Which scheme provides refinance support to banks for lending to micro units having loan requirement upto ₹ 10 lakh and explain its type of funding support under the scheme?

MUDRA provides refinance support to Banks/Micro Finance Institutions (MFIs) for lending to Micro Units having loans requirement upto ₹ 10 lakh. Type of funding support from MUDRA: Micro Credit Scheme: It is offered mainly through MFIs, which deliver the credit upto ₹ 1 lakh, for various micro enterprise activities. Although, the mode of delivery may be through groups like SHGs/JLGs, the loans are given to the individuals for specific income generating micro enterprise activity. The MFIs who are availing financial support, need to enrol with MUDRA by complying to some of the requirements as notified by MUDA, from time to time. Refinance Scheme for Banks: Different banks like Commercial Banks, Regional Rural Banks and Scheduled Cooperative Banks are eligible to avail of refinance support from MUDRA for financing micro enterprise activities. The Refinance is available for term loan and working capital loans, upto an amount of ₹ 10 lakh per unit. The eligible banks, who have enrolled with MUDRA by complying to the requirements as notified, can avail refinance from MUDRA for the loan issued under Shishu (up to 50,000), Kishore (above 50,000 up to 5 lakh) and Tarun (above 5 lakh to 10 lakh) Categories. Women Enterprise Programme: To encourage women entrepreneurs, the financing banks/MFIs may consider extending additional facilities, including interest reduction on their loan. At present, MUDRA extends a reduction of 25 bps in its interest rates to MFIS/NBFCs, who are providing loans to women entrepreneurs. Securitization of Loan Portfolio: MUDRA also supports Banks/NBFCs/MFIs for raising funds for financing micro enterprises by participating in securitization of their loan assets against micro enterprise portfolio, by providing second loss default guarantee, for credit enhancement and participating in investment of Pass Through Certificate (PTCs) either as Senior or Junior investor.