MUDRA Bank provides business loans to small businesses and entrepreneurs in India. It operates as a refinancing institution through intermediaries. There are three types of loans - Shishu for loans up to 50,000 INR, Kishor for loans between 50,000-5 lakhs INR, and Tarun for loans between 5-10 lakhs INR. Eligible businesses include small shops, food vendors, artisans, and other non-farm businesses. The goal is to empower small businesses and generate employment opportunities in India.