Explanation
Pradhan Mantri MUDRA Yojana (PMMY) is aimed at providing affordable credit to micro and small enterprises (MSEs) in the non-farm sector.
Here's a breakdown of its key objectives
- Financial Inclusion: MUDRA helps bring unbanked or underserved entrepreneurs into the formal financial system, enabling them to access loans from banks and other financial institutions. - Loan Products: The scheme offers a range of loan products categorized under three categories based on loan amount Shishu (up to Rs. 50,000), Kishore (above Rs. 50,000 up to Rs. 5 lakh), and Tarun (above Rs. 5 lakh up to Rs. 10 lakh). - Focus on Non-Farm Sector: MUDRA loans cater to income-generating micro enterprises engaged in manufacturing, trading, or service activities. - Activities allied to agriculture, like poultry, dairy, and beekeeping, are also included.
Hence, option A is the correct answer.