Q. Consider the following statements regarding MUDRA scheme:
1.It aims to provide loan to corporates, medium and large enterprises.
2. Shishu, Kishore, Tarun are the components of MUDRA scheme.
Which of the above statements is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 and 2

Answer: B

Statement 1 is incorrect: It was launched by the government in 2015 for providing loans up to Rs. 10 lakh to the non-corporate, non-farm small/micro-enterprises.

Statement 2 is correct: Categories of Loans: MUDRA has created three products as per the stage of growth and funding needs of the beneficiary micro unit:

Shishu: Covering loans up to Rs. 50,000.

Kishore: Covering loans above Rs. 50,000 and up to Rs. 5 lakh

Tarun: Covering loans above Rs. 5 lakh and up to Rs. 10 lakh.

Source: Business Standard