As of October 2024, which of the following is not recognized as a category under the Pradhan Mantri Mudra Yojana (PMMY)?
- AOption (a)
Shishu
- BOption (b)
Kishor
- COption (c)
Tarun
- DOption (d)
Yuva
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Correct answer
Yuva
Why this answer is correct
The correct answer is Yuva.
Key Points
- The Pradhan Mantri Mudra Yojana (PMMY) was launched on 8th April 2015 by Prime Minister Narendra Modi to provide financial support to small and micro businesses.
- Under PMMY, loans are categorized into three categories: Shishu, Kishor, and Tarun, based on the size and stage of the business.
- Shishu: Loans up to ₹50,000 for budding entrepreneurs aiming to start a small business.
- Kishor: Loans ranging from ₹50,001 to ₹5,00,000 for businesses looking to expand.
- Tarun: Loans ranging from ₹5,00,001 to ₹10,00,000 for well-established businesses seeking higher financial assistance.
- Yuva is not a recognized category under PMMY. The three categories focus on different stages of business development, but "Yuva" is not included in the official framework.
Additional Information
- Objectives of PMMY:
- To promote entrepreneurship among small and micro businesses in India.
- To provide financial inclusion to the unbanked segments of society.
- To create employment opportunities through the growth of small businesses.
- Eligibility Criteria:
- Any Indian citizen with a viable business plan in the non-farm sector can apply for a Mudra loan.
- The applicant must not have defaulted on any previous loans.
- Key Features of PMMY:
- Loans are offered without the need for collateral.
- The loans are provided through commercial banks, regional rural banks, NBFCs, and microfinance institutions.
- The scheme covers activities such as manufacturing, trading, and services.
- Impact of PMMY:
- PMMY has significantly contributed to the growth of small and micro-enterprises, especially in rural areas.
- It has helped bridge the gap in access to formal credit for entrepreneurs.
Important Points
- MUDRA Bank:
- The Micro Units Development and Refinance Agency (MUDRA) Bank was established to regulate and refinance microfinance institutions.
- MUDRA Bank plays a pivotal role in ensuring the success of PMMY by providing financial assistance to banks and NBFCs.
- PMMY Statistics:
- As of 2023, PMMY has disbursed loans to over 30 crore beneficiaries, with a majority being women entrepreneurs.
- It has contributed significantly to the development of MSMEs and created numerous job opportunities.
- Focus on Women and SC/ST Entrepreneurs:
- PMMY prioritizes loans for women entrepreneurs and individuals from SC/ST communities.
- This aligns with the government’s focus on inclusive growth and empowerment.