ISSN: 2277-9655

[Rajeev* et al., 6(7): July, 2017] Impact Factor: 4.116

IC™ Value: 3.00 CODEN: IJESS7

IJESRT
INTERNATIONAL JOURNAL OF ENGINEERING SCIENCES & RESEARCH
TECHNOLOGY
IMPACT OF MUDRA LOAN SCHEME ON MICRO & SMALL PRINTING UNITS
Mr. Rajeev*1 & Mr. Dhirender2
*1
Manager Punjab National Bank, Branch Office, GJUS&T, Hisar, Haryana
2
Technical Officer,UFLEX Ltd., Noida, U.P.

DOI: 10.5281/zenodo.834456

ABSTRACT
Micro and small firms consist largest job provider sector of any industry. Just like any other industry printing
industry also have large number of micro and small firms. MUDRA scheme was launched in 2015 envisaging
that this scheme will prove as game changer.Under this scheme loan in three categories i.e. Shishu, Tarun and
Kishore was provided to individuals and firms without any collateral security or third party guarantee. This
scheme attracted attention of different section of society.This scheme was launched to promote
entrepreneurship. This survey work is carried out to understand the impact of MUDRA scheme on micro and
small printing firms.

KEYWORDS: MUDRA,Micro & Small Firm, Technology Up-gradation ,Capacity Building.

I. INTRODUCTION
Printing industry consist of small and large printing units, on the one hand large units are managed by big
corporate houses who have sufficient funds while on the other hand small units (Screen printer, binder, sheet
fed offset printer, envelope making machine, desktop publishing ) are run by individual or partnership firms
who have limited sources funds. This is a major constraint faced by them which creates a big hindrance in their
growth and expansion. MUDRA scheme was prepared keeping in view these micro and small units to provide
them sufficient fund for their present and future business needs. Under this scheme borrower can take loan upto
Rs. 10 lakhs without any collateral security and third party guarantee. The entrepreneur can establish or expand
his business using this facility. This scheme helped the small printing and allied industry a lot by enabling them
to procure small and medium size machineries which create synergy effect in their production capacity
[1],[2],[3].

II. RESEARCH OBJECTIVES

MUDRA scheme is a dream project of Indian Govt. to promote the entrepreneurship among the Indian youth so
that they can become the job creator instead of job seeker.To accomplish this objective Indian Govt.allotted a
huge corpus of twenty thousand crores and this survey was conducted to understand the impact of this scheme
on micro and small printing firms.
The objective of this survey is:-
 To understand the impact of MUDRA scheme on micro and small printing firms situated in a semi
urban area.

III. RESEARCH METHODOLOGY

The method use to carry out the research was survey based. A set of suitable questions was prepared which are
relevant with this work (Appendix-1) .This questionnaire was provided to owner of100printing firms and they
were asked to respond. We selected only micro and small printing units near Hisar region. Data was collected
and analysed using suitable techniques like bar graphs and pie charts. The result and discussion of this work will
help to reader to understand the impact of this scheme on micro and small printing units.

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IV. DATA COLLECTION AND ANALYSIS

Do you know about MUDRA scheme

This result shows about awareness of scheme. In the survey it is indicated that 89% of the printer was well
aware about the scheme but there were nearly 11% printer who were unaware about the scheme as shown in
Fig.1.

Yes No

11%

89%

Fig.1.Awareness about MUDRA Scheme

Did you avail loan under this scheme

From the survey it was found that high no of printer i.e nearly 58% avail loan under this scheme and 16% have
applied and their loan application is under consideration of bank. While 26% respondent informed that they did
not avail loan under this scheme as shown in fig.2.

Under
Consideration
16%

No Yes
26% 58%

Fig.2. Availment of Loan by Printers

Under which category of MUDRAPrinters avail loan

This section of survey depicted that 65% of printer who avail loan under this scheme availed loan between 5-10
lac i.e Kishore scheme and 23% availed loan under Tarun scheme. Very few printer also availed loan under
scheme Shishu i.e. upto 50 thousand as shown in Fig.3.

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Upto 50
Thousand
12%

50 Thousand-5
Lakhs
5-10 Lakhs
23%
65%

Fig.3. Category of MUDRA Printers avail loan

Did you face any difficulty to take loan

In survey 70% printer revealed that they got loan very easily without any hassle. While 30% have to face some
difficulty to complete paper demanded by bank official as shown in fig.4.

