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SSC CGL 2024 PYQ — Question 27

SSC CGL - 24 Sep 2024 - Shift 2 • General Awareness • Q27

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Under which scheme are collateral free loans of up to ₹10 Lakh extended by the Member Lending Institutions (MLIs) in India?

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Correct answer: B

Explanation

The correct answer is option 2 i.e. Pradhan Mantri MUDRA Yojana

  • Collateral-free loans of up to ₹10 lakh are extended under the Pradhan Mantri Mudra Yojana (PMMY) in India. This scheme aims to provide financial support to micro and small businesses, especially in the non-corporate and non-farm sectors.
  • The loans are categorized into three types: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5,00,001 to ₹10 lakh).
  • PMMY encourages entrepreneurship and supports job creation by enabling easy access to credit for small businesses without the need for collateral security.