Micro-Units Development and Refinance Agency (MUDRA) was set up in April 2015 to help and support small and micro business units under the Pradhan Mantri Mudra Yojana (PMMY). The Mudra scheme was launched with a budget of Rs. 20,000 crores. Also known as Mudra Loan Yojana or Mudra Bank Scheme, the credit products offered by MUDRA are more commonly known as Mudra loans.
These Mudra loans are divided into three types based on the needs of businesses in the Micro, Small and Medium Enterprises (MSME) segment. Each Mudra loan has a specified loan amount, application procedure and interest rates. The Mudra loan eligibility criteria and application procedure are also slightly different for different banks. You must get the application form from the bank of your choice and inquire about eligibility criteria to make sure that you follow the procedure properly and have better chances of getting a loan approval.