Mudra Bank – Details, Objectives & Benefits

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In his last Budget speech (2015-2016), Finance Minister Arun Jaitley proposed to set up a ‘Micro Units Development Refinance Agency (MUDRA Bank) with a corpus of Rs 20,000 crore.

He said that there are around 5.77 crore Small Business units, mostly individual proprietorship, which run small manufacturing, trading or service businesses. These sole-proprietors or entrepreneurs of Small & Medium Enterprises, find it difficult to get credit / finance from the financial institutions.

Today  (8th April, 2015), Prime Minister Narendra Modi launched MUDRA Bank under Pradhan Mantri Jan Dhan Yojana Scheme.Mudra Bank

What is Mudra Bank?

Mudra Bank is for ‘funding’ the ‘unfunded’. This will provide credit of up to Rs 10 lakh to small entrepreneurs and act as a regulator for ‘Micro-Finance Institutions’ (MFIs). MUDRA Bank will also refinance Micro-Finance Institutions through Pradhan Mantri Mudra Yojana. (Mudra, in  Hindi, means currency)

The main objectives of Mudra Bank are, to encourage entrepreneurs and small business units to expand their capabilities and operations, to reduce over indebtedness and to provide formal system of credit (finance). Agriculture & Self-employment will be the focus areas of Mudra Bank.

Responsibilities of Mudra Bank

  • Laying down policy guidelines for micro/small enterprise financing business.
  • Registration and Regulation of MFI (Micro-Finance Institutions) entities.
  • Accreditation/rating of MFI entities.
  • To assist the lower income groups to develop and grow their small businesses.
  • To help in increasing the access of finance to the un-banked and to also bring down the cost of finance.
  • To provide access to Institutional Finance for Small Business Units (SBU).
  • Laying down responsible financing practices to prevent over indebtedness, ensuring client protection principles and methods of recovery.
  • Development of standardized covenants governing last mile lending to micro/small enterprises.
  • Formulating and running a credit guarantee scheme for providing guarantees to the loans which are being extended to micro-enterprises.
  • MUDRA bank will also be responsible for regulating and refinancing all micro-finance institutions (MFIs) which are in the business of lending to micro or small business entities engaged in manufacturing, trading and services activities.
  • To give priority to SC/ST enterprises in lending.

Funding based on Stages of Growth of a Micro unit

It has been proposed to fund the units based on the stage of growth and funding needs of an entrepreneur or a micro unit.

  • Under ‘Shishu’ Scheme, loans up to Rs 50,000 will be sanctioned. This is the first stage when the business is just starting up.
  • Under ‘Kishor’ Scheme, loans above Rs 50,000 and up to Rs 5 Lakh will be provided.
  • Under ‘Tarun’ category, loan of above Rs 5 Lakh and up to Rs 10 Lakh will be sanctioned.

Products and Offerings of Mudra Bank

Businesses/entrepreneurs/units covered would include proprietorship/partnership firms running as small manufacturing units, shopkeepers, fruits/vegetable sellers, hair cutting saloon, beauty parlors, transporters, truck operators, hawkers, co-operatives or body of individuals, food service units, repair shops, machine operators, small industries, artisans, food processors, self help groups, professionals and service providers etc. in rural and urban areas with financing requirements up to Rs.10 lakh.

The products initially being launched are as under:

Sector/activity specific schemes, such as schemes for business activities in Land Transport, Community, Social & Personal Services, Food Product and Textile Product sectors. Schemes would similarly be added for other sectors / activities.

  • Micro Credit Scheme (MCS)
  • Refinance Scheme for Regional Rural Banks (RRBs) / Scheduled Co-operative Banks
  • Mahila Uddyami Scheme
  • Business Loan for Traders & Shopkeepers
  • Missing Middle Credit Scheme
  • Equipment Finance for Micro Units

The average debt of Small business enterprises in India is around Rs 17,000. If lending is increased to Rs 5 or 10 Lakh, the sector would benefit immensely and may generate lot of self-employment opportunities.

Small business units generally face lot of challenges to get loans from Banks. So, they end up taking high-cost loans from financiers or money lenders.

I believe that creating a bank like Mudra Bank will hugely benefit small manufacturing units and self-employed individuals in rural and urban areas with financing requirements up to Rs 10 lakh. Bringing in the informal sector into the formal system has many advantages for both business and economy.

( You may read my article on ” How to apply for a Business Loan under Pradhan Mantri MUDRA Yojana – PMMY? “)

Latest Update : The contact details of Nodal Officers of Mudra Ltd have been recently published. Below are the details. For any queries related to loans, you can email them to .

