Mudra Scheme- A Mission for Banking the Un-Banked

Abstract

Tiny, small and medium business undertaking is the catalyst for the socio-economic transformation of
the Nation. With the contribution of about 33.4% in India’s manufacturing output and employment
base of over 120 million the vital role of this sector cannot be undermined in fueling the growth
engine of the economy. The biggest obstacle in to the growth of this sector is the lack of financial
support. Since decades government is paying a good attention in the field of micro finance. Micro
finance is not new to the country and has been a key instrument in providing financial assistance to
informal unorganized sector and generating self employment. But the achievement of micro finance so
far projects a dismal picture with a lot of challenges these institutions (MFIs, SHGs, NBFC and
cooperative societies) are facing.

Key words: undertaking, financial support, unorganized