June 05, 2020
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FM Announces 2% Interest Subvention On Smallest Category MUDRA Loans

As much as Rs 1,500 crore interest subvention would be given for MUDRA-Shishu loans of up to Rs 50,000.

FM Announces 2% Interest Subvention On Smallest Category MUDRA Loans
Finance Minister Nirmala Sitharaman.
FM Announces 2% Interest Subvention On Smallest Category MUDRA Loans
outlookindia.com
2020-05-14T18:05:41+0530

Finance Minister Nirmala Sitharaman on Thursday announced a 2 per cent interest subvention on the smallest category of loans given under the MUDRA scheme.

As much as Rs 1,500 crore interest subvention would be given for MUDRA-Shishu loans of up to Rs 50,000. 

Finance Minister also announced a Rs 70,000-crore boost to housing sector by extending the subsidy scheme for affordable housing for the middle income group.

The credit-linked subsidy scheme for the middle income group with an annual income of Rs 6 lakh to Rs 18 lakh was operationalised from May 2017 and extended up to March 2021.

She said the scheme is being extended by one year to benefit 2.5 lakh middle income families.

She also announced a Rs 5,000-crore special credit facility for street vendors by providing them with working capital of up to Rs 10,000, she said adding this would support 50 lakh street vendors.

For farmers, she announced a Rs 30,000-crore additional emergency working capital funding through the National Bank for Agriculture and Rural Development (NABARD).

NABARD will extend additional refinance support of Rs 30,000 crore for crop loan requirement of rural co-op banks and regional rural banks.

This, she said, would benefit 3 crore farmers, mostly small and marginal. 

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