Micro Units Development and Refinance Agency Bank
Micro Units Development and Refinance Agency Bank (or MUDRA Bank)) is a public sector financial institution in India. It provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs. It was launched by Prime Minister Narendra Modi on 8 April 2015. More capital is expected to enhance the functioning of MUDRA. This Agency would be responsible for developing and refinancing all Micro-enterprises sector by supporting the finance Institutions which are in the business of lending to micro / small business entities engaged in  manufacturing, trading and service activities. MUDRA would partner with Banks, MFIs and other lending institutions at state level / regional level to provide micro finance support to the micro enterprise sector in the country. The bank will classify its clients into three categories and the maximum allowed loan sums will be based on the category: Government has decided to provide an additional fund of to the market and will be allocated as Those eligible to borrow from MUDRA bank are