Question

Which of the following acronyms represents the scheme by the union Government to facilitate the collateral free loans by Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) to Small/Micro business enterprises and individuals in the non-agricultural sector ?
1. UDAAN
2. JAM
3. MUDRA
4. UDAY

Answer 1

Correct Answer - Option 3 : MUDRA

The correct answer is MUDRA.

• About the Pradhan Mantri MUDRA Yojana (PMMY) scheme:
  • The PMMY scheme was launched in April 2015. The scheme’s objective is to refinance collateral-free loans given by the lenders to small borrowers.
  • The scheme, which has a corpus of Rs 20,000 crore, can lend between Rs 50,000 and Rs 10 lakh to small entrepreneurs.
  • Banks and MFIs can draw refinance under the MUDRA Scheme after becoming member-lending institutions of MUDRA.
  • Mudra Loans are available for non-agricultural activities up to Rs. 10 lakh and activities allied to agriculture such as Dairy, Poultry, Bee Keeping etc, are also covered.
  • Mudra’s unique features include a Mudra Card which permits access to Working Capital through ATMs and Card Machines.
  • There are three types of loans under PMMY:
    • Shishu (up to Rs.50,000).
    • Kishore (from Rs.50,001 to Rs.5 lakh).
    • Tarun (from Rs.500,001 to Rs.10,00,000).