuals depend on un-organized sectors for loans and other credit facilities which have high rate of interest along with unbearable terms and conditions. Ultimately it will lead these poor people to fall in debts. This paper is an attempt to educate the readers about MUDRA Yojana.

METHODOLOGY
The type of the study is Case Study method. It is about MUDRA scheme in important states of South India. The data have been collected from secondary sources like books, journals, magazines, websites and reports of Mudra bank. Simple percentage method is followed to analyse the data.

DATA ANALYSIS AND INTERPRETATION
In the following tables the performance of Mudra Scheme -Category wise (Three categories namely, Shishu, Kishore and Tarun ) in selected states of South India namely Andhra Pradesh, Karnataka, Kerala, Tamilnadu, Telungana and Puducherry is given. The Mudra scheme is given in two different elements called Number of Loan Accounts and Amount Disbursed in the last two financial years 2015-16, 2016-17. The number of Loan in the state Karnataka is higher (3546071) than other states in the year 2016-17, the State Tamilnadu comes in the first position (4506237) in the year 2015-16 followed by the state Karnataka. In the state Kerala even the number of loan (775022) is higher but the disbursement (7.76%) is lower, hence it is noted that their Utilization level is not satisfactory. The state Pudhucherry comparatively low because it's geographical area as well as the population is also low.

MUDRA SCHEME (SHISHU)
The amount of loan (Shishu) was disbursed highly in the State Tamilnadu, then the state Karnataka in both financial years. The performance of other states is highly deviated while comparing these two leading states.
Hence it is concluded that the States Tamilnadu and Karnataka are utilized the MUDRA scheme (Shishu) very effectively.

FINDINGS AND SUGGESTIONS
The states Tamilnadu and Karnataka were performed well in utilizing the scheme MUDRA. The awareness level towards the PMMY is enhanced in the year 2016-17 while comparing the financial year 2015-16. While comparing all the three types of SHISHU, KISHORE and TARUN categories, the first Category Shishuis availed by more number of people. From this we can conclude that there is a necessity of funds at the initial stage of the business. The difference among the three categories is very high. The second and third categories are after availing the first scheme only. There is no much demand for the other two categories. So once the business is stated they manage themselves. It is good initiative from the part of entrepreneurs.

CONCLUSION
PMMY is a good initiative from the part of government to encourage entrepreneurs the MSME sector. Many initiatives has been taken by MUDRA to create awareness about loans for micro enterprises and to enhance the number of loans sanctioned -especially, those under Shishu category by organizing credit camps across the country. In 2016-17, the government has set a disbursement target of Rs.1,80,000 crore -an increase of 47.3 % over the target set for the year 2015-16 and 35.4% above the achievement. If the partner institutions support this MUDRA yojana in same spirit as in the year 2015-16, MUDRA hopes to achieve this target too. The Shishu scheme is helpful to the small scale entrepreneur for start the business successfully. Hence it is concluded that the States Karnataka and Tamilnadu are utilized the MUDRA scheme very effectively.