Which of the following statements are correct about Pradhan Mantri MUDRA Yojana?
(A) MUDRA stands for Macro Units of Developed and Refinance Agency Limited.
(B) It aims at encouraging first generation entrepreneurs
(C) Finance Micro Entrepreneurs up to ₹10 lakh
(D) MUDRA stands for Micro Units Development and Refinance Agency Limited
(E) Three innovative products namely Shishu, Kishor and Tarun were launched under this Yojana
Choose the most appropriate answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (B), (C), (D), (E) only
The Pradhan Mantri MUDRA Yojana, launched in April 2015, gives collateral-free loans through banks and other lenders to non-corporate, non-farm micro and small enterprises; MUDRA itself refinances these lenders.
(A) MUDRA stands for Macro Units of Developed and Refinance Agency Limited. Incorrect. The scheme is for micro units, not macro units; the name is given correctly in (D).
(B) It aims at encouraging first generation entrepreneurs Correct. It is meant to “fund the unfunded”: small first-time entrepreneurs who could not get bank loans without security.
(C) Finance Micro Entrepreneurs up to ₹10 lakh Correct. Its three loan products, named in (E), finance micro entrepreneurs up to ₹10 lakh.
(D) MUDRA stands for Micro Units Development and Refinance Agency Limited Correct. This is the full name of MUDRA, set up as a subsidiary of SIDBI.
(E) Three innovative products namely Shishu, Kishor and Tarun were launched under this Yojana Correct. The three loan categories mark the stage of the business: Shishu up to ₹50,000, Kishor ₹50,000 to ₹5 lakh, and Tarun ₹5 lakh to ₹10 lakh.