Pradhan Mantri Mudra Yojana
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).
WHAT IS MUDRA:
- 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):
- Both micro industries and individuals are eligible for loans from the agency.
- The current authorized capital of MUDRA is Rs.1000 crore
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Answer to Prelims question