Are you appearing for the IIBF MSME Exam 2026? In this guide, we cover the 190 most important questions. This comprehensive mock test is specifically designed for the IIBF Certificate Course on MSME to help you master the concepts quickly.
Revised MSME Classification (Effective 2025-26)
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✅ General Practice
Q51Which of the following recommendations was NOT made by the "Tandon Committee" (1974) regarding the lending norms for working capital?Q52Under the revised Micro and Small Enterprises Cluster Development Programme (MSE-CDP) guidelines (applicable in 2026), which of the following statements regarding the Government of India (GoI) grant limits is INCORRECT?Q53Which of the following statements regarding the Micro and Small Enterprises Cluster Development Programme (MSE-CDP) is INCORRECT?Q54Consider the following statements regarding the Special Purpose Vehicle (SPV) in the context of MSME clusters:Q55In the context of the Cluster Development Programme, interventions are classified as "Soft" and "Hard". Consider the following activities:Q56Regarding the "Implementing Agency" (IA) in the MSE-CDP scheme, identify the INCORRECT statement.Q57Which financial institution, established under an Act of Parliament in 1990, serves as the Principal Financial Institution for the promotion, financing, and development of the MSME sector?Q58In January 2026, the Union Cabinet approved a significant equity infusion into the Small Industries Development Bank of India (SIDBI). Which of the following statements accurately reflect this decision?Q59The National Small Industries Corporation (NSIC) was established in 1955. Which of the following specific schemes is managed by NSIC to support the commercial needs of MSMEs?Q60The "SRI Fund" (Self Reliant India Fund) was launched to provide growth capital to MSMEs. It operates through a "Mother-Fund and Daughter-Fund" structure. Who is the sole anchor investor for the Mother Fund?Q61With reference to the "SME Growth Fund" and equity support initiatives announced in the Union Budgets (2025-26 and 2026-27), consider the following statements:Q62Regarding the funding pattern under the MSE-CDP (New Guidelines) effective for the current cycle (2025-26), identify the INCORRECT combination of Project Cost and maximum Government of India (GoI) Grant contribution.Q63The UNIDO (United Nations Industrial Development Organization) methodology for Cluster Development is the standard model adopted by India. Which of the following represents the correct chronological sequence of the main phases?Q64Michael Porter's "Diamond Model" is a framework used to analyze why certain clusters achieve competitive advantage. Which of the following is NOT one of the four main attributes of the Diamond?Q65The Pradhan Mantri MUDRA Yojana (PMMY) classifies loans into three categories based on the stage of growth. Match the category with the correct standard loan limit:Q66Under the Pradhan Mantri Mudra Yojana (PMMY), a new loan category titled "Tarun Plus" was operationalized in late 2024. What is the maximum loan limit available under this specific category?Q67Scenario: A bank manager demands a "Third Party Guarantee" for a ₹18 lakh loan applied under the "Tarun Plus" category of the Mudra (PMMY) scheme.Q68The Office of the Development Commissioner (MSME), formerly known as SIDO, functions as the nodal agency for the sector. Which of the following is NOT a primary function of this office?Q69Identify the correct statements regarding the MSME Development Facilitation Offices (MSME-DFOs), formerly known as Small Industries Service Institutes (SISIs):Q70Which authority was established under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 as the apex body to examine factors affecting the promotion of MSMEs and review Central Government policies?Q71Scenario: A traditional "Bamboo Craft" cluster in the North East Region (NER) has organized itself. The cluster consists of 600 artisans. They are applying for a "Major Cluster" project under the Revamped SFURTI Scheme.Q72Which of the following statements regarding the SFURTI (Scheme of Fund for Regeneration of Traditional Industries) is INCORRECT?Q73Consider the following statements regarding the ASPIRE (A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship) scheme:Q74The "Raising and Accelerating MSME Performance" (RAMP) scheme, which is operational until the financial year 2026-27, is primarily supported by which international financial institution?Q75The "MSME Sustainable (ZED) Certification" scheme is a key component of the MSME Champions ethos. The scheme certifies MSMEs based on their systems and processes. What are the three certification levels (or gradients) currently offered under this scheme?Q76Scenario: "Precision Gears Ltd," a Small Enterprise owned by a Woman Entrepreneur, wants to apply for the "ZED Gold" certification in February 2026. The standard certification fee is applicable.Q77Established in 1978 to provide a focal point for the promotion of small, village, and cottage industries at the "grassroots" level, which agency functions under the State Directorate of Industries to provide all services under a "Single Window"?Q78The National Institute for Entrepreneurship and Small Business Development (NIESBUD) functions as an apex body for coordinating and overseeing entrepreneurship development activities in India. Where is its headquarters located?Q79The PM Vishwakarma Scheme provides collateral-free enterprise development loans to traditional artisans. What is the maximum loan amount available in the Second Tranche, and what is the fixed