Banking Awareness Quiz – Set 53 – MUDRA Yojana

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Number of Questions: 15

1. Which of the following scheme is for collateral free loans to to Small/Micro business enterprises and individuals in the non-agricultural sector
   A) PMJDY
   B) PMMY
   C) PMEGP
   D) PMRPY
   
   View answer

     Option B
   Explanation: Pradhan Mantri Mudra Yojana (PMMY) is a scheme to extend collateral free loans by Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs)  to Small/Micro business enterprises and individuals in the non-agricultural sector to enable them to setup or expand their business activities and to generate self employment.
2. What does R stands for in MUDRA?
   A) Return
   B) Refinance
   C) Risk
   D) Ratio
   
   View answer

     Option B
   Explanation: Micro Units Development & Refinance Agency
3. MUDRA Bank is a subsidiary of?
   A) SBI
   B) SIDBI
   C) RBI
   D) EXIM Bank
   
   View answer

   Option B
   Explanation: MUDRA Bank is proposed to be set up through enactment of a law which will take some time. So it was started as a subsidiary of Small Industries Development Bank of India (SIDBI). It was launched on 8 April 2015. On 6 January 2016, it was converted as a wholly owned subsidiary of SIDBI and renamed as MUDRA (SIDBI) Bank.
4. What is the maximum limit of loan under MUDRA Yojana?
   A) Rs 1 lakh
   B) Rs 5 lakh
   C) Rs 10 lakh
   D) Rs 50,000
   
   View answer

   Option C
   Explanation: Maximum limit of loan is Rs 10 lakh.
5. How many schemes/products are available under MUDRA Yojana?
   A) 2
   B) 3
   C) 5
   D) 4
   
   View answer

   Option B
   Explanation: Three- Shishu, Kishore and Tarun
6. What is the maximum loan limit under the Shishu product of MUDRA Yojana?
   A) Rs 5 lakh
   B) Rs 1 lakh
   C) Rs 50,000
   D) Rs 10 lakh
   
   View answer

   Option C
   Explanation: Upto Rs 50,000
7. What is the outlay of MUDRA Yojana?
   A) Rs 3,000 Crore
   B) Rs 23,000 Crore
   C) Rs 20,000 Crore
   D) Rs 50,000 Crore
   
   View answer

   Option C
   Explanation: For MUDRA Yojana- Rs 20,000 Crore ; For CGF- Rs 3,000 Crore
8. What is the maximum limit of loans that Micro Finance Institutions can give under the MUDRA Yojana?
   A) Rs 5 lakh
   B) Rs 1 lakh
   C) Rs 50,000
   D) Rs 10 lakh
   
   View answer

   Option B
   Explanation: Micro Finance Institutions – It can give loans only upto Rs 1 lakh (through Micro Credit Scheme)
9. Which of the following activities can be granted loan under MUDRA Yojana?
   A) purchase of Transport Vehicle
   B) Food Products Sector
   C) Textile Products Sector
   D) Agricultural Loans
   
   View answer

   Option D
   Explanation: Agricultural loans cannot be given however loans to agricultural allied sectors can be given.
10. For which loan product under the MUDRA Yojana a single page application form available?
    A) Shishu
    B) Kishore
    C) Tarun
    D) All of these
    
    View answer

    Option A
    Explanation: For Shishu single page for rest 3 page
11. What is the maximum loan limit under the Kishore product of MUDRA Yojana?
    A) Rs 50,000
    B) Rs 10 lakh
    C) Rs 5 lakh
    D) Rs 1 lakh
    
    View answer

    Option C
    Explanation: covering loans above 50,000/- and upto 5 lakh
12. Which of the following cannot grant loans under MUDRA Yojana?
    A) Private Sector Banks
    B) Micro Finance Institutions
    C) Non-Banking Finance Companies
    D) Payments Bank
    
    View answer

    Option D
    Explanation: Payments Bank cannot grant loan.
13. What is the maximum loan limit under the Tarun product of MUDRA Yojana?
    A) Rs 50,000
    B) Rs 1 lakh
    C) Rs 5 lakh
    D) Rs 10 lakh
    
    View answer

    Option D
    Explanation: covering loans above 5 lakh and upto 10 lakh
14. MUDRA Card is a _____
    A) credit card of RuPay branding
    B) credit card of EMV branding
    C) debit card of EMV branding
    D) debit card of RuPay branding
    
    View answer

    Option D
    Explanation: MUDRA Card is a debit card issued against the MUDRA loan account, for working capital portion of the loan. National Payment Corporation of India (NPCI) has given RuPay branding to MUDRA Card and also separate BIN / IIN for the same, by which credit history can be tracked.
15. What is the outlay of the Credit Guarantee Fund for MUDRA loans?
    A) Rs 1,000 crore
    B) RS 5,000 crore
    C) Rs 3,000 crore
    D) Rs 4,000 crore
    
    View answer

    Option C
    Explanation: Credit Guarantee Fund for MUDRA loans was formed with an outlay of Rs 3000 crore. As MUDRA is a collateral free loan hence to mitigate the issue of collaterals, MUDRA is offering a Credit Guarantee Product.

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