To support MSMEs under one of the measures announced in the Aatma Nirbhar Bharat Abhiyan, the union cabinet has approved an interest subvention of 2% for Shishu MUDRA loan borrowers. This is applicable to loans that are outstanding as on 31st March 2020 and are not NPAs.
Sishu Mudra loan borrowers to get interest subvention of 2%
- This will benefit 9.37 crore people
- Will be effective from 1st June, 2019 till 31st May 2021
- Total Govt. expenditure would be Rs 1,540 crore.
- Applicable to loans that are outstanding as on 31st March, 2020 and are not NPAs.
- For borrowers who have been allowed a moratorium by their respective lenders, the scheme would commence post completion of the moratorium period for a period of 12 months.
Source: N. Sitharaman Office