Already all Nationalised Banks are lending such loans to small business, self-employed at lesser rate of interest under PRIORITY SECTOR.This is an extension of Scheme for Self-employed Unemployed Youth (SEEUY), Scheme for Urban Micro Enterprises (SUME) Prime Minister Rozgar Yojana (PMRY) for which the Govt gave 25% subsidy. The new scheme: for higher sum (thro nationalised Banks, NBFC) It seems after lending, Banks may get funds (claiming from MUDRA) i.e refinance so that banks would not face financial crunch.