a business news analysis in this analysis, we research the mudra yojana how a bank face loss, Bad loans, or NPAs, under Mudra scheme in the first nine months of the current financial year 2018-19 have increased almost 53 percent to Rs 14,930.98 crore from Rs 9,769.99 crore last year, according to the obtained under the RTI Act from the Micro Units Development and Refinance Agency (MUDRA)

2. MUDRA scheme:
• MUDRA- Micro Units Development and Refinance Agency
Bank
• Launched by PM Narendra Modi on 8 April 2015
• Objective : Help small Entrepreneur's and Start ups(LIR)
• PMMY : Financing and refinancing options for financial
institutions
• Mudra categorize the business for financing

3. Categories under Mudra:
There are three categories of Mudra scheme:

4. Sishu scheme
• This category focus on startup’s
• Maximum loan amount - up to50,000
• Maximum repayment tenure - up to 5years
• Interest rate -1% per month

5. Kishore Scheme:
• This is for those one who have started business but not
established yet
• Minimum loan amount : >50000
• Maximum loan amount : up to 5 lakhs
• Interest rate :14%-17%

6. Tarun Scheme
• This is for those who requires fund in micro
business(existing)
• Minimum loan amount: 5 lakhs
• Maximum loan amount: up to 10lakhs
• Interest rate : >16%

8. Narendra Modi’s MUDRA yojana spells
trouble for banks; bad loans jump 53%
Presented by
-Sonam Rani
-Virendra Bodele
-Sarath Kumar
-Naresh Yadav
-Siva Sagar Reddy
-Tirumala Venkatesh
Dated:13 march 2019
Source: economic
times

9. Contents
• NEWS Introduction
• NEWS Multimedia
• NEWS : Why?
• NEWS Facts
• NEWS Analysis
• NEWS Conclusion
• NEWS Bibliography

10. Introduction to NEWS
• Bad Loans on NPA’s, increased 53%(from 1st 9months to
2018-19)
• Amounting: Rs 14,930Cr (2018-19) from
9,769.99Cr (2017-18) RTI
• Number of Loans Sanctioned:12Cr
• Credit Disbursed: Rs 2.53lakh Cr (2018-19)

11. Loan Disbursion Data

12. Agency Categorized Data:

13. NEWS Multimedia

14. MUDRA's Contribution to Economy
• Create large scale employment
• Economic stability in terms of growth and export leverage
• Funding assistance to MSME’s
• Encourages inclusive growth in economy
• Major role in “Make In India”

15. Contribution of MSMEs to GDP

16. Government action against NPA’s:
• NPA ordinance: To tackle the NPA Problem
– RBI to intervene directly
– Or appoint oversight committees
– who will provide their stamp of approval

17. Why do mudra loans have credit risk?
• Mudra is a collateral security free loan
• Credit risk lies in potentiality of consumer
• No due diligence of documentation
• Neglecting while disbursing loans

18. What if Increase in NPAs
• NPA affects stability of banks
• NPA affects lending capacity of banks
• NPA affects potential genuine borrowers
• NPA increase ,leads to liquidity crisis
• Establish strong credit monitoring system

19. NPA data of Banks

20. Self backstabbing by banks:
• Improper internal management system
• No due diligence of loan verification

21. Success rate of MUDRA:
• Opened up new avenues for women(40%) and startup’s
• 55% of loan disbursed to ST/SC/OBC
• Employment through MSME’S
• 2.46 lakh crore disbursed in 2017-18
• 12 crore people took the loan

22. Success Data

23. How to control Mudra overflow:
• Improvised credit risk monitoring system
• Proper document evaluation
• Business Strategy assistance to loan taker
• Reduction of target size of loan disbursement

24. Analysis
Economist View
• Increase in MSMEs
• Increase in Employment
• Increase in Export's
contribution
• Increase in own indivisual
Enterprise
Bankers View
• Increase in NPAs
• Stress on other borrowers
• Target setting by Govt-
Pressure on banks

25. Conclusion
• Win-Win in Economist point of View
• Lose-Lose in Bankers point of View
• Good platform for Micro starters
• Need for Proper Credit Risk Management

26. Bibliography
• https://www.businesstoday.in/current/economy-politics/fact-check-on-jobs-
mudra-scheme-narendra-modi-boost-employment-noise/story/281285.html
• https://www.mudra.org.in/
• http://www.mydigitalfc.com/companies-and-markets/mudra-loans-big-source-
oxygen-small-businesses
• https://economictimes.indiatimes.com/small-biz/sme-sector/sidbi-and-
transunion-cibil-launch-msme-pulse/articleshow/63269240.cms?from=mdr
• https://www.businesstoday.in/current/economy-politics/fact-check-on-jobs-
mudra-scheme-narendra-modi-boost-employment-noise/story/281285.html
• https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications#!4

27. Good Times