Government Schemes: GatiShakti, MUDRA, Stand-Up, Vishwakarma, PMEGP

The Union Cabinet approved the Credit Guarantee Fund for Micro Units (CGFMU) in 2016 to guarantee PMMY loans; it is managed by the National Credit Guarantee Trustee Company (NCGTC). The DICGC today insures bank deposits, ECGC covers export credit risk, and the CGTMSE (set up by the government and SIDBI, not the RBI) guarantees MSE loans more generally.

Statements 1 and 2 are correct. Stand-Up India (5 April 2016) aimed to finance at least one SC/ST borrower and at least one woman borrower per bank branch, with SIDBI running the online portal, refinance and handholding support. Statement 3 is wrong: the scheme was run by the Department of Financial Services through banks; MoHUA runs PM SVANidhi. According to a Lok Sabha reply of July 2026, the scheme was operational until March 2025.

A MUDRA Card is a RuPay debit card issued against a working-capital limit sanctioned under PMMY (often a cash credit or overdraft). The borrower can draw money through ATMs or point-of-sale machines as needed and repay when cash is available, so interest is paid only on the amount used. It is different from the PM SVANidhi credit card given to street vendors and from Udyam registration, which is free online registration of MSMEs with no physical card.

Following the Union Budget 2024-25, the government notified on 24 October 2024 a new Tarun Plus category for loans above ₹10 lakh and up to ₹20 lakh, open only to entrepreneurs who have taken and repaid Tarun loans. PMMY categories now are Shishu (up to ₹50,000), Kishore (above ₹50,000 to ₹5 lakh), Tarun (above ₹5 lakh to ₹10 lakh) and Tarun Plus. Guarantee cover for these loans is provided through the Credit Guarantee Fund for Micro Units.

Statements 1 and 3 are correct. MUDRA Ltd (launched with PMMY on 8 April 2015) is a wholly owned subsidiary of SIDBI. It does not lend to borrowers itself; it provides refinance to member lending institutions such as banks, RRBs, small finance banks, NBFCs and MFIs, which make the actual PMMY loans. These loans support income-generating micro enterprises in manufacturing, trading and services, and activities allied to agriculture have been included since 2016-17.

Only proposal 1 fits. Stand-Up India gave composite loans between ₹10 lakh and ₹1 crore to SC/ST and women entrepreneurs for a greenfield (first-time) enterprise in manufacturing, services or trading, and from 2019 in activities allied to agriculture. Proposal 2 fails because expansion of an existing unit is not greenfield; proposal 3 fails because ₹2 crore exceeds the ₹1 crore ceiling.

All three statements are correct. The Cabinet decision of 27 August 2025 extended the lending period to 31 March 2030 (outlay ₹7,332 crore) and raised the first two tranches to ₹15,000 and ₹25,000, keeping the third at ₹50,000. The 7 per cent interest subsidy continues, credited quarterly to standard accounts, and a UPI-linked RuPay credit card (limit starting at ₹10,000 and rising to ₹30,000) is available to vendors who have repaid the second tranche. Digital cashback of up to ₹1,600 is also offered.

Statements 1 and 3 are correct. PMMY loans go up to ₹20 lakh (Tarun Plus, October 2024), while Stand-Up India loans ranged from ₹10 lakh to ₹1 crore. Both covered allied agricultural activities (PMMY from 2016-17, Stand-Up India from 2019). Statement 2 is wrong: only Stand-Up India was restricted to greenfield enterprises; MUDRA loans also finance existing micro units for working capital and expansion.