No
30%

Yes
70%

Fig.4. Difficulty faced by Printers

How did you utilize the loan amount

During survey printer inform that they utilise the loan amount for various activity. 40% printer informed that
they upgraded their machine with the help of MUDRA loan. While 36% used loan amount for addition in line
activity. 23% printer used MUDRA scheme for their working capital and some printer also used loan for
improvement of premises as shown in fig.5.

50%
% of Printers

40%
30%
20%
10%
0%
Technology Inline Activity Improvement Working Stock
Upgradation Addition of Premises Capital Purchase

Purpose of Funding
Fig.5. Utilization of Loan Amount

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What machinery did you purchase by using funds taken under MUDRA scheme
54% printer informed that they purchase gluing and cutting and 42% purchased varnishing and coating
machine 18% of the printer add another machine in their unit while only 12% purchased binding units some
printer also prepare plate exposing and developing section but their no is only 6%.

What impact do you feel on your business after availing loan

Survey shows that 35% printer think that their production capacity increased tremendously.48% respondent
informed that now they have better financial security as compared to earlier. 22% printer revealed that their
profit were increased while 17% printer feels that the quality of their product were improved.10% printer
informed that they have better risk bearing capacity by availing this loan (Fig.6.).

50%
40%
% Printers

30%
20%
10%
0%
Increased Increased Better Print Better Risk bearing Better
Turnover Profit Quality Financial service
Security

Impact on Business

Fig.6. Impact printers feel on business after availing MUDRA loan

Suggestion for improvement to Govt.

In survey 48% printer informed that the loan amount should be increased under the scheme and 29% suggested
that CGTMSE fees should be less. Nearly 21% feels that proper guidance should be provided by organising
camps. There were some printer i.e 6% who suggested bank should give rejection reason so that they can apply
a fresh application to avail loan.

V. RESULT AND DISCUSSION

The data was collected to understand that what changes this MUDRA scheme broughtto micro and small
printers, how they utilized the funds and did this effect their business. The survey revealed that printers utilised
the funds they got from the financial institution to upgrade their machines. Some printer also utilize funds to add
in line activity to their production chain.This helped these small printers to complete the whole job work on their
own. Sample questionnaire is presented for easy understanding of readersin appendix-I.

VI. CONCLUSION
Several important finding came out of this survey based research among the micro and small printing units and
following conclusion can be drawn:
1. 40% printer upgraded their machinery by purchasing high end modelwith the help of funds obtained
under MUDRA scheme.
2. 36% of micro and small printer utilised this money to add in line activity as a result they are capable of
completing the whole process of job work.
3. MUDRA scheme gave sense of financial security to 23% printer by providing funds for their daily
need in the form of working capital.
4. Survey also revealed that 48% printer are of the opinion that the ceiling amount under the scheme
should be raised to benefit more printers.

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VII. REFERENCES
[1] Neeraj Arya (2013) “MSMEs and the Growing Role of Industrial Clusters”, India Brand Equity
Foundation Report, www.ibef.org.
[2] Shenti Kumar (2017) “Impact of Mudra Yojana on Financial Inclusion”, 6th International Conference
on Recent Trends in Engineering, Science & Management, ISBN 978-93-86171-21-4, page no. 861-
865.
[3] Dr. J. Venkatesh and Ms. R. Lavanya Kumari (2015)“PERFORMANCE OF MUDRA BANK: A
STUDY ON FINANCIAL ASSISTANCE TO MSME SECTOR” International Journal of Research in
Economics and Social Sciences, Volume 5, Issue 7, page no. 185-191

APPENDIX-1

1. Do you know about this scheme.

a) [ ] Yes b) [ ] No

2. Did you avail loan under this scheme.

a) [ ] Yes b) [ ] No

3. Under which category of MUDRA you avail loan.

4. Did you face any difficulty to take loan.

a) [ ] Yes b) [ ] No

5. How did you utilize the loan amount.

6. What machinery did you purchased by using fund

7. What impact do you feel on your business after availing loan.

8. Suggestion for improvement to govt.

CITE AN ARTICLE
Mr, Rajeev, and Dhirender Mr. "IMPACT OF MUDRA LOAN SCHEME ON MICRO &
SMALL PRINTING UNITS." INTERNATIONAL JOURNAL OF ENGINEERING SCIENCES
& RESEARCH TECHNOLOGY 6.7 (2017): 687-91. Web. 25 July 2017.

http: // www.ijesrt.com© International Journal of Engineering Sciences & Research Technology

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