Mudra
loan is a financial product introduced by the Government of India to provide
financial assistance to micro, small, and medium-sized enterprises (MSMEs) in
the country. "Mudra" stands for Micro Units Development and Refinance
Agency. These loans are aimed at supporting small businesses, startups, and
entrepreneurs by offering them access to finance for various purposes such as
business expansion, working capital needs, purchasing equipment, machinery,
etc.
Mudra loans are categorized into three schemes:
Shishu: This scheme provides loans up to ₹50,000 to
micro-enterprises in their early stages. It targets entrepreneurs who need a
small amount of capital to start their ventures.
Kishor: Under this scheme, loans ranging from ₹50,000 to ₹5,00,000 are provided to businesses that have already started and need funds for expansion.
Tarun: This scheme offers loans ranging from ₹5,00,000 to ₹10,00,000 to
established businesses looking for further growth and development.
These
loans are typically collateral-free and are available through various banks,
microfinance institutions, and non-banking financial companies (NBFCs) that are
registered under the Mudra Yojana scheme. The government aims to promote entrepreneurship and boost economic growth by providing accessible credit facilities to small businesses through the Mudra loan scheme.
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