PM Narendra Modi introduces the MUDRA Bank, (Micro Units Development Refinance Agency Bank) for the insolvent entrepreneurs of our country. This bank is going to provide Rs. 20,000 crores. There are ten special features of MUDRA bank.

The small entrepreneurs, a total of 5.77 crore of which exist in India, will benefit a lot from the MUDRA Bank: it will enable them to obtain a credit up to Rs. 10 lakh. It will control the Micro-Finance Institutions’ (MFIs).

The policies are sketched out for MUDRA and policy guidelines framing work is undertaken. The micro-enterprises need to be registered and accredited, as well as rated, to obtain a financial benefit for business development. The MUDRA‘s aim is to support the young, educated or skilled workers and especially women entrepreneurs.

MUDRA will help shopkeepers, fruits and vegetable sellers, small manufacturing units, hair salons, artisans, beauty parlors, hawkers, truck operators in rural and urban areas.

The Modi government assures a credit guarantee corpus of Rs. 3,000 crore. The programs and products launched initially are known as Shishu’, ‘Kishor’ and ‘Tarun“.


The program, known as Shishu provides loans up to Rs 50,000. The program, known as Kishor provides loans above Rs 50,000 and up to Rs 5 lakh. The category known as Tarun provides loans above Rs 5 lakh and up to Rs 10 lakh.

MUDRA is going to be a statutory enactment. Pradhan Mantri MUDRA Yojana will back this project. MUDRA is going to be a partner of state or regional level coordinators.

At the Vigyan Bhavan, Prime Minister Modi will introduce the Micro Units Development and Refinance Agency Ltd (MUDRA) bank in Delhi. The program will start on April 8, 2015.

In the Financial Year 2015-16, Arun Jaitley, our Union Finance Minister gave the proposal of building a new bank. The sum allocated for this bank would be Rs. 20,000 crore along with a credit guarantee corpus of Rs. 3,000 crore.

The MUDRA is also planned to provide services beyond credit: to offer various solutions to entrepreneurs throughout the country. It will help plan the correct finance practices, help the entrepreneur out of debt, give the guidelines for client protection principles, guide through the different methods of recovery, help to form a standardized set of covenants, come out with formulas for the credit guarantee scheme, guarantee for loans or portfolios. It will put forward the micro enterprises.

MUDRA will assist in the growth of small businesses, improving the country’s output. Above all, it will lessen the employment crisis. A country with more entrepreneurs means more wealth and prosperity.   This initiative by the Modi government is going to help 58 million small businesses, all over India. It will support 4% of institutional funding and provide employment to over 120 million people. People from unprivileged strata will have an opportunity to earn. The Prime Minister shared these ideas at the launch of Micro Units Development and Refinance Agency, popularly known as MUDRA.  

MUDRA is going to help many ordinary men and women of India. Generally, those running small businesses are kept outside the formal institutional finance structure, while they contribute to our economy considerably.

There were years, where Indian youths were filled with frustration and where to go attitude. Today, if we have widened look, we can see that the government has actually put forth so many measures to uplift the people. Now, it is the task of the people to look out for the opportunities available and grab it to move ahead. The task undertaken to promote Handicraft, promoting ethnic wear and many other activities are being carried out at the same time by the government. We are seeing action in all areas to improve businesses and finance area at micro level. We will definitely witness a very positive change in our nation in a few years as someone determined to bring a change is in action.