Published Paper Details:

The Government of India introduced Pradhan Mantri Mudra Yojana (PMMY) on 8th April, 2015 for providing loans upto Rs 20 lakhs to non-corporate, non-farm, small and micro enterprises (MSEs). In Nagaland's economic landscape marked by an absence of large scale industrial activity, micro and small enterprises play a crucial role in promoting self employment and entrepreneurship among youth, women and marginalized communities. By providing loans under its various categories- Shishu, Kishore, Tarun and Tarun Plus, the scheme has enabled access to formal credit for local entrepreneurs who remain outside the reach of traditional banking channels. By providing collateral free loan, the scheme has emerged as an important engine in providing the needed impetus to micro and small enterprises in providing a platform for individuals to start their own business, innovate and contribute to the state's economy. However challenges such as lack of financial literacy, infrastructural gaps and awareness has act as deterrents in realizing the scheme's full potential in the state.