Loans availed through the Pradhan Mantri Mudra Yojana (PMMY), also known as Mudra loans, led to a 28 per cent rise in jobs generated by establishments which had taken benefit of the scheme, according to an official survey conducted by the government.
The report on PM Mudra Yojana, prepared by the Labour Bureau under the Ministry of Labour and Employment, showed that around 39.3 million people were employed in establishments prior to availing Mudra loans, which increased to 50.4 million after these took benefit of the scheme.
The PMMY was launched in April 2015 to give unsecured loans of up to Rs 10 lakh, with the objective of boosting self-employment. As a result, a total of 11.2 million new jobs, 55 per cent of which accounted for self-employment, were created through Mudra loans between 2015 and 2018, the survey report showed.
Significantly, 89 per cent of beneficiaries found Mudra loans to be sufficient for expanding their business or setting up a new unit and the remaining 11 per cent had to avail loans from other sources, as per the survey report.