Challenges faced by the Mudra scheme:
✓High non-performing assets or bad loans
✓Limited funds that cannot keep up with the pace of demand
✓Regional disparities in the distribution of benefits
✓Lack of financial literacy among beneficiaries leading to defaults
✓Limited outreach to rural entrepreneurs
✓Collateral requirements for loans above a certain amount make it difficult for many small enterprises to access credit
✓Loan size limitations of up to Rs. 10 lakhs, which is inadequate for many small enterprises with higher capital requirements.
