What is Mudra loan
It was launched by the government in 2015 for providing loans to the non-corporate, non-farm small/micro-enterprises.
MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is a financial institution set up by the Government
Provides funding through various last-mile financial institutions like Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs)
MUDRA has created three products i.e. 'Shishu', 'Kishore' and ‘Tarun’ as per the stage of growth and funding needs of the beneficiary micro unit.
Shishu: Covering loans up to Rs. 50,000.
Kishore: Covering loans above Rs. 50,000 and up to Rs. 5 lakh.
Tarun: Covering loans above Rs. 5 lakh and up to Rs. 10 lakh
New limit
The limit of Mudra loans will be enhanced to ₹20 lakh from ₹10 lakh for those who have repaid previous loans under the ‘Tarun’ category
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