Sl. No.OfficeNameDesignationEmailPhone
Ahmedabad Region
1Ahmedabad ROShri Dharmendra JainManagerdharmendrajain@sidbi.in079-27549924
2Ahmedabad BOShri Sandeep Vasant
Assistant Managersandeepmaraskule@sidbi.i
079- 27549932
3Baroda BOShri Amrendra KumarManageramrendra@sidbi.in0265-2338679/80
4Gandhidham BOShri Rama
Satyanarayana Kotha
5Jamnager XBOShri Nikhil RaghavanManagernikhilr@sidbi.in0288-2753954
6Morbi BOShri Shashank KumarAssistant Managershashankk@sidbi.in02822-221553
7Rajkot BOShri Shashi Anand
8Surat BOSmt. Vidya KirtiManagervkirti@sidbi.in0261-2258493
9Vatva XBOShri Shashi KamalAssistant Managershashik@sidbi.in079-25833434
Bengaluru Region
10Bengaluru ROSmt. Neelam SridharManagerneelams@sidbi.in080 67171501
11Bengaluru BOShri Sanjay PrasadManagersprasad@sidbi.in080-67171516
12Hosur BOShri P. SurannaManagerpsurana@sidbi.in04344-244560
13Hubli BOShri Alok GoyalManageralokgoyal@sidbi.in0836-2354000
14Mysuru XBOShri S. KarthikAssistant Managerskarthik@sidbi.in0821-2424500
15Peenya XBOShri Vishwanath
Chandigarh Region
16Chandigarh ROShri Sarvesh SrivastavaManagersarvesh@sidbi.in0172-5041664
17Chandigarh BOShri RajanManagerrajanca@sidbi.in0172-5026245
18Jalandhar BOShri Ritesh KumarManagerriteshk@sidbi.in0181-5017785
19Jammu BOShri Anuj JainAGManujjain@sidbi.in0191-2474305
20Ludhiana BOSmt. Charu VermaManagercharuk@sidbi.in0161-5099368
21Shimla BOShri Ram Sewak
Chennai Region
22Chennai ROSmt. Kousalya MuraliPS Grade- Bkousalya@sidbi.in044-66636006
23Chennai BOShri S. SrinivasanAGMssvasan@sidbi.in044- 66636026
24Ambattur XBOShri S ChandrasekaranAssistant Managersekaran@sidbi.in044-26241055
25Puducherry BOShri V RameshManagervramesh@sidbi.in0413-2339040
Coimbatore Region
26Coimbatore ROShri L.Venkata
27Coimbatore BOSmt.I.SuganthiAGMsuganthi@sidbi.in0422-2206012
28Kochi BOShri M.Roop KumarAGMroopkumar@sidbi.in0484 – 2401792
29Erode BOShri T.KulasekaranAGMkuls@sidbi.in0424 – 2221522
30Madurai XBOShri Pilla SrinivasAssistant Managersrinivasp@sidbi.in0452-2526130
31Tirupur BOShri S.SeshadriAGMsheshadri@sidbi.in0421 – 2215696
32Trichy XBOShri Nagarajan Senthil
Faridabad Region
33Faridabad ROShri Pradeep AwasthiManagerpawasthi@sidbi.in0129-2410672
34Faridabad BOShri Ravi KandulnaManagerravik@sidbi.in0129 – 2414419
35Gurgaon BOShri Taiyabi
Guwahati Region
36Guwahati ROShri K. Ravindra PaiAGMkrpai@sidbi.in0361-2457102
37Guwahati BOSmt. Mandira SinhaAGMmandira@sidbi.in0361-2465240
38Agartala BOShri N.C. DebnathManagerncdebnath@sidbi.in0381-2311632
39Aizwal BOShri G.R. TeronAssistant Managergrteron@sidbi.in0389-2323424
40Dimapur BOShri S.P. GangteManagerspgangte@sidbi.in0386-2225641
41Gangtok BOShri Sanjay K. GuptaManagersanjayk@sidbi.in03592-281443
42Imphal BOSmt. Anamika RManageranamika@sidbi.in0385-2446614
43Itanagar BOShri K. BrahmaAssistant Managerkbrahma@sidbi.in0360-2214749
44Shillong BOShri G. HangzoManagerhangzo@sidbi.in0364-2502267
Hyderabad Region
45Hyderabad ROMs. Swaroopa
46Hyderabad BOShri Ponnuru SreedharManagersreedhar@sidbi.in040-23235198
47Balanagar XBOShri Lallan BabuManagerlallan@sidbi.in040-23770295
48Rajamundry XBOShri Pyda Rama KrishnaManagerramap@sidbi.in0883-2422833
49Vijayawada XBOShri Eadalada
Smt. Oruganti
Indore Region
51Indore ROShri S T GodeManagerstgode@sidbi.in0731-2541192
52Indore BOShri Hansraj LariyaAssistant Managerhansrajl@sidbi.in0731-2435337
53Bhopal BOSmt. Geeta S
54Bilaspur XBOShri D Prasad RaoManagerdprasad@sidbi.in07752-220520
55Nagpur BOShri Tahir KhanManagertahirkhan@sidbi.in0712-2553201
56Raipur BOSmt. Madhuri KumariManagermadhurik@sidbi.in0771-2883733
