Mudra is a novel institution set up by Government of India to provide financial assistance to non-corporate small business sector. It has been identified by the Government, that lack of financial assistance is the main barrier for the growth of small business in the country. To mitigate this barrier, this scheme was launched by Prime Minister Sri Narendra Modi on April 8, 2015.
Purpose of Mudra Loan
Mudra loan is given for various income and employment generating activities with a fund requirement up-to Rs. 10.00 lakhs. This loan is provided either as term loan or working capital loan by public/private sector banks and state and urban co-operative banks.
- For setting up beauty parlours, bakery, tailoring unit, provision stores, automobile service centre, computer assembly, manufacturing paper napkins and paper plates etc.
- For purchase of goods transport vehicle, auto rickshaw, taxi etc.
- For setting food stalls, catering units, pappad, jelly and jam