Large scale industries have never had any difficulty in securing credit for their enterprises, because of the perception that they offer the highest employment opportunities to the general population. It is shocking to find out that, large industries employ only 1.25 crore people countrywide. It is the small scale industries which falls under the unorganized sector that employs around 12 crore people in the country.

Mudra LoanMicro Units Development and Refinance Agency (MUDRA) is a new institution set up by Government of India as a wholly owned subsidiary Small Industries Development Bank of India (SIDBI) to provide funding for the development and refinancing activities of micro units. It majorly focuses on the non-corporate, non-farm sector income generating activities of micro and small enterprises whose credit needs are below Rs. 10 Lakh.The main objective of this scheme is to 'f