Under the aegis of Pradhan Mantri MUDRA Yojana, three loan products have been launched and are known as 'Shishu', 'Kishor' and 'Tarun' to signify the stages of growth/ development and funding needs of the beneficiary of micro unit / entrepreneur and also provide a collateral free loan for sure. The three variants are
A. Shishu : covering loans upto 50,000/-
B. Kishor : covering loans above 50,000/- and upto 5 lakh
C. Tarun : covering loans above 5 lakh to 10 lakh
MUDRA Yojana operates as a refinancing institution through State / Regional level Intermediaries. MUDRA's delivery channel is conceived to be through the route of refinance primarily to NBFCs / MFIs, besides other intermediaries including Banks, Primary Lending Institutions etc.
A large number of 'Last Mile Financiers' in the form of companies, trusts, societies, associations and other networks are already providing informal finance to small businesses.