Pradhan Mantri MUDRA Yojana is aimed at
- A bringing the small entrepreneurs into formal financial system
- B providing loans to poor farmers for cultivating particular crops
- C providing pensions to old and destitute persons
- D funding the voluntary organizations involved in the promotion of skill development and employment generation
Show Answer
The correct answer is A.
The Pradhan Mantri MUDRA Yojana was launched in 2015 with the key purpose of:
- Expanding access to credit for small and micro business enterprises across manufacturing, trading and services sectors - who find it challenging to access formal credit facilities from banks and financial institutions.
- It creates a responsible ecosystem where credit help fuel the entrepreneurial drive and business growth of these small entrepreneurs / MSMEs operating truck stores, small shops, food stalls, repair shops etc. thereby boosting income generation and job creation at the grassroots economic level.
- The scheme allows banks to classify such loans under Priority Sector Lending requirements - thus incentivizing banks to undertake such lending and bring small business owners into the formal credit system.
Therefore, 'bringing the small entrepreneurs into formal financial system' encapsulates the principal motive behind the MUDRA initiative.
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