Jaipur Region
57Jaipur ROShri George Roshan
58Jaipur BOShri Vikas BalaniManagervikasbalani@sidbi.in0141-5119430
59Alwar XBOShri Shailendra SharmaAssistant Managersshailendra @sidbi.in0144-5122972
60Jodhpur BOShri Shailesh Kumar
61Kishangarh BOShri Abhay JainManagerabhayjain@sidbi.in01463-510004
62Udaipur XBOShri Amar Singh MeenaAssistant Manageramarm@sidbi.in0294-5102068
Kolkata Region
63Kolkata ROShri Diptosh MandalManagerdiptosh@sidbi.in033-66227516
64Kolkata BOShri Kishore
Managerrckishore@sidbi.in033 – 66227521
Shri Subash Kumar
Managerrajkumar@sidbi.in0674 – 2394854
66Jamshedpur BOShri Mukul Praween
Managermukule@sidbi.in0657 – 2441191
67Patna BOShri Amit RaiAGMamitrai@sidbi.in0612 – 2500915
68Ranchi BOShri Amulya MishraAssistant Manageramulyam@sidbi.in0651-2482037
69Rourkela BOShri Nirmal Chandra
Lucknow Region
70Lucknow ROShri Vinay KumarManagervinay@sidbi.in0522-2288546-50
71Lucknow BOMs. Jyoti ChaurasiaAssistant Managerjyotic@sidbi.in0522-2286576
72Agra BOShri Imran HasanAssistant Managerimranh@sidbi.in0562-2524879
73Kanpur BOShri Gyanesh KumarManagergyanesh@sidbi.in0512-2303518
74Varanasi BOShri Vinish K SinghAssistant Managervinishks@sidbi.in0542-2223465
Mumbai Region
75Mumbai ROShri Ladu Kishore
76BKCBOShri S K ShardaAGMsksharda@sidbi.in022-67531277
77Andheri BOShri Vinit ChandanAGMvchandan@sidbi.in022-28353063
Metropolitan BO
Shri Akash PawarAGMakash@sidbi.in022-22812330
79Panaji BOShri S R G Chandra
80Thane BOShri K T P RaoAGMktprao@sidbi.in022-25826614
New Delhi Region
81New Delhi ROShri Kiran Kumar BDGMbkirankr@sidbi.in011-23551531
82New Delhi BOSmt. Mamta KumariManagermamta@sidbi.in011-23682470
Shri Sumiran L RajManagersumiran@sidbi.in01276-267707
84Dehradun BOShri Varun SinghwalAssistant Managervaruns@sidbi.in0135-2743119
85Ghaziabad XBOShri Shakti MalikManagershaktimalik@sidbi.in0120-2820801
86Greater Noida
Shri Pravin KumarManagerpravinkr@sidbi.in0120-2396020
87Kundli XBOShri Avadhesh KumarAssistant Manageravadheshk@sidbi.in0130-2219924
88Noida BOSmt. Padampreet KaurManagerpadamk@sidbi.in0120-2427794
89Okhla BOSmt. Anisha PalManageranisha@sidbi.in011-26382034
90Rudrapur BOShri Sharda PrasadManagersharda@sidbi.in05944-246806
Pune Region
91Pune ROSmt Chand KureelDGMckureel@sidbi.in020 – 25656601
92Pune BOShri Shailesh DungariaAGMshaileshd@sidbi.in020-25675269
Shri Jitendra KumarAssistant Managerjitendrak@sidbi.in0241-2426066
94Aurangabad BOShri Ram MeenaAGMsrmeena@sidbi.in0240-2472494
95Chinchwad XBOShri Rajesh Dinkar
Assistant Managerrajesht@sidbi.in020-27420222
96Kolhapur BOShri Yashwant Narayan
97Nasik BOShri Thota Vidhya SagarAGMvsagar@sidbi.in0253-6619713

Source –

(I will  try to update this article with more details like ‘rate of interest’ on loans, mode of operation, bank branches etc., ASAP)

What is your view on Mudra Bank? Share your comments.

(Reference : Press Information Bureau, GOI)

About The Author

  • Maktumsab H Mullanavar says:

    Sir I am in katanatak sir I small business in travel agency I apply mudra bank loan pelas help me

  • shankar says:

    sir i want loan of 10lakh plz…

  • Rana Das says:

    Dear Sir
    what do I have to do for mudra loan
    I don’t know it isn’t true
    So I request if you have any Option
    So please Contact me
    Mo– +91 88618 94806
    I’m waiting for your Call & And know About me dear Sir

  • 9028502677 says:

    sir My Name is amol and i am living from Nasik and i have bussenes Loan sir please help ME sir

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