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

Under the Pradhan Mantri Mudra Yojana (PMMY), Rajesh, a small tea-stall owner in Patna, needs Rs 35,000 to expand his stall for working capital and equipment. Which loan category applies to him?

Rajesh's Rs 35,000 requirement falls under the Shishu category of PMMY, which covers loans up to Rs 50,000. Kishore applies above Rs 50,000 up to Rs 5 lakh, and Tarun above Rs 5 lakh up to Rs 10 lakh. PMMY does finance non-farm micro businesses.

  1. AShishu, as the category is for loans up to Rs 50,000Correct
  2. BKishore, as it covers loans above Rs 50,000 and up to Rs 5 lakh
  3. CTarun, as it covers loans above Rs 5 lakh and up to Rs 10 lakh
  4. DNone, as PMMY does not finance non-farm small businesses

Explanation

PMMY has three categories: Shishu up to Rs 50,000, Kishore above Rs 50,000 and up to Rs 5 lakh, and Tarun above Rs 5 lakh and up to Rs 10 lakh. A Rs 35,000 need falls within Shishu. Kishore would apply only if the amount exceeded Rs 50,000. PMMY covers non-farm micro enterprises, so the last option is wrong.

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