concessional interest rate charged to the beneficiary?Q80Consider the following statements regarding the "PM Vishwakarma Scheme" and its integration with MSME value chains:Q81Consider the following statements regarding the PM Vishwakarma Scheme toolkit incentives:Q82Consider the following statements regarding the "Udyam Assist Platform" (UAP) launched by the Ministry of MSME:Q83Under the Udyam Assist Platform (UAP) launched by the Ministry of MSME, which of the following statements is NOT correct?Q84Scenario: "Ramesh operates a small tailoring shop with an annual turnover of ₹15 lakh. He does not have a GSTIN and is therefore unable to register on the main Udyam Portal. He needs to formalize his business to avail a Priority Sector Loan."Q85Which of the following statements regarding the Udyam Assist Platform (UAP) is INCORRECT?Q86What is the primary objective of the "RAMP" (Raising and Accelerating MSME Performance) scheme, which is a World Bank-assisted program?Q87Consider the following statements regarding the RAMP (Raising and Accelerating MSME Performance) scheme:Q88Scenario: "A rural entrepreneur wants to set up an agro-processing business. She needs a facility that provides 'incubation'—access to equipment for trial production and hands-on training to refine her product before she invests in her own machinery."Q89Regarding the "Start-up India" initiative, identify the INCORRECT statement:Q90The government has specific schemes to support Women Entrepreneurs. Which of the following statements regarding these initiatives is INCORRECT?Q91In the context of the "Interest Equalization Scheme" for Pre and Post Shipment Rupee Export Credit (extended through 2026), what is the annual cap on the subvention benefit available per MSME exporter?Q92Regarding the "Lean Manufacturing Competitiveness Scheme" (LMCS) for MSMEs, which of the following is NOT a correct feature or objective?Q93Under the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021, a specialized "Pre-Packaged Insolvency Resolution Process (PPIRP)" was introduced specifically for MSMEs. What is the minimum default amount required to initiate this process?Q94Regarding the "Pre-Packaged Insolvency Resolution Process" (PPIRP) for MSMEs for MSMEs introduced under the Insolvency and Bankruptcy Code, which of the following statements is INCORRECT?Q95The "Pre-Packaged Insolvency Resolution Process" (PPIRP) for MSMEs is designed to be faster than the standard CIRP. What is the statutory time limit for the completion of the entire process from the commencement date?Q96Regarding the Pre-packaged Insolvency Resolution Process (PPIRP) for MSMEs introduced under the Insolvency and Bankruptcy Code, consider the following statements:Q97Scenario: "Delta Fabrication," a registered Small Enterprise, has defaulted on a loan repayment of Rupees 40 Lakh to its creditor bank. The default has persisted for 5 months. The promoter wants to resolve this insolvency while retaining management control.Q98What is the primary objective of the "Pre-Packaged Insolvency Resolution Process" (PPIRP) specifically designed for MSMEs?Q99Under the SARFAESI Act, 2002, what is the minimum outstanding debt threshold required for a secured creditor to enforce security interest?Q100Under the SARFAESI Act, what is the significance of the "60-Day Notice" issued under Section 13(2)?
Frequently Asked Questions
What is the passing criteria for the IIBF MSME Exam?
Candidates typically need to score at least 50 marks out of 100 to pass the IIBF Certificate Course on MSME.
What is the new definition of a Small Enterprise for the 2026 exams?
A Small Enterprise has Investment up to ₹25 Crore and Turnover up to ₹100 Crore, as per Union Budget 2025 revisions.
Is the IIBF MSME Exam syllabus updated with 2025 guidelines?
Yes, the exam covers the latest updates including the enhanced CGTMSE limit of ₹10 Crore and revised definition limits.
What is the maximum loan under the PMMY (MUDRA) Tarun Plus category?
The Tarun Plus category offers loans between ₹10 Lakh and ₹20 Lakh.
What is the mandatory TReDS registration threshold?
Companies with a turnover exceeding ₹250 Crore must register on the TReDS platform.
What is the interest rate penalty for delayed payments to MSMEs?
The buyer must pay compound interest with monthly rests at three times the Bank Rate notified by the RBI.
Does the IIBF MSME Exam cover the RAMP scheme?
Yes, the Raising and Accelerating MSME Performance (RAMP) scheme is an important topic in the syllabus.
What is the minimum default amount for MSME Pre-Pack Insolvency?
The minimum default amount to initiate PPIRP is ₹10 Lakh.
Can Retail and Wholesale Traders register as MSMEs?
Yes, they can register on Udyam but are eligible primarily for Priority Sector Lending (PSL) benefits.
What is the maximum subsidy under PMEGP?
The maximum subsidy is 35% of the project cost for Special Category beneficiaries in rural areas.
What is the Udyam Assist Platform used for?
It helps Informal Micro Enterprises (IMEs) generate a registration certificate without GSTIN to avail PSL benefits.
What is the risk weight for unrated MSME exposures?
The RBI has reduced the risk weight for unrated non-retail MSME exposures to 85%.
What is the PM Vishwakarma loan interest rate?
Beneficiaries are charged a fixed concessional interest rate of 5% per annum.
What is the maximum project cost for a CFC under MSE-CDP?
The maximum eligible project cost for calculating the grant is ₹30 Crore.
What is the MSME contribution to India’s exports?
The MSME sector contributes approximately 45% to 48% of India’s total exports.
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