Addressing the nation on the fiscal stimulus announced by Prime Minister Narendra Modi, Finance Minister Nirmala Sithraman on May 14 extended 2 percent interest subvention under the Shishu loans of MUDRA.
"The move will benefit more than 3 crore people," Sitharaman said, adding that this would be a Rs 15,000 crore benefit.
The current outstanding amount under the Mudra-Shishu loans category is Rs 1.62 lakh crore.
Government of India will provide interest subvention of 2% for prompt payees for a period of 12 months. This will result in relief of Rs. 1,500 crore to MUDRA-Shishu loanees: Smt @nsitharaman #AatmaNirbharBharatPackage pic.twitter.com/76PqZeAykt— NSitharamanOffice (@nsitharamanoffc) May 14, 2020
The second tranche of announcements focuses on migrant workers, street vendors, small traders, self-employed people and small farmers.
Follow FM Nirmala Sitharaman's announcements here on our LIVE blog
PM Modi, on May 12, announced an economic stimulus package of Rs 20 lakh crore to shore up the economy battered by the COVID-19 outbreak, FM Sitharaman disclosed the blueprint of the mega package on May 13.
The announcements on May 13 included six measures for MSMEs, 2 for EPF, 2 for NBFCs and MFIs, 1 for discoms, 1 for contractors, 1 for real estate sector, and 3 tax measures.
The finance minister's announcements also aimed at improving the sagging morale of India's workforce, facing the brunt of a slowing economy and muted corporate earnings