Question

How much loan amount will be granted by bank under 'Pradhan Mantri Mudra Yojana' for industry, business and service under 'Kishor enterprise' ?

• A. More than Rs. 50,000 and up to Rs. 5,00,000
• B. More than Rs. 1,00,000 and up to Rs. 5,00,000
• C. More than Rs. 50,000 and up to Rs. 1,00,000
• D. Rs. 50,000

Hint:

Remember the progression of names from youngest to oldest stage: Shishu (up to 50k) $\rightarrow$ Kishor (50k to 5 Lakhs) $\rightarrow$ Tarun (5 Lakhs to 10 Lakhs).

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
The Pradhan Mantri MUDRA Yojana (PMMY) was launched in April 2015 to provide collateral-free microloans to non-corporate, non-farm small and micro enterprises.
The scheme categorizes loans into three developmental stages—Shishu, Kishor, and Tarun—to match the growth phase of the borrowing business.

Step 2: Detailed Explanation:
Let us look at the three categories and their loan limits under PMMY:
1. Shishu: Targeted at startups and initial-stage entrepreneurs. It covers loans up to Rs. 50,000.
2. Kishor: Targeted at businesses that are already established but require additional funding to purchase equipment, raw materials, or expand operations. It covers loans from more than Rs. 50,000 up to Rs. 5,00,000.
3. Tarun: Targeted at relatively larger micro-units requiring substantial capital for business expansion. It covers loans from more than Rs. 5,00,000 up to Rs. 10,00,000.
Analyzing the options:
- Option (A) matches the official guidelines for the Kishor loan category, which starts above Rs. 50,000 and extends up to Rs. 5,00,000.
- Options (B) and (C) are incorrect as they do not align with the standard parameters defined by the Micro Units Development and Refinance Agency (MUDRA).
- Option (D) defines the upper limit of the Shishu category rather than the Kishor category.

Step 3: Final Answer:
The correct option is (A).