Mudra loan is a Government of India undertaking, which was started to provide financial support to small businesses in the country. Under this scheme, loans are provided by banks to non-corporate, non-farm sectors whose credit needs are upto Rs. 10,00,000.

As of now, MUDRA loans are not provided for agricultural purposes like crop cultivation, land improvement such as canal, irrigation and wells. In case you need funds for these activities, you can apply for an Agriculture Loan with a bank. However, MUDRA loans are provided for activities allied to agriculture, for eg: pisciculture, bee keeping, poultry, livestock-rearing, grading, sorting, aggregation agro industries, diary, fishery, agri-clinics and agribusiness centres, food & agro-processing, etc, which promotes livelihood or helps in income generation.