JAIIB · PPB

Government Sponsored Schemes

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

What is the primary objective of Government Sponsored Schemes in banking?

A

Government Sponsored Schemes aim to provide financial assistance to weaker sections and priority sector borrowers who lack access to formal credit, thereby promoting inclusive economic development.

Q

What is the maximum loan amount under the PM SVANidhi scheme for street vendors?

A

Rs. 50,000 in the third tranche of the scheme.

Q

Which central scheme provides collateral-free loans up to Rs. 10 lakh to micro and small enterprises?

A

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides collateral-free credit guarantee cover to banks lending up to Rs. 10 lakh (extendable up to Rs. 2 crore) to MSE borrowers.

Q

What is the full form of CGTMSE and what does it support?

A

Credit Guarantee Fund Trust for Micro and Small Enterprises; supports collateral-free loans.

Q

What is the full form of PMEGP and which ministry administers it?

A

PMEGP stands for Prime Minister's Employment Generation Programme, administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME) through KVIC, Khadi Boards, and DICs.

Q

Under PMAY Urban, what is the maximum subsidy period for EWS/LIG beneficiaries?

A

20 years loan tenure with interest subsidy under CLSS component.

Q

Under PMEGP, what is the maximum project cost for manufacturing units?

A

Under PMEGP, the maximum project cost for manufacturing units is Rs. 50 lakh, and for service/business units it is Rs. 20 lakh, with subsidy ranging from 15% to 35% depending on category and location.

Q

What is the Kishore loan category under MUDRA scheme?

A

Loans from Rs. 50,001 to Rs. 5 lakh for growing enterprises.

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