Curious case of Mudra loan failure and disconnect of BJP's election winning machine -Prabhash K Dutta

Total value of Mudra loans stood at Rs 5.57 lakh crore. Total number of employment generated from this amount stood at 1.12 crore. This means every single employment cost the government around Rs 5 lakh under Mudra Yojana.

* PM Modi launched Mudra Yojana as a flagship job creation programme in 2015
* Recent reports say only 20 per cent Mudra loans led to fresh employment
* Mudra Yojana Survey by Labour Ministry puts cost of each job under this scheme at Rs 5 lakh

Mudra loan is back in news. Intelligentsia, social media and also the people are discussing and debating it after news reports suggested that Prime Minister Narendra Modi's flagship programme has not delivered what the government and the BJP have been saying for over four years.

The government has consistently showcased the Pradhan Mantri Mudra Yojana as a loan scheme that is turning the lakhs of youths into entrepreneurs and generating crores of jobs every year. First reported by the Indian Express earlier this week, the Mudra loan scheme has been able to meet the government's expectations in only 20 per cent of cases. Simply put, only one in five Mudra loans has led to job creation.

This report confirms the concerns raised by some of the bankers dealing with Mudra loans and to whom spoke to last year. reported last year on the problems with the ecosystem of Mudra loans.'s analysis showed that the average of sanctioned loans under Mudra Yojana stood at Rs 46,530 and that of disbursed amount at Rs 45,034. Well below the average per capita income (Rs 1.11 lakh for 2017-18) of Indians, this amount could not be considered enough to launch a start up that could provide jobs to others.

Please click here to read more., 5 September, 2019,

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