IMPACT OF MUDRA LOANS ON WOMEN ENTREPRENEURS IN THE UNORGANIZED SECTOR

Abstract

The unorganized sector provides the backbone for India's economy and employs a disproportionately large share of women, who face persistent structural barriers in terms of access to formal credit, social security, and entrepreneurial opportunities. For the alleviation of these challenges, the Pradhan Mantri Mudra Yojana (PMMY) was launched in 2015, which offers collateral-free microcredit. Particularly, this group targets women entrepreneurs. The aim of this paper is to discuss the contribution of MUDRA loans in ensuring the economic empowerm

The unorganized sector provides the backbone for India's economy and employs a disproportionately large share of women, who face persistent structural barriers in terms of access to formal credit, social security, and entrepreneurial opportunities. For the alleviation of these challenges, the Pradhan Mantri Mudra Yojana (PMMY) was launched in 2015, which offers collateral-free microcredit. Particularly, this group targets women entrepreneurs. The aim of this paper is to discuss the contribution of MUDRA loans in ensuring the economic empowerment of women engaged in the unorganized sector. In developing the framework for analysis, the study has relied on the Women’s Economic Empowerment framework combined with microfinance impact theory and informal sector theory. Through a careful review of existing literature, the study identifies the promise and limitation of microcredit-based interventions.

Keywords: Mudra loans, Women entrepreneurs, Unorganized sector.ent of women engaged in the unorganized sector. In developing the framework for analysis, the study has relied on the Women’s Economic Empowerment framework combined with microfinance impact theory and informal sector theory. Through a careful review of existing literature, the study identifies the promise and limitation of microcredit-based interventions.