What is Mudra Yojana

Learn about the government scheme Mudra Yojana, designed to support small businesses and entrepreneurs in India with easy access to credit and financial assistance.


Mudra Yojana, short for Micro Units Development and Refinance Agency Yojana, is a government scheme aimed at providing financial support to small businesses and entrepreneurs in India. The scheme was launched in 2015 by the Prime Minister of India, Narendra Modi, with the goal of promoting entrepreneurship and creating job opportunities.

Types of Loans

Under the Mudra Yojana, three types of loans are offered: Shishu (up to Rs. 50,000), Kishor (Rs. 50,001 to Rs. 5 lakh), and Tarun (Rs. 5 lakh to Rs. 10 lakh). These loans are provided by various financial institutions such as banks, non-banking financial companies (NBFCs), and microfinance institutions.


The Mudra Yojana offers several benefits to small businesses and entrepreneurs, including easy access to credit, low interest rates, flexible repayment terms, and no collateral requirement. This makes it easier for individuals to start or expand their businesses without facing financial barriers.

Case Studies

One success story of the Mudra Yojana is that of a small textile business in Mumbai. The owner, Rajesh, availed a loan under the scheme to purchase new weaving machines and expand his production capacity. With the help of the loan, Rajesh was able to increase his sales and hire more employees, thus growing his business.


Since its launch, the Mudra Yojana has facilitated the disbursal of over Rs. 15 lakh crore in loans to more than 20 crore beneficiaries across the country. This has had a significant impact on job creation and economic growth, especially in rural areas where access to credit was limited.

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