NEW DELHI : Finance minister Nirmala Sitharaman on Thursday said the government will offer 2% interest rate subvention for a period of 12 months to prompt loan payees under the Mudra scheme.
The decision is expected to bring much-needed relief to small borrowers under the Mudra Shishu loans up to ₹50,000. Small businesses have been severely hit with the imposition of nearly a two-month-long nationwide lockdown aimed at curbing the spread of covid-19.
This has also impacted the ability of these borrowers to repay their loans. The announcement is a part of the second tranche of nine measures being announced on Thursday aimed at migrants, street vendors, small traders and farmers as part of the ₹20 trillion package to revive the economy.