New Delhi: The government on Wednesday decided to provide a 2 percent interest subvention to borrowers under the ‘Shishu’ category of the flagship Pradhan Mantri MUDRA Yojana (PMMY).
Under the Shishu category, collateral-free loans of up to ₹50,000 are given to beneficiaries.
The Government Union Cabinet approved the scheme for interest subvention of 2 percent to Shishu loan category borrowers under PMMY, outstanding as of March 31, 2020, for a period of 12 months to eligible borrowers, Information and Broadcasting Minister Prakash Javadekar said.
The PMMY was launched by Prime Minister Narendra Modi on April 8, 2015, for providing loans up to 10 lakh to non-corporate, non-farm small/micro-enterprises.
These loans are classified as MUDRA loans under PMMY. These loans are given by commercial banks, RRBs, small finance banks, MFIs, and NBFCs.