Which of the following statements is NOT correct for Pradhan Mantri Mu

Which of the following statements is NOT correct for Pradhan Mantri Mudra Yojana (PMMY)?

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It was launched in 2015

It grants loans of up to ₹15 lakhs for income generating manufacturing, trading and services sectors

Under this scheme only the term loan requirements can be met and not the working capital requirements

There is no insistence on collateral for the sanction of loan

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CAPF – 2024

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Statement B is NOT correct. Pradhan Mantri Mudra Yojana (PMMY), launched in 2015, provides loans up to ₹10 lakhs to eligible micro and small enterprises in the non-corporate, non-farm sector. The loans are categorized into Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakhs), and Tarun (₹500,001 to ₹10 lakhs). Statement B incorrectly states the maximum loan amount as ₹15 lakhs. Statement A is correct as the scheme was launched in 2015. Statement C is incorrect; PMMY covers both term loans (for acquiring fixed assets) and working capital requirements (often facilitated through the Mudra Card). Statement D is correct; a key feature of PMMY is that these loans are provided without requiring collateral security.

PMMY facilitates collateral-free institutional credit to micro-enterprises to support income-generating activities, thereby promoting entrepreneurship and self-employment.

The scheme aims to address the financial needs of the ‘unfunded’ micro-enterprises and play a role in formalizing this segment of the economy. Loans are provided through various financial institutions, including banks and NBFC-MFIs.

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