Consider the following statements about MUDRA Scheme:
(A) It is a special fund to finance small and medium enterprises
(B) It does not finance Companies
(C) Co-operative societies are eligible to avail MUDRA re-finance
(D) The maximum loan amount is Rs. 1 crore
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (B) and (C) only
The Pradhan Mantri MUDRA Yojana, launched on 8 April 2015, gives loans to non-corporate, non-farm small and micro enterprises. MUDRA (Micro Units Development and Refinance Agency) does not lend to them directly; it refinances the banks, co-operative lenders, NBFCs and microfinance institutions that give these loans.
(A) It is a special fund to finance small and medium enterprises Incorrect. MUDRA is meant for micro units, such as small shops, vendors, artisans and small manufacturers, not for medium enterprises.
(B) It does not finance Companies Correct. Its loans go to proprietorships, partnerships and other non-corporate businesses; companies are outside the scheme.
(C) Co-operative societies are eligible to avail MUDRA re-finance Correct. Co-operative banks and societies that lend to micro units are among the lending institutions that MUDRA refinances, along with banks, NBFCs and microfinance institutions.
(D) The maximum loan amount is Rs. 1 crore Incorrect. The limit was Rs. 10 lakh (Shishu up to Rs. 50,000, Kishore up to Rs. 5 lakh, Tarun up to Rs. 10 lakh); in 2024 it was raised to Rs. 20 lakh with a new Tarun Plus category, still far below Rs. 1 crore.