Pradhan Mantri Mudra Yojana (done)

Question 1

launched on

Answer 1

April 28th, 2015

Question 2

loans provided to whom

Answer 2

~ non- corporate
~ non-farm
~ small and micro enterprises

Question 3

MUDRA full form

Answer 3

Micro Units Development and Refinance Agency Limited

Question 4

what is MUDRA

Answer 4

• financial institution setup by the government of India under PMMY for development and refinancing of micro unit enterprises
• Aims to provide financial inclusiveness and support to the marginalized and hitherto socio-economically neglected classes

Question 5

who can lend under the MUDRA Yojana

Answer 5

Member lending institutions (MLI)

For example: Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Non-Banking Financial Companies, Micro Finance Institutions etc.

Question 6

why are loans given

Answer 6

for income generating activities in manufacturing, trading and service sectors and for activities allied to agriculture

Question 7

Steps taken to improve implementation of the Scheme: [6]

Answer 7

• Handholding support for facilitating submission of loan applications
• Provision for online applications through PSBloansin59minutes and Udyamimitra portal
• Intensive publicity campaigns for increased visibility of the scheme amongst the stakeholders
• Simplification of application forms
• Nomination of MUDRA Nodal Officers in Public Sector Banks (PSBs)
• Periodic monitoring of performance of PSBs with regard to PMMY
• Interest Subvention of 2% on prompt repayment of Shishu loans extended under PMMY for a period of 12 months to all eligible borrowers.

Question 8

MUDRA App- “MUDRA MITRA”

Answer 8

MUDRA MITRA is a mobile phone application available in Google Play Store and Apple App Store, providing information regarding ‘Micro Units Development and RefinanceAgency Ltd. (MUDRA)’ and its various products/ schemes.

It will guide a loan seeker to approach a Banker in availing MUDRA loan under PMMY. Users can also access useful loan related material including sample loan application forms in this app.

Question 9

Mudra Card

Answer 9

• MUDRA Card is an innovative credit product wherein the borrower can avail of credit in a hassle free and flexible manner.
• It provides a facility of working capital arrangement in the form of an overdraft facility to the borrower.

Since MUDRA Card is a RuPay debit card, it can be used for drawing cash from ATM or Business Correspondent or make purchase using Point of Sale (POS) machine. Facility is also there to repay the amount, as and when, surplus cash is available, thereby reducing the interest cost.

Question 10

MUDRA Loan categories

Answer 10

• under PMMY collateral free loans up to Rs. 20 lakh are offered in 4 categories namely SHISHU, KISHORE, TARUN and TARUN PLUS
• SHISHU loans up to Rs. 50,000
• KISHORE loans above Rs. 50,000 and up to Rs. 5 lakh
• TARUN loans above Rs. 5 lakh and up to Rs. 10 lakh
• TARUN PLUS above Rs. 10 lakh up to Rs. 20 lakh

Question 11

new loan category Tarun Plus

Answer 11

• for those who have previously availed and successfully repaid loans under the Tarun category allowing them to access funding between Rs. 10 lakh and Rs. 20 lakh
• the credit guarantee fund for micro units (CGFMU) will now provide guarantee coverage for these enhanced loans, further reinforcing the government’s commitment to nurturing a robust entrepreneurial in India

Question 12

new loan limit will take effect on

Answer 12

24th October, 2024

Question 13

when did the finance minister announced an increase in the loan limit to Rs. 20 lakh from Rs. 10 lakh

Answer 13

during the union budget 2024-25 on July 23, 2024