2024 · Q105
Which of the following statements is NOT correct for Pradhan Mantri Mudra Yojana (PMMY)?
indian-polity-economyeconomy-fundamentals
- AIt was launched in 2015
- BIt grants loans of up to ₹15 lakhs for income generating manufacturing, trading and services sectors
- CUnder this scheme only the term loan requirements can be met and not the working capital requirements
- DThere is no insistence on collateral for the sanction of loan
Explanation
The Pradhan Mantri MUDRA Yojana provides loans to micro and small enterprises for both term-loan and working-capital needs (through Shishu, Kishore and Tarun categories, with Tarun Plus added later), so statement C — which claims MUDRA covers only term loans and not working capital — is NOT correct. Statements A and B describe the scheme's refinance and loan structure, and the question's key identifies C as the intended answer. (Note: statement B's '₹15 lakh' ceiling is also factually imprecise, since MUDRA's standard categories cap at ₹50,000, ₹5 lakh and ₹10 lakh, with Tarun Plus up to ₹20 lakh.)