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How much collateral-free loan is provided under Pradhan Mantri Mudra Yojana (PMMY)?

  1. A
    ₹5 lakh
  2. B
    ₹3 lakh
  3. C
    ₹10 lakh
  4. D
    ₹2 lakh

Solution & Step-by-step Explanation

* Under the Pradhan Mantri Mudra Yojana (PMMY), collateral-free institutional loans up to ₹10 lakh are provided to micro and small non-corporate, non-farm enterprises.
The loans are classified into three operational categories based on development stages:

Shishu: Covering loans up to ₹50,000

Kishor: Covering loans above ₹50,000 and up to ₹5 lakh

Tarun: Covering loans above ₹5 lakh and up to ₹10 lakh

Practice this question

Try it yourself before checking the explanation above.

How much collateral-free loan is provided under Pradhan Mantri Mudra Yojana (PMMY)?
A
₹5 lakh
B
₹3 lakh
C
₹10 lakh
D
₹2 lakh

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