Mudra Bank , Who can Avail Loan and How Much

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MUDRA Micro Unit Development Refinance bank, Launched by Prime Minister Narendra Modi on 8th April 2015. It was first mentioned in the budget with the initial capital of Rs 20,000 Crores. It is responsible for the development and refinances through Pradhan Mantri MUDRA Yojana.

It was mainly operationalized to provide loan to marginalized traders and businessmen. Moreover, the aim was it to partner with local coordinators and provide finance to “Last Mile Financiers” of micro-businesses. However, its main target was to engage young educated or skilled workers and entrepreneurs including women entrepreneurs.

The objective of the bank is to nurture small businesses through different stages of growth and development of businesses. And the term used in it to described different loan seekers are


Shishu: Loan limit is for those whose businesses are just started. Loan cover will be up to Rs 50,000

Kishor: For small businessmen and the range of loan is from 50,000 to 5 lakh.

Tarun: Comes for the Medium businessmen in which loan covers loan up to 10 lakh.

Loans that can be taken under MUDRA yojana are
1. Car loan
2. Public vehicle loan
3. Two-wheeler loan
4. Working capital loan
5. Loan for plant and machinery
6. Revamping the business space

How Can A Small Business Loan Benefit My Business?

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