Question

Which of the following economic schemes is an initiative designed for the non-corporate, non-agricultural sector, micro and small enterprises with credit requirements of less than Rs.10 lakhs?
1. National Social Assistance Scheme
2. Pradhan Mantri Mudra Yojana
3. Sukanya Samriddhi Yojana
4. National Health Insurance Scheme

Answer 1

Correct Answer - Option 2 : Pradhan Mantri Mudra Yojana

The Correct Answer is "Pradhan Mantri Mudra Yojana".

• Micro Units Development and Refinance Agency Bank (or MUDRA Bank) is a public sector financial institution in India.
• It provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs.
• It was launched by Prime Minister Narendra Modi on 8 April 2015.

• The formation of the agency was initially announced in the 2015 Union budget of India in February 2015.
• It was formally launched on 8 April.
• The MUDRA banks were set up under the Pradhan Mantri MUDRA Yojana scheme.
• It will provide its services to small entrepreneurs outside the service area of regular banks, by using last mile agents.
• About 5.77 crores (57.6 million) small businesses have been identified as target clients using the NSSO survey of 2013.
• Only 4% of these businesses get finance from regular banks.
• The bank will also ensure that its clients do not fall into indebtedness and will lend responsibly.
• The bank will classify its clients into three categories and the maximum allowed loan sums will be based on the category :
  • Shishu: Allowed loans up to ₹50,000 (US$700)
  • Kishor: Allowed loans up to ₹5 lakh (US$7,000)
  • Tarun: Allowed loans up to ₹10 lakh (US$14,000)
• The government has decided to provide an additional fund of ₹1 trillion (US$14 billion) to the market and will be allocated as :
  • 40% to Shishu
  • 35% to Kishor
  • 25% to Tarun
• Those eligible to borrow from MUDRA bank are :

• Small manufacturing unit
• Shopkeepers
• Fruit and vegetable vendors
• Artisans