Micro Units Development & Refinance Agency Ltd (MUDRA)

Micro Units Development & Refinance Agency Ltd (MUDRA) has been set up on April 08, 2015 as a wholly owned subsidiary of SIDBI for “funding the unfunded” micro enterprises in the country. MUDRA has been supporting banks, Micro-finance Institutions (MFIs), NBFCs and other lending institutions through refinancing for onward lending to micro/small business entities engaged in manufacturing, trading, services, tractor financing, activities allied to agriculture, and two-wheeler loans (must not pertain to vehicles meant for personal use or for any other institutional purpose).

MUDRA also extends funding support to NBFCs and MFIs by way of securitisation of their loan assets, which helps them access debt funds from capital market for their operations. MUDRA services also include social empowerment initiatives through financial literacy, inclusion and other social support services, in addition to the financial assistance by way of credit plus policies.

MUDRA, currently with an authorised capital of INR 5000 crores and a paid up capital of INR 1675.93 crores, works closely with Banks, MFIs and other lending institutions at state/ regional level to provide micro finance support to the growing micro enterprise sector in the country. It is also the primary vehicle to manage data and provide refinance support under the Pradhan Mantri Mudra Yojana (PMMY) by managing the web portal, facilitate offering guarantees for loans granted under PMMY and take up other activities under the PMMY, from time to time.

MUDRA Impact:

  • MUDRA’s refinance support has facilitated cheaper funds to lending institutions for expanding their lending upto INR 10 lakh. This has further helped reducing cost to ultimate borrower.
  • Close monitoring of lending at ground level through PMMY has resulted in cumulative lending of INR 7.32 lakh crore to 15.33 crore borrowers (as on 31/12/2018). Of these, 74% borrowers were women, 28 % were new loan accounts and 55% SC/ST/OBC category.
  • MUDRA has disbursed refinance of INR 17105.65 crore (including securitisation transaction of INR 1334.90 Crore) till Decemebr 31, 2018 to various MFIs, NBFCs, Scheduled Commercial Banks including Regional Rural Banks and Small Finance Banks.

    For more details kindly visit