AN EMPIRICAL ANALYSIS OF AWARENESS REGARDING MUDRA LOAN SCHEME FOR ENTREPRENEURIAL DEVELOPMENT

Abstract

              This research explored the extent of awareness among the entrepreneurs concerning the Micro Units Development and Refinance Agency (MUDRA) loan schemes aimed at nurturing the micro-level and small enterprises in India. The purpose is to evaluate how potential users of the loan categories Shishu, Kishore, Tarun and Tarun Plus, understand them, and the possibility of entrepreneurial activity which they could stimulate. Through the use of structured questionnaires, the data was collected from entrepreneurs in Chennai. The results show that while many of the respondents were willing to start or expand a business, the level of awareness of the government provided financial services like the MUDRA loan was deficient. The lack of readily available information, inadequate financial literacy, and lack of advertisement of such schemes were the major challenges. This study recommends that financial literacy and campaign awareness aimed at the use of MUDRA loans can aid in addressing the information gap. Information and confidence-building programs aimed at the entrepreneurs would be very vital. There is a need to strengthen the interface between financial institutions and development agencies relating to entrepreneurship training by including scheme materials.