The Modi government has set up the MUDRA (Micro Units Development & Refinance Agency Ltd.) which aims to provide financial assistance to the small and micro enterprises for their activities in the non – farm and non – corporate sector. The Pradhan Mantri MUDRA Yojana (PMMY), however, provides funding to the organizations whose credit# needs fall below Rs.10 Lakh.
Under this scheme, there are three stages which mark the funding needs and growth of the beneficiary organization in the question. These are:
Shishu: This covers loans less than Rs.50,000
Kishore: This covers loans more than Rs.50,000 and less than Rs.5,00,000
Tarun: This covers loans more than Rs.5,00,000 and less than Rs.10,00,000
Under this scheme, eligible business segments include food – service units, fruits/vegetable vendors, service sector units, truck operators, machine operators, food processors, repair shops, small industries, and more.