Mudra loan is a Government of India undertaking, which was started to provide financial support to small businesses in the country. Under Mudra Loan Yojana, three different types of loans are provided:
- SHISHU Loan - This loan is designed for startups and provides financial support of up to Rs. 50,000.
- KISHOR Loan - This loan is designed for businesses who have already started up and require financial help for establishing themselves. Financial support ranging between Rs. 50,000 and Rs. 500,000 is provided to applicants under this category
- TARUN Loan - This loan is offered to businesses which are already established but require financial help for expansion. Financial support ranging between Rs. 500,000 and Rs. 10,00,000 is provided to applicants under this category