Govt approves 2% interest subvention scheme for small Mudra borrowers

Benefit will be applicable for 12 months to all loan accounts under 'Sishu' category of Mudra scheme, provided they have not been classified as NPA as of March 31, 2020

The Union government on Wednesday approved a scheme to provide 2 per cent relief on interest to small bank borrowers under the Pradhan Mantri MUDRA Yojana (PMMY).

The interest subvention benefit will be applicable for a period of 12 months to all loan accounts under the Shishu category of the MUDRA scheme. However, such loan accounts should not have been classified as non-performing assets (NPAs) as of March 31 to qualify for the benefit. The scheme, which will cost the government Rs 1,542 crore, was approved by the Union Cabinet on Wednesday. It will benefit 30 million borrowers.

“The interest subvention will