AN EMPIRICAL STUDY OF PRADHAN MANTRI MUDRA YOJANA AND ITS IMPACT ON SOCIO-ECONOMIC DEVELOPMENT IN PATNA REGION

Abstract

The Pradhan Mantri MUDRA Yojana has emerged as one of the most significant policy interventions aimed at expanding formal credit access to non-corporate and non-farm micro-enterprises across India. By offering collateral-free loans under progressive categories, the scheme seeks to promote entrepreneurship, generate self-employment and strengthen the economic base of small business owners who traditionally remained outside the formal banking system. In the context of Bihar, and particularly within the Patna region, the growing volume of MUDRA disbursements raises important questions about the developmental quality and socio-economic impact of this credit flow. The present study is designed to examine the contribution of the Pradhan Mantri MUDRA Yojana towards socio-economic development among beneficiaries located in the urban and peri-urban areas of Patna. Drawing upon primary data collected through a structured questionnaire administered to MUDRA loan recipients, the research explores beneficiaries' perceptions regarding awareness and access to the scheme, the extent of business expansion facilitated by the loan, the generation of employment opportunities, and the overall level of satisfaction with the credit experience. The analytical approach combines descriptive assessment with correlational and predictive statistical techniques in order to understand the pathways through which MUDRA financing may influence socio-economic outcomes. The study is expected to generate context-specific insights that can assist banks, financial institutions, policymakers and development practitioners in refining outreach strategies, strengthening post-disbursement support mechanisms and designing complementary interventions in skill development, digital literacy and market linkage. Ultimately, the research contributes to the broader discourse on financial inclusion and the role of micro-credit in fostering inclusive socio-economic progress in one of India's most populous and developmentally significant states.