Question

 The start-up loans offered by MUDRA banks to small enterprises, business which are non-corporate, and non-farm small/micro enterprises is up to the limit of Rs ________ lacs.

• A. 20
• B. 10
• C. 40
• D. 30

Answer 1

The Correct Option is B

The question is about the maximum limit of start-up loans that MUDRA (Micro Units Development and Refinance Agency) banks in India provide to small, non-corporate, and non-farm micro or small enterprises. This question is rooted in the field of Innovation & Entrepreneurship concerning government schemes promoting small businesses.

MUDRA is a concept introduced by the Government of India to support and fund the small-scale business sector. It offers various financial products to support micro-enterprises. One such product is the Mudra Loan.

MUDRA loans are classified into three categories based on the stage of growth and funding needs of the micro unit. These categories are:

• Shishu: Covering loans up to Rs. 50,000.
• Kishor: Covering loans above Rs. 50,000 and up to Rs. 5,00,000.
• Tarun: Covering loans above Rs. 5,00,000 and up to Rs. 10,00,000.

The question specifically asks for the upper limit for these loans, particularly those that fall under the 'Tarun' category. This category supports micro-businesses with a larger funding requirement and has an upper limit set at Rs. 10,00,000 (or Rs. 10 lacs).

Thus, the correct answer is 10, as the maximum loan amount provided under the MUDRA scheme for start-ups, non-corporate, and non-farm micro-enterprises is Rs. 10 lacs.

To rule out the incorrect options:

• 20 lacs: No category under MUDRA loans offers up to Rs. 20 lacs.
• 30 lacs: Similarly, there is no provision for this amount under MUDRA loans.
• 40 lacs: This amount also exceeds the MUDRA scheme offering and does not align with 'Tarun' or any other sub-category within MUDRA.

The conclusion here can be drawn from the categories and loan structures defined within the official guidelines of MUDRA, confirming that the loan cap for start-ups as mentioned is indeed Rs. 10 lacs.