New 55% Off on All Courses - Enroll Now! Click Here

    Question

    Which of the following can NOT be the Member Lending

    Institutions for the Pradhan Mantri Mudra Yojana (PMMY)?
    A Scheduled Commercial Banks (SCBs) Correct Answer Incorrect Answer
    B Regional Rural Banks (RRBs) Correct Answer Incorrect Answer
    C Non-Banking Financial Companies (NBFCs) Correct Answer Incorrect Answer
    D Micro Finance Institutions (MFIs) Correct Answer Incorrect Answer
    E Payment Banks Correct Answer Incorrect Answer

    Solution

    Explanation: Under the Pradhan Mantri Mudra Yojana (PMMY), collateral-free institutional credit up to Rs. 10 lakh is provided by Member Lending Institutions (MLIs) i.e. Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs). Any individual, who is otherwise eligible to take a loan and has a business plan for small business enterprise can avail loan under the Scheme. S/he can avail loans for income generating activities in the manufacturing, trading, services sector and also for activities allied to agriculture across three loan products, viz. Shishu (loans up to Rs. 50,000), Kishore (loans above Rs. 50,000 and up to Rs. 5 lakh) and Tarun (loans above Rs. 5 lakh and up to Rs. 10 lakh).

    Practice Next

    Relevant for Exams: