MUDRA stands for Micro Units Development and Refinance Agency Ltd. MUDRA is a Non-Banking Financial Company that supports the development of micro enterprise sector in India. Refinance support is provided to banks and MFIs for lending to micro units. Loan amounts of up to Rs.10 lakhs are provided for the same. 

This small business loan product is offered under the Pradhan Mantri Mudra Yojana (PMMY) scheme. The purpose of the loan is to promote income generation and help with the creation of employment for the citizens of the nation. Mudra loans can be availed by traders, vendors shopkeepers and other service sector businesses.

The loan amount can be used for skill development, sectoral development, entrepreneurship, purchase of equipment, working capital needs, financial literacy, buying transport vehicles and institutional development.

Transport vehicles, community, social and personal service activities, food products sector, textile products sector, traders and shopkeepers and activities related to agriculture are all the activities that can be covered by a Mudra loan.

Loan amounts:

Individuals can get up to Rs. 10 Lakhs under this scheme. Based on the loan amounts offered, there are three variants, namely Shishu, Kishor and Tarun.


Mudra Card is a debit card that is issued against the loan account for the working capital portion of the loan. This helps the individual withdraw credit and keeps the interest burden at minimum.

Micro Credit Scheme for loan amounts of up to Rs.1 lakh is offered through Micro Finance Institutions (MFIs) and can be utilized for various micro enterprise activities. Women entrepreneurs are also encouraged to borrow as MFIs extend additional facilities that include reduced interest on their loans.

To apply for a business loan, click here.