evidence: Introduced in 2015, the Mudra in Mudra loan stands for Micro Units Development and Refinance Agency. The slogan of the Mudra loan is "Funding the unfunded", aiming to empower small-scale businesses in India. [...] The Mudra loan is designed to benefit and encourage the growth of small businesses: 1. Collateral-free loan: The Mudra loan is a type of unsecured loan. This means you don’t have to put up any security as collateral to the lending institution. A collateral-free loan reduces mental stress and helps you focus on business growth without worry.