Micro Units Development and Refinance Agency Ltd. [MUDRA] is an NBFC supporting development of micro enterprise sector in the country. MUDRA provides refinance support to Banks / MFIs / NBFCs for lending to micro units having loan requirement upto 20 lakh.
MUDRA provides refinance support to micro business under the Scheme of Pradhan Mantri MUDRA Yojana. The other products are for development support to the sector. The bouquet of offerings of MUDRA is depicted below. The offerings are being targeted across the spectrum of beneficiary segments.
Under the aegis of Pradhan Mantri Mudra Yojana (PMMY), MUDRA has created products/ schemes. The interventions have been named 'Shishu', 'Kishore', 'Tarun' and 'Tarun Plus' to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth to look forward to.
For early-stage startups and micro-enterprises
For established businesses seeking expansion
For well-established businesses with track record
For scaling successful enterprises to next level
With an objective to promote entrepreneurship among the new generation aspiring youth, it is ensured that more focus is given to Shishu Category Units and then Kishore and Tarun and Tarun Plus categories.
Within the framework and overall objective of development and growth of micro enterprises sector under Shishu, Kishore, Tarun and Tarun Plus, the products being offered by MUDRA are so designed, to meet requirements of different sectors / business activities as well as business/ entrepreneur segments.
Micro Credit Scheme is offered mainly through Micro Finance Institutions (MFIs), who deliver the credit up to 1 lakh, for various micro enterprise / small business activities. Although the model of delivery may be through SHGs/JLGs/ Individuals, the loans are given by the MFIs to individual entrepreneurs for specific income generating micro enterprise/ small business activities.
For loans up to ₹1 Lakh - Finance through MFIs
Different banks like Commercial Banks, Regional Rural Banks, Small Finance Banks, Urban Co-operative Banks and NBFCs are eligible to avail refinance support from MUDRA for financing micro enterprise activities. The refinance is available for term loan and working capital loan up to an amount of 20 lakh per unit.
For Commercial Banks / RRBs / Small Finance Banks / NBFCs - Loans up to ₹20 Lakh per unit
Mudra loan is extended for a variety of purposes which result in income generation and employment creation.
For Vendors, Traders, Shopkeepers and other Service Sector activities
Working capital loan through MUDRA Cards
Equipment Finance for Micro Units
Transport Vehicle loans for commercial use only
Loans for agri-allied non-farm income generating activities
Tractors, tillers as well as two wheelers used for commercial purposes only
Following is an illustrative list of the activities that can be covered under MUDRA loans:
Purchase of transport vehicles for transportation of goods and passengers such as auto rickshaws, small goods transport vehicles, 3 wheelers, e-rickshaws, taxis, etc. Tractors/Tractor Trolleys/Power Tillers used only for commercial purposes are also eligible.
Salons, beauty parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and motorcycle repair shops, DTP and Photocopying Facilities, Medicine Shops, Courier Agents, etc.
Activities such as papad making, achaar making, jam/jelly making, agricultural produce preservation at rural level, sweet shops, small service food stalls and day to day catering / canteen services, cold chain vehicles, cold storages, ice making units, ice cream making units, biscuit, bread and bun making, etc.
Handloom, powerloom, khadi activity, chikan work, zari and zardozi work, traditional embroidery and hand work, traditional dyeing and printing, apparel design, knitting, cotton ginning, computerized embroidery, stitching and other textile non garment products such as bags, vehicle accessories, furnishing accessories, etc.
Financial support for on lending to individuals for running their shops / trading & business activities / service enterprises and non-farm income generating activities with beneficiary loan size of up to 10 lakh per enterprise / borrower.
Setting up micro enterprises by purchasing necessary machinery / equipments with per beneficiary loan size of upto 20 lakh.
'Activities allied to agriculture', e.g. pisciculture, bee keeping, poultry, livestock-rearing, grading, sorting, aggregation agro industries, diary, fishery, agri-clinics and agribusiness centres, food & agro-processing, etc. (excluding crop loans, land improvement such as canal, irrigation and wells) and services supporting these, which promote livelihood or are income generating shall be eligible for coverage under PMMY.