Question
How much percentage of the capital of MUDRA is
contributed by SIDBI?Solution
The Micro Units Development and Refinance Agency (MUDRA) is entirely funded by the Small Industries Development Bank of India (SIDBI), which contributes 100% of its capital. MUDRA was established to provide financial support to micro and small enterprises under the Pradhan Mantri MUDRA Yojana (PMMY). Key Points: 1. MUDRA supports small businesses by offering refinance services. 2. PMMY has three categories: Shishu, Kishor, and Tarun, based on loan amount. 3. Aims to promote entrepreneurship and self-employment. 4. SIDBI plays a crucial role in facilitating credit to MSMEs. 5. MUDRA loans are collateral-free, ensuring accessibility for small borrowers. Bee Facts: • 75% (a): Incorrect; SIDBI provides full funding. • 50% (b): Incorrect; not applicable to MUDRA. • 100% (c): Correct; SIDBI is the sole contributor. • 80% (d): Incorrect; not a valid figure.
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