Micro Small Medium Enterprises (MSMEs) are playing significant role for the economic foundation of India. MSME’s are having large share in industry units. The major barrier for the growth of the MSME’s in India is lack of financial assistance from the banks and financial institutions. This sector is the fastest growing sector of the country still majority of this segment does not get outside sources of finance. Thus, Government of India (GOI) launched the a new scheme said Micro Units Development and Refinance Agency Ltd. (MUDRA) on 8 th April 2015 which aims to provide financial assistance to MSME’s. The scheme focuses on ‘Fund the unfunded’. This paper aims to analyse the MUDRA Bank and its products and schemes, performance of Pradhan Mantri Mudra Yojana (PMMY) in respect of lending small businesses and entrepreneurs in India