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

Meera, a first-time woman entrepreneur in Pune, wants to start a small manufacturing unit and seeks a composite loan from a bank without collateral under a central government scheme meant for micro enterprises. Which scheme is the most relevant?

Pradhan Mantri Mudra Yojana is most relevant. It offers collateral-free loans to micro and small non-farm enterprises through banks and other lenders, in Shishu, Kishore and Tarun categories. The other schemes are savings or insurance products, not business credit schemes.

  1. ASukanya Samriddhi Yojana
  2. BPradhan Mantri Mudra Yojana (PMMY)Correct
  3. CPradhan Mantri Suraksha Bima Yojana
  4. DSenior Citizens Savings Scheme

Explanation

PMMY provides collateral-free loans to non-corporate, non-farm micro enterprises through banks and other lenders under categories such as Shishu, Kishore and Tarun. The other options are savings or insurance schemes and do not provide business credit.

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