The Pradhan Mantri MUDRA Yojana primarily aims at which one of the following?

Question

Accepted Answer

A. Bringing small and micro entrepreneurs into the formal financial system through collateral free loans. The Pradhan Mantri MUDRA Yojana aims at bringing small and micro entrepreneurs into the formal financial system by offering them collateral free loans, since a lack of collateral had long kept this segment locked out of institutional credit. It is not an education loan scheme, a housing subsidy, or a crop insurance programme, each of which targets a different beneficiary group entirely, ruling out the other options. Hence option A correctly identifies what MUDRA aims at.

Answer

A. Bringing small and micro entrepreneurs into the formal financial system through collateral free loans

Answer

B. Offering interest free education loans to first generation graduates

Answer

C. Subsidising rural housing construction

Answer

D. Insuring crop losses for small and marginal farmers