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)?

[amp_mcq option1=”It was launched in 2015″ option2=”It grants loans of up to ₹15 lakhs for income generating manufacturing, trading and services sectors” option3=”Under this scheme only the term loan requirements can be met and not the working capital requirements” option4=”There is no insistence on collateral for the sanction of loan” correct=”option2″]

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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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