Question
Under the Pradhan Mantri Mudra Yojana (PMMY),
collateral-free institutional credit up to _________ is provided by Member Lending Institutions (MLIs).Solution
Under the Pradhan Mantri Mudra Yojana (PMMY), collateral-free institutional credit up to Rs. 10 lakh is provided by Member Lending Institutions (MLIs). It was launched by the government in 2015 for providing loans up to Rs. 10 lakh to the non-corporate, non-farm small/micro-enterprises. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is a financial institution set up by the Government. It provides funding to the non-corporate small business sector through various last-mile financial institutions like Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs). MUDRA does not lend directly to micro-entrepreneurs/individuals.
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