Under the Pradhan Mantri MUDRA Yojana, a loan in the Kishore category falls in which range?
- A.Up to Rs 50,000
- B.Rs 50,000 to Rs 5 lakh
- C.Rs 5 lakh to Rs 10 lakh
- D.Rs 10 lakh to Rs 20 lakh
Correct answer
Explanation
The correct answer is B, Rs 50,000 to Rs 5 lakh. The Pradhan Mantri MUDRA Yojana was launched in April 2015 to refinance small business loans given by banks, non-banking finance companies and micro finance institutions to non-farm income generating activities. Its three original categories were named after the stages of growth, Shishu for the smallest loan, Kishore for the middle band and Tarun for the largest, and no collateral is required for these loans.
Option A, up to Rs 50,000, is the Shishu category, meant for a borrower just setting up. Option C, Rs 5 lakh to Rs 10 lakh, is the Tarun category as the scheme was launched. Option D describes a higher band added later for borrowers who had repaid an earlier MUDRA loan. The order Shishu, Kishore, Tarun in rising size is the point the examiner tests.
Read the full article: Loans, Advances and Interest Rates: MCLR to NPA
Practice Questions
View allIn the context of rural credit and micro finance, KCC stands for:
- A.Krishi Credit Card
- B.Kisan Credit Card
- C.Krishi Credit Corporation
- D.Kisan Credit Corporation
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The Kisan Credit Card scheme was introduced in 1998 on the recommendation of the R V Gupta Committee and is worked by commercial banks, regional rural banks and cooperative banks.
Read the full explanation →Which model of self help group is also known as the international model?
- A.CDF model
- B.SEWAA model
- C.SAPAP model
- D.DWCRA model
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The South Asia Poverty Alleviation Programme model is called the international model of self help group formation because it was taken up with the support of the United Nations Development Programme and followed the same design across South Asian countries, beginning in India in the districts of Andhra Pradesh.
Read the full explanation →From which date did banks in India begin pricing new floating rate loans on the marginal cost of funds based lending rate, MCLR?
- A.1 July 2010
- B.1 April 2016
- C.1 October 2019
- D.1 April 2003
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The Reserve Bank introduced the MCLR from that date so that the price of a loan would follow the marginal, that is the latest, cost of raising funds rather than the average cost of old deposits.
Read the full explanation →The base rate system introduced by the Reserve Bank of India in July 2010 replaced which of the following?
- A.Marginal cost of funds based lending rate
- B.Benchmark Prime Lending Rate
- C.External benchmark lending rate
- D.Bank rate
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Under the BPLR system a bank announced a prime rate for its best customers and then lent to many borrowers below it, so the announced rate told a customer very little and the lending book was not transparent.
Read the full explanation →In which of the following charges on movable property does the possession of the goods remain with the borrower?
- A.Pledge
- B.Hypothecation
- C.Lien
- D.Mortgage
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In hypothecation a charge is created on movable property, such as a financed vehicle or the stock in a trader's shop, while the borrower keeps and uses the goods.
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