The MUDRA loan was introduced to ensure the balance of employment created among small vendors, shopkeepers and other people who are running their own small businesses. These loans provide funding for working capital through MUDRA cards. A MUDRA card is a debit card that is issued against the MUDRA loan that you have availed. This will be issued for the working capital portion of the loan.
These MUDRA loan schemes can be useful for small business vendors or shopkeepers, who will be able to avail funds from Rs. 50,000 to Rs. 10 lakhs for their entrepreneurial activities. People in the textile industry who are in the handloom sector, fashion designing or any other traditional or modern textile work can get funds to improve their business. The food production sector and the agricultural sector can also take the help of this scheme. No collateral is required to avail the loans and no processing charges are levied.