RAS question
Which category of PMMY loan covers loans up to ₹50,000?
Correct answer: (A) Shishu.
Under Pradhan Mantri MUDRA Yojana, the Shishu category covers loans up to ₹50,000.
Explanation
PMMY classifies loans by the stage and financial need of the enterprise. The cited Press Information Bureau document lists four categories: Shishu, Kishor, Tarun and Tarun Plus. Shishu is the smallest-ticket category: it covers loans up to ₹50,000 and is meant for very small or early-stage business activities. That makes it suitable for people starting a new enterprise or operating at a minimal scale, such as a small retail outlet or repair service. The answer is therefore Shishu, not a higher-ticket category meant for enterprises needing stabilisation, expansion, equipment or production-capacity support.
Why the other options are wrong
- (B) Tarun is a higher PMMY category, covering loans above ₹5 lakh and up to ₹10 lakh, so it cannot apply to loans up to ₹50,000.
- (C) Yuva is not one of the PMMY loan categories listed by the official source; the categories are Shishu, Kishor, Tarun and Tarun Plus.
- (D) Kishore refers to the higher Kishor category, which covers loans above ₹50,000 and up to ₹5 lakh, not loans up to ₹50,000.
Concept
This tests the Indian Economy syllabus area of financial inclusion and credit support for micro-enterprises. PMMY categories recur in RAS because they are simple scheme-design facts that link welfare delivery with enterprise finance.