Micro Units Development & Refinance Agency Ltd (MUDRA)

What is MUDRA?

• It is a scheme to extend collateral free loans by Banks, NBFCs and MFIs to Small/Micro business enterprises and individuals in the non-agricultural sector to enable their business activities and to generate self-employment.
• MUDRA provides refinance support to Last Mile Financiers (LMFs) like NBFCs engaged in financing micro business etc.
• Presently, the authorized capital of MUDRA is 1000 crores and paid up capital is 750 crores, fully subscribed by SIDBI.
• Bank branches would facilitate loans under Mudra scheme as per customer requirements.
• Mudra debit cards are issued to borrowers.

Categories:

• Shishu: covering loans upto Rs. 50,000/-
• Kishor: 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

Prelims Question:

Consider the following statements about Micro Units Development & Refinance Agency Ltd (MUDRA):
1.Both micro industries and individuals are eligible for loans from the agency.
2.The current authorized capital of MUDRA is Rs.1000 crore.
Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2

Answer to Prelims question