A Mudra Loan refers to a type of loan provided by the Micro Units Development and Refinance Agency (MUDRA), a government initiative in India. MUDRA was launched in 2015 to support the growth of micro and small businesses, particularly in the non-corporate, non-farm sector, such as individual entrepreneurs, small businesses, and micro-enterprises.
MUDRA offers three categories of loans under the MUDRA scheme:
- Shishu: Loans up to ₹50,000 for new businesses and startups.
- Kishore: Loans between ₹50,000 and ₹5 lakh for businesses that are expanding or growing.
- Tarun: Loans between ₹5 lakh and ₹10 lakh for established businesses that need additional funding for further expansion.
Key Features of Mudra Loans:
- No collateral is required for loans under the MUDRA scheme.
- These loans are offered at affordable interest rates.
- They are provided to individuals, small businesses, and micro-enterprises in a range of sectors, such as manufacturing, retail, agriculture, and services.
- The loans can be used for working capital needs, purchasing machinery or equipment, and improving business infrastructure.
The MUDRA scheme aims to promote entrepreneurship and empower small businesses, particularly in rural areas, helping them access financial support for growth and development.
