Which type of loan is supported by MUDRA?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Non-farm loan.
MUDRA (Micro Units Development and Refinance Agency) supports non-farm loans provided to micro and small enterprises under the Pradhan Mantri MUDRA Yojana (PMMY). These loans are aimed at promoting entrepreneurship and self-employment among small business owners who are outside the traditional banking system. MUDRA loans are categorized into three types based on the stage of business development: Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). The loans are extended for non-farm income-generating activities such as manufacturing, trading, and services, helping to strengthen India’s micro-enterprise ecosystem.