Q.List out the objectives of MUDRA Bank.

MUDRA Bank (2015) aims to refinance and lend to micro and small enterprises, fund the unfunded, promote entrepreneurship and self-employment, and widen financial inclusion through Shishu, Kishor and Tarun loans.

In the Tamil Nadu HSC Class-11 Economics syllabus, the Micro Units Development and Refinance Agency (MUDRA) is studied as an institution for rural and small-enterprise finance. Its objectives are:

1. Provide and refinance credit to micro/small units. MUDRA refinances banks, NBFCs and micro-finance institutions that lend to small non-corporate, non-farm enterprises.
2. "Fund the unfunded." Its central aim is to bring small entrepreneurs — who cannot easily get bank loans — into the formal credit system.
3. Promote entrepreneurship and self-employment. By financing small manufacturing, trading and service units, it helps generate employment and incomes.
4. Financial inclusion. It extends institutional credit to weaker sections and small businesses through three loan categories based on the stage of the enterprise: …