What does M stand for in MUDRA yojana?

Correct option is A

The correct answer is (a) Micro.
MUDRA stands for "Micro Units Development and Refinance Agency." It is a financial institution in India that was established to provide credit and financial support to micro and small enterprises (MSEs).

•  Objective: MUDRA aims to promote entrepreneurship and provide easy access to finance for small businesses, particularly in the unorganized sector.
• Types of Loans: MUDRA provides loans under three categories:
• Shishu: Loans up to ₹50,000 for startups and small businesses.
• Kishore: Loans from ₹50,000 to ₹5 lakh for established businesses.
• Tarun: Loans from ₹5 lakh to ₹10 lakh for more mature businesses.
• Support to Micro Enterprises: The focus is primarily on micro-enterprises, which are small businesses that require relatively low investment to start and operate.

Information Booster:

Micro, Small, and Medium Enterprises (MSME) 

The Government of India revised the definition of Micro, Small, and Medium Enterprises (MSMEs) in 2020 under the Aatmanirbhar Bharat Abhiyan. According to the new classification (effective from 1st July 2020):

• Investment ≤ ₹1 crore and Turnover ≤ ₹5 crore
• Investment ≤ ₹10 crore and Turnover ≤ ₹50 crore
• Investment ≤ ₹50 crore and Turnover ≤ ₹250 crore.
• The Ministry of Micro, Small & Medium Enterprises (MSME) governs these enterprises in India.
• MSMEs contribute ~30% to India’s GDP and employ over 11 crore people.
• MSEs are vital for exports, employment generation, and rural development.
• The classification is uniform for both manufacturing and services sectors.
• Udyam Registration is required for enterprises to officially avail government benefits.
• MSEs get benefits like priority sector lending, interest subvention, credit guarantee, etc.

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