Volume VI Special Issue IV April 2026

Name of Author : Dr. Abhilash N, Dr. Titto Varghese

Title of the paper : Mudra Loans and Entrepreneurial Motivation Assessing their Role in Advancing Financial Inclusion and the Vision of Viksit Bharat 2047

Abstract: The Pradhan Mantri Mudra Yojana PMMY has been instrumental in promoting entrepreneurship in India by offering financial support to micro and small enterprises. This study evaluates the relationship between the purpose of availing mudra loans, such as starting a new business or expanding an existing one, and the motivating factors influencing entrepreneurs. A survey of 217 respondents was conducted using descriptive and analytical research methods to explore their loan purposes and motivations, including achieving personal dreams, creating profits, leveraging government support, benefiting from low interest rates, and utilizing zero collateral loans. The findings revealed that a significant portion 52% of loans were available for new business ventures, while 48% were available for business expansion. The most influential motivating factor was the absence of collateral requirements, accounting for 68% of the responses. The study employed chi square tests to examine the independence of attributes, concluding that there was no significant relationship between the purpose of availing mudra loans and the motivating factors. This research underscores the need to refine the scheme by addressing gaps, such as raising awareness and offering targeted support for micro entrepreneurs, to maximize its impact on economic development and employment generation. The study underscores the role of Mudra loans in promoting financial inclusion and entrepreneurship, contributing to the broader national agenda of Viksit Bharat 2047.

Keywords : entrepreneurship, ventures, employment and motivation

DOI :

Page Number : 1-10