Which of the following schemes aims to enable Micro Finance Institutions, Non Banking Financial Institutions/Companies, Small Finance Banks, RBRs, Commercial Banks and Cooperative Banks to provide small loans to non-corporate non-farm micro/small enterprises and individuals engaged in income-generating businesses?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Pradhan Mantri Mudra Yojana.
Pradhan Mantri Mudra Yojana
- The aim of PMMY is to facilitate easy collateral-free micro credit to non-corporate, non-farm small and micro entrepreneurs for income generating activities.
- It was was launched in 2015, to provide refinance support to financial institutions like banks, micro-finance institutions (MFIs), and non-banking financial companies (NBFCs).
Loan Limits Under Various Categories:
- Shishu Category: Loan Limit: Up to Rs 50,000
- Kishore Category: Loan Limit: Rs 50,000 to Rs 5 lakh
- Tarun Category: Loan Limit: Rs 5 lakh to Rs 10 lakh.
- Tarun Plus Category: Loan Limit: Rs.10 lakh to Rs. 20 lakhs (Raised Union Budget 2024-25)