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Consider the following statements about MUDRA Scheme:

(A) It is special fund to finance small and medium enterprises

(B) It does not finance Companies

(C) Co-operative societies are eligible to avail MUDRA re-finance

(D) The maximum loan amount is Rs. 1 Crore

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 4

MUDRA (Micro Units Development & Refinance Agency) refinances loans to non-corporate, non-farm micro/small enterprises, so it does not finance companies (B is correct), and eligible refinancing institutions include cooperative banks/societies (C is correct).

However, MUDRA targets micro enterprises (not 'small and medium enterprises' as stated in A), and the maximum loan amount under MUDRA (Shishu/Kishor/Tarun) is far below Rs. 1 Crore, so A and D are incorrect.

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