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.
Firing a second salvo to limit COVID fallout, Finance Minister Nirmala Sitharaman on Thursday announced a Rs 3.16 lakh crore package comprising free foodgrains for migrant workers, Rs 2 lakh crore concessional credit to farmers and working capital for street vendors in a bid to help those hit hard by the nationwide lockdown.
Together with the Wednesday's Rs 5.94 lakh crore package that mostly comprised off-budget credit line and support to small businesses, shadow banks and electricity distribution companies, the government has unveiled over Rs 9 lakh crore plans out of the Rs 20 lakh crore package announced by Prime Minister Narendra Modi to heal Asia's third-largest economy that was seen hurtling towards its first full-year contraction in four decades.
Sitharaman said each of the eight crore migrant workers, who had to leave their workplaces after imposition of the lockdown on March 25, will get 5 kg grains and 1 kg pulses free for two months.
Also, 50 lakh street vendors who were rendered jobless as the government ordered stay-at-home would be given a working capital loan of Rs 10,000 each to restart businesses.
For farmers, she announced a Rs 2 lakh crore concessional credit through Kisan Credits Cards, benefiting as many as 2.5 crore farmers. Besides, to meet post-Rabi crop and current Kharif crop requirement of farmers in May and June, the National Bank for Agriculture and Rural Development (NABARD) will provide Rs 30,000 crore additional emergency working capital funding to rural cooperative banks and regional rural banks.