UPSC Prelims Practice Questions — Pradhan Mantri Mudra Yojana (PMMY) — completes 11 Years of empowering Small and Micro Entrepreneurs

Q1. The refinance-and-regulate institution created to operationalise the Pradhan Mantri Mudra Yojana was established as a wholly owned subsidiary of which one of the following institutions?

  • A. Small Industries Development Bank of India (SIDBI)
  • B. National Bank for Agriculture and Rural Development (NABARD)
  • C. National Housing Bank (NHB)
  • D. Export-Import Bank of India (EXIM Bank)

Q2. With reference to the design of the Pradhan Mantri Mudra Yojana (PMMY), consider the following statements: 1. It provides collateral-free institutional credit to non-corporate, non-farm micro and small enterprises. 2. Unlike the Stand-Up India Scheme, PMMY does not restrict eligibility to Scheduled Caste/Scheduled Tribe or women borrowers. 3. PMMY loans are disbursed directly by MUDRA Ltd. to borrowers rather than through Member Lending Institutions. Which of the statements given above is/are correct?

  1. It provides collateral-free institutional credit to non-corporate, non-farm micro and small enterprises.
  2. Unlike the Stand-Up India Scheme, PMMY does not restrict eligibility to Scheduled Caste/Scheduled Tribe or women borrowers.
  3. PMMY loans are disbursed directly by MUDRA Ltd. to borrowers rather than through Member Lending Institutions.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. Loans across the Shishu, Kishore, Tarun and Tarun Plus categories of the Pradhan Mantri Mudra Yojana are actually extended to borrowers through which one of the following channels?

  • A. Member Lending Institutions such as banks, NBFCs and MFIs
  • B. Only directly by MUDRA Ltd. through its own branches
  • C. Exclusively by the Reserve Bank of India's regional offices
  • D. Solely through the branches of SIDBI

Q4. Consider the following pairs of PMMY loan category and its loan-amount range: 1. Shishu — up to ₹50,000 2. Kishore — above ₹50,000 and up to ₹5 lakh 3. Tarun — above ₹5 lakh and up to ₹15 lakh 4. Tarun Plus — above ₹10 lakh and up to ₹20 lakh Which of the pairs given above is/are correctly matched?

  1. Shishu — up to ₹50,000
  2. Kishore — above ₹50,000 and up to ₹5 lakh
  3. Tarun — above ₹5 lakh and up to ₹15 lakh
  4. Tarun Plus — above ₹10 lakh and up to ₹20 lakh
  • A. 1, 2 and 4 only
  • B. 1 and 3 only
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4

Q5. At the 11-year milestone of the Pradhan Mantri Mudra Yojana (April 2026), the single largest share of the loans sanctioned had gone to which one of the following borrower groups?

  • A. Women entrepreneurs
  • B. First-time entrepreneurs
  • C. Scheduled Caste and Scheduled Tribe borrowers
  • D. Minority-community borrowers

Q6. As per the Ministry of Finance at the 11-year milestone (April 2026), approximately how many loans (cumulative) had been sanctioned under the Pradhan Mantri Mudra Yojana since inception?

  • A. 57.79 crore
  • B. 40.07 crore
  • C. 52.37 crore
  • D. 62.15 crore

Q7. Following the enhancement announced in the Union Budget 2024-25, the maximum loan amount now available to a borrower under the Pradhan Mantri Mudra Yojana (through its highest category) is:

  • A. ₹20 lakh
  • B. ₹10 lakh
  • C. ₹50 lakh
  • D. ₹1 crore

Q8. The doubling of the Pradhan Mantri Mudra Yojana loan ceiling to ₹20 lakh, along with the introduction of the Tarun Plus category, was announced in which one of the following Union Budgets?

  • A. Union Budget 2024-25
  • B. Union Budget 2023-24
  • C. Union Budget 2025-26
  • D. Union Budget 2022-23

Q9. The Pradhan Mantri Mudra Yojana is administered under which one of the following departments/ministries of the Government of India?

  • A. Department of Financial Services, Ministry of Finance
  • B. Ministry of Micro, Small and Medium Enterprises
  • C. Department of Economic Affairs, Ministry of Finance
  • D. Ministry of Rural Development

Q10. With reference to the social-inclusion outcomes of the Pradhan Mantri Mudra Yojana as reported at its 11-year milestone, consider the following statements: 1. Around two-thirds of the cumulative loans have been sanctioned to women entrepreneurs. 2. Approximately one-fifth of the loans have been extended to first-time entrepreneurs. 3. Under the scheme, only women borrowers are eligible for the collateral-free credit. Which of the statements given above is/are correct?

  1. Around two-thirds of the cumulative loans have been sanctioned to women entrepreneurs.
  2. Approximately one-fifth of the loans have been extended to first-time entrepreneurs.
  3. Under the scheme, only women borrowers are eligible for the collateral-free credit.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q11. Among the following schemes, which one provides the highest per-borrower bank-loan ceiling to an individual enterprise?

  • A. Stand-Up India Scheme
  • B. Pradhan Mantri Mudra Yojana
  • C. PM SVANidhi
  • D. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)