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MUDRA Yojana is a scheme launched by the Government of India to provide financial assistance to micro-enterprises in the country. The acronym "MUDRA" stands for Micro Units Development and Refinance Agency.
The scheme was launched in April 2015 and is managed by the Small Industries Development Bank of India (SIDBI). MUDRA Yojana provides loans to micro-enterprises through commercial banks, regional rural banks (RRBs), small finance banks (SFBs), and microfinance institutions (MFIs).
MUDRA Yojana offers three types of loan products, namely Shishu, Kishor, and Tarun, to cater to the different stages of business growth. The Shishu loan is for startups and offers loans up to Rs. 50,000, the Kishor loan is for enterprises that are in the expansion phase and offers loans between Rs. 50,000 to Rs. 5 lakhs, and the Tarun loan is for established enterprises and offers loans between Rs. 5 lakhs to Rs. 10 lakhs.
The scheme aims to provide financial support to micro-enterprises in sectors such as manufacturing, trading, and services, and promote entrepreneurship among the youth and women in the country. The loans provided under MUDRA Yojana are collateral-free and have flexible repayment options, making it easier for micro-enterprises to access credit.
MUDRA Yojana has been successful in providing financial assistance to micro-enterprises in India, with over 24 crore beneficiaries receiving loans worth more than Rs. 15 lakh crores since its inception. The scheme has contributed significantly to the growth of the MSME sector in the country and has played a crucial role in achieving the government's vision of "Atmanirbhar Bharat".
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