Micro Units Development Refinance Agency (MUDRA) Bank has partnered with 19 state and regional level coordinators to reach those small entrepreneurs who are often cut off from the banking system because of a limited branch presence.
This initiative is expected to help finance ‘Last Mile Financiers’ of small and micro businesses. These businesses would in turn generate almost 10 times jobs compared to what was being generated by the big companies currently.
MUDRA Bank’s effort is likely to transform small enterprises into a Rs. 11 lakh crore industry, which would give a significant push to country’s economy.
The Central government had set up MUDRA Bank to boost the growth of small scale businesses as small entrepreneurs face difficulty to access banking system for various reasons. This venture by MUDRA will help finance small and micro businesses at the grassroots level.