About Mudra Loans in SIDBI, Ground floor, Videocon tower, Jhandewalan Extension, E-1, Rani Jhansi Road, New Delhi

Micro Units Development and Refinance Agency Limited (MUDRA) has been set up for
‘funding the unfunded’ micro enterprises in the country. MUDRA will refinance all banks,
Micro-finance Institutions (MFIs) and other lending institutions, which are in the business of
lending to micro / small business entities, engaged in manufacturing, trading and services
activities. Thus, MUDRA will strengthen the Last Mile Financial Institutions by extending
refinance and other development support to expand their outreach. This will in turn help
micro businesses across the length and breadth of the country. MUDRA’s mandate also includes
developing the micro enterprise sector into a viable economic sector, for which various
developmental interventions including financial/ business literacy programmes are planned.
Pradhan Mantri Mudra Yojana (PMMY), a scheme to finance income generating small
business enterprises was launched on 08 April 2015 by the Hon’ble Prime Minister, whereby
all banks are required to finance micro entrepreneurs upto ` 10 lakh, irrespective of whether
they avail of refinance support from MUDRA or not. MUDRA loans are available in three
categories. For small business, loans upto ` 50000/- is available under the ‘Shishu’ category
and beyond ` 50,000 and up to Rs.5 lakh under the ‘Kishor’ category. It also offers loans
beyond ` 5 lakh and up to ` 10 lakh under the “Tarun” category.
PMMY loans will be extended by all Banks such as PSU banks, Regional Rural Banks (RRBs),
Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions and
Non-Banking Finance Companies. During 2015-16, a target of ` 1,22,188 crore was set,
which has been surpassed by the end of the year. For the F.Y. 2016-17, a target of ` 180000
crore has been set. The achievements under PMMY is captured on a weekly basis through a
dedicated PMMY Portal. Apart from refinance, MUDRA will also provide credit guarantee
support to the eligible loans given under the Pradhan Mantri Mudra Yojana.

Get Directions