Micro Units Development and Refinance Agency Limited (MUDRA) has been set up for ‘funding the unfunded’ micro enterprises in the country. MUDRA will refinance all banks, Micro-finance Institutions (MFIs) and other lending institutions, which are in the business of lending to micro / small business entities, engaged in manufacturing, trading and services activities. Thus, MUDRA will strengthen the Last Mile Financial Institutions by extending refinance and other development support to expand their outreach. This will in turn help micro businesses across the length and breadth of the country. MUDRA’s mandate also includes developing the micro enterprise sector into a viable economic sector, for which various developmental interventions including financial/ business literacy programmes are planned.
Pradhan Mantri Mudra Yojana (PMMY), a scheme to finance income generating small business enterprises was launched on 08 April 2015 by the Hon’ble Prime Minister, whereby all banks are required to finance micro entrepreneurs upto ` 10 lakh. MUDRA loans are available in three categories. For small business, loans upto `.50000/- is available under the ‘Shishu’ category; beyond ` 50,000 and up to ` 5 lakh under the ‘Kishor’ category and beyond ` 5 lakh and up to ` 10 lakh under “Tarun” category.
PMMY loans will be extended by all Banks such as PSU banks, Regional Rural Banks (RRBs), Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions and Non- Banking Finance Companies.
Any Indian Citizen who has a business plan for income generating micro/small business activity in manufacturing, processing, trading or service sector, and whose credit need is less than 10 lakh can approach a Bank/ MFI for availing of MUDRA loans under PMMY, or can apply online through website of standup India (https://www.standupmitra.in/).