Pradhan Mantri MUDRA Yojana is aimed at:

The correct answer is A. PMMY was launched in April 2015 to bring small and micro entrepreneurs, who usually depend on moneylenders, into the formal credit system. Loans are given through banks, NBFCs and MFIs to non-corporate, non-farm enterprises such as small shops, repair units, food processing and service businesses. Under the schemes Shishu (up to Rs 50,000), Kishore (Rs 50,000 to 5 lakh) and Tarun (Rs 5 to 10 lakh), the loan amount is the classification. Tarun Plus, announced in 2024, extends the limit to Rs 20 lakh.

Why the others are wrong:

• B is wrong because crop-specific credit for farmers is covered by the Kisan Credit Card and agricultural credit policy, not MUDRA.
• C is wrong because old-age and destitute pensions fall under the National Social Assistance Programme (NSAP), which is a welfare scheme.
• D is wrong because skill development and employment funding comes through bodies like the NSDC and schemes like DDU-GKY and PMKVY, not MUDRA.

The core concept is financial inclusion and the MUDRA refinancing structure, through which MUDRA Ltd, a SIDBI subsidiary, refinances lenders. For Mains GS-III, this links to inclusive growth, credit access for the informal sector and the debate on NPAs in small lending.

Trap: aspirants often confuse MUDRA with agricultural credit schemes because of the word 'loan' and the farmer-focused Kisan schemes. MUDRA is for non-farm micro enterprises.