Pradhan Mantri MUDRA Yojana is aimed at

1. A

   Bringing the small entrepreneurs into formal financial system

   Pradhan Mantri MUDRA Yojana (2015) refinances and originates collateral-light loans to non-corporate, non-farm micro and small enterprises through last-mile lenders, so that small entrepreneurs enter the formal credit system (Shishu, Kishore, Tarun). That is the official key.

2. B

   Providing loans to poor farmers for cultivating particular crops

   Loans to poor farmers for particular crops are the domain of crop loans, Kisan Credit Card and interest-subvention, not MUDRA’s core design. This option is not the key.

3. C

   Providing pensions to old and destitute persons

   Pensions for the old and destitute are NSAP, APY or old-age pension schemes, not MUDRA. This option is wrong.

4. D

   Funding the voluntary organizations involved in the promotion of skill development and employment generation

   Funding voluntary organisations for skill and employment is closer to NSDC/NGO grants, not the MUDRA loan product. This option is not the key.

Summary. Official key is (a) bringing the small entrepreneurs into the formal financial system. MUDRA Ltd. refinances banks, NBFCs and MFIs that lend under PMMY to micro units. The three products are defined by loan size, not by crop or pension. Farmers’ crop credit and social pensions are different Union schemes. Only (a) states the aim correctly.