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CS Professional · Banking and Insurance - Laws and Practice · Various Government Schemes

Kiran Textiles, a micro enterprise in Surat, wants a collateral-free loan under Pradhan Mantri MUDRA Yojana for working capital. Under MUDRA categories, loans are Shishu up to Rs 50,000, Kishore above Rs 50,000 up to Rs 5 lakh, and Tarun above Rs 5 lakh up to Rs 10 lakh. Kiran Textiles needs Rs 7.5 lakh. Which statement is correct?

The loan of Rs 7.5 lakh falls in the Tarun category because it is above Rs 5 lakh and up to Rs 10 lakh. Shishu covers up to Rs 50,000 and Kishore up to Rs 5 lakh, so those categories cannot cover this requirement.

  1. AIt falls under Shishu and is limited to Rs 50,000
  2. BIt falls under Kishore, requiring a Rs 5 lakh cap only
  3. CIt falls under Tarun, being above Rs 5 lakh and up to Rs 10 lakhCorrect
  4. DIt falls outside MUDRA since the limit is Rs 5 lakh in total

Explanation

Rs 7.5 lakh exceeds Rs 5 lakh but is within Rs 10 lakh, so it is a Tarun loan. Shishu and Kishore caps are lower. MUDRA total limit is Rs 10 lakh, so the enterprise is within scope.

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