Pradhan Mantri MUDRA Yojana is aimed at

1. Bringing the small entrepreneurs into the formal financial system
2. Providing loans to poor farmers for cultivating particular crops
3. Providing pensions to old and destitute persons
4. Funding the voluntary organizations involved in the promotion of skill development and employment generation.

Explanation

Option (a) is correct

• It was launched in 2015 to provide loans up to ₹10 lahks to non-corporate, non-farm small/micro enterprises or businesses, i.e. micro units, under the definition of MSME.
• It is an initiative by the Ministry of Finance to ‘fund the unfunded’.
• Types of loans:
  • Shishu: covering loans up to Rs. 50,000.
  • Kishor: covering loans above Rs. 50,000 and up to 5 Lakh.
  • Tarun: covering loans above Rs. 5 lahks and up to 10 lahks.

Answer: (a) Bringing the small entrepreneurs into formal financial system; Difficulty Level: Medium