In the 'Pradhan Mantri Mudra Yojana', the loan cover for Shishu category is upto _______.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹50,000
Under the Pradhan Mantri Mudra Yojana (PMMY), loans are categorized into three types: Shishu, Kishore, and Tarun, based on the stage of business and loan requirement. The Shishu category specifically aims to support start-ups and very small enterprises. Under this category, the loan amount is up to ₹50,000, intended to provide initial capital for micro-businesses. The loan can be used for working capital, equipment, or business expansion. This scheme encourages entrepreneurship among individuals who may not have access to traditional banking loans, promoting financial inclusion and employment generation.
The other categories—Kishore (₹50,001–₹5 lakh) and Tarun (₹5 lakh–₹10 lakh)—cover higher funding needs.