Current Affairs - National - Discussion

The MUDRA Scheme, launched in 2015, was designed to offer collateral-free loans to non-corporate, non-farm small and micro-entrepreneurs across India. It is facilitated by the Micro Units Development and Refinance Agency Ltd. (MUDRA). One of its standout achievements is recording the world’s lowest NPA (Non-Performing Asset) rate at just 3.5%. This low NPA rate indicates that the majority of borrowers are repaying their loans on time, reflecting the success of the scheme in empowering small entrepreneurs while maintaining strong financial discipline. The rate underscores the scheme’s impact on financial inclusion and responsible credit usage.