Pradhan Mantri Mudra Yojana

JUN 25

Preliminary   > Economic Development   >   Indian Economy and Issues   >   Government Schemes


  • Government has decided to provide 2% interest subvention to borrowers under the 'Shishu' category of the flagship Pradhan Mantri MUDRA Yojana (PMMY).


  • It is a scheme to extend collateral free loans by Banks, NBFCs and MFIs to Small/Micro business enterprises and individuals in the non-agricultural sector to enable their business activities and to generate self-employment.
  • MUDRA provides refinance support to Last Mile Financiers (LMFs) like NBFCs engaged in financing micro business etc.
  • Presently, the authorized capital of MUDRA is 1000 crores and paid up capital is 750 crores, fully subscribed by SIDBI.


  • Shishu: covering loans upto Rs. 50,000/-
  • Kishor: covering loans above Rs. 50,000/-and up to Rs. 5 lakh
  • Tarun: covering loans above Rs. 5 lakh and up to Rs. 10 lakh


  • Bank branches would facilitate loans under Mudra scheme as per customer requirements.
  • Mudra debit cards are issued to borrowers.


Q. Consider the following statements about Micro Units Development & Refinance Agency Ltd (MUDRA):

  1. Both micro industries and individuals are eligible for loans from the agency.
  2. The current authorized capital of MUDRA is Rs.1000 crore

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer to Prelims question