MICRO UNITS DEVELOPMENT AND REFINANCE AGENCY LTD (MUDRA) BANK

MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units enterprises.

Established on 8 April, 2015 with a corpus of Rs.20,000 crores and a credit guarantee corpus of Rs 3,000 crores.

Key Points

• The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.
• MUDRA would be responsible for refinancing all Last Mile Financiers such as Non-Banking Finance Companies, Societies, Trusts, Section 8 Companies [formerly Section 25], Co-operative Societies, Small Banks, Scheduled Commercial Banks and Regional Rural Banks which are in the business of lending to micro/small business entities engaged in manufacturing, trading and services activities. MUDRA would also partner with State/Regional level financial intermediaries to provide finance to Last Mile Financier of small/micro business enterprises.
  

  ---

• Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products / schemes. The financial limit for these schemes are :-

1. Shishu : covering loans upto  50,000/-
2. Kishor :covering loans above  50,000/- and upto  5 lakh
3. Tarun :covering loans above  5 lakh to  10 lakh

• MUDRA’s delivery channel is conceived to be through the route of refinance primarily to Banks/NBFCs/MFIs.
• The borrowers which are eligible for assistance from MUDRA are as follows:

Non–Corporate Small Business Segment (NCSB) comprising of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.

• MUDRA will be extending refinance support to RRBs for enhancing their liquidity.