Micro Units Development and Refinance Agency Bank, also referred to as MUDRA Bank is an initiative by Prime Minister Narendra Modi that was launched on April 8, 2015. Conceptualized during the annual budget of 2015-2016, this scheme came into practice from April. Under this scheme, the development of small businesses and entrepreneurs were focused upon. Several exceptions were made in order to satisfy client requirements by reaching areas where general banks were unable to reach. Almost half the population of the nation lives in remote areas, where banking services such as savings accounts, credit cards, loans, and other such benefits are unheard of. The main motive of the MUDRA Bank was to provide service to people in these unreachable areas.
As mentioned earlier, the main motive behind the inception of MUDRA Bank is to offer banking services to needy people in rural areas. Here are some benefits and objectives of the MUDRA Bank:
There are three schemes, according to the requirement of the borrower, where the loan will be provided. It is further divided into three segments - the starters, mid-stage finance and the level growth seekers, based on the borrower. Here is a brief information about the three loans offered by the MUDRA Bank, under the Pradhan Mantri Mudra Yojna (PMMY):
There are a number of advantages of availing loans from the MUDRA Bank. These schemes meant for small business setups can definitely bring about a change to the Indian economy.