As of October 2024, which of the following is not recognized as a category under the Pradhan Mantri Mudra Yojana (PMMY)?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 (Yuva).
Under the Pradhan Mantri Mudra Yojana (PMMY), loans are categorized into three segments; however, 'Yuva' is not one of them.
Categories of the Pradhan Mantri Mudra Yojana (PMMY):-
- Under the Mudra Scheme, three types of loans are provided based on the stage of the beneficiary's business development and their financial requirements:
- Shishu: Under this category, loans of up to ₹50,000 are provided. This is typically intended for individuals who are just starting their small businesses.
- Kishore: Under this category, loans ranging from over ₹50,000 up to ₹5 lakh are provided. This is intended for businesses that have already commenced operations and wish to expand.
- Tarun: Under this category, loans ranging from over ₹5 lakh up to ₹10 lakh are provided. (Note: In the 2024 Budget, a proposal was made to increase this limit to ₹20 lakh under a new category called 'Tarun Plus').
Key Facts about the Scheme:-
- Launch: The scheme was launched on April 8, 2015.
- Objective: To provide financial assistance for income-generating activities to non-corporate, non-farm small/micro enterprises.
- Collateral-free Loans: No form of 'collateral' (guarantee) is required to obtain a Mudra loan.
- Mudra Card: Beneficiaries are issued a debit card known as the 'Mudra Card,' which can be utilized to meet the working capital requirements of the business.
Important Questions for Upcoming Examinations:-
Question: What is the full form of PMMY?
Answer: Pradhan Mantri Mudra (Micro Units Development & Refinance Agency) Yojana.
Question: What is the maximum amount that can be sanctioned as a Mudra loan?
Answer: ₹10 lakh (now up to ₹20 lakh in certain categories).
Question: Under which Ministry does the Mudra Scheme fall?
Answer: Ministry of Finance.