Cover Story

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Due to complexity involved in raising funds from various sources available in the market, micro, small and medium enterprises are unable to get the needed financial support on time at reasonable cost easily. In order to assist these unfunded entrepreneurs and small business concerns, the present Government led by Shri Narendra Modi, started MUDRA bank on 8thApril, 2015 with a corpus of 20,000 crore and a credit guarantee fund of 3,000 crore to support financial institutions and micro finance institutions. MUDRA bank was formed with a mandate to refinance and regulate micro finance institutions and give financial assistance to micro and small units that are typically excluded from the mainstream banking system. The scheme was launched as a refinancing institution to provide funding support to the lending institutions engaged in financing micro units in the country, through the Government of India’s flagship programme. MUDRA scheme is not only to bridge the funding gap to the micro enterprises but also aims to boost the confidence of the first generation entrepreneurs and also assist existing small businesses expand their business activities in more diversified ways. As on 31st March 2018, the MUDRA scheme has provided financial support to 4, 81,30,593 entrepreneurs with a total amount of 246437.40 crore in promotion of new and existing enterprises in the country.