MUDRA Full Form

The MUDRA full form  refers to Micro Units Development and Refinance Agency Bank. MUDRA is a prominent Non-Banking Financial Corporation that focuses on uplifting all the functional micro, small and medium enterprises. It is also recognized as the primary public sector financial institution operating in the country. MUDRA providing loans at considerably lower rates to all the non-banking financial institutions & micro-finance institutions. The organization came into existence on April 8th, 2015 and it is currently headquartered in the Mumbai.

MUDRA Full Form


Benefits of MUDRA

MUDRA freely reaches out to all those business entities that face a critical shortage of funds or are currently not connected to any stable means of receiving financial assistance. Such businesses usually consist of rural businesses with no aid from any bank or those businesses that are generally run by the scheduled castes & scheduled tribes.

The Government of India provides a full guarantee along with a reasonable backup against the MUDRA loan. This suggests that there will always be liquidity in the proposed funds and a consistent flow of such funds without any risks.

The borrower of a MUDRA loan is not required to visit any bank on a regular basis just to receive the loan. This hassle has been successfully eliminated by the MUDRA scheme as the debit card which is provided under it allows the borrower to make withdrawals at various successions.

MUDRA specified different types and sections of the businesses that it aims to finance. It was later decided that it will finance three categories of businesses, i.e. Shishu, Kishor, and Taruna with 45%, 35%, and 25% respectively. The specific loan limit that can be availed of from MUDRA


Shishu: The maximum loan limit under this category has been specified at Rs.50,000/-

Kishor: The overall loan limit that this section of the business can receive is Rs.5,00,000/-

Taruna: This section of the business type is entitled to a total loan amount of Rs.10,00,000/-


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