Mudra Loan, initiated by the Government of India, aims to provide financial support to micro-enterprises across various sectors, including manufacturing, services, and trading.

These loans are categorized into three schemes: Shishu (up to Rs. 50,000), Kishore (Rs. 50,001 to Rs. 5 lakh), and Tarun (Rs. 5,00,001 to Rs. 10 lakh), catering to different stages of business growth.

The loans are extended through various financial institutions like banks, NBFCs, and MFIs, promoting entrepreneurship and job creation in rural and urban areas.

Interest rates for Mudra loans are competitive, often linked to the base rate of lending institutions. Applicants need to provide essential documents like identity proof, address proof, and business plan to qualify.

These loans do not require collateral security, making them accessible to small businesses and startups. The Mudra Yojana also emphasizes financial inclusion and provides support for skill development and capacity building among loan recipients, fostering economic empowerment at the grassroots level.