Modi government is giving loans up to Rs 50,000 without any guarantee for business, it is getting 2 percent interest assistance.

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The PMMY cabinet has approved a 2 percent interest subvention to the borrowers in the infant loan category under the Pradhan Mantri Mudra Yojana.

PTI Many major decisions have been taken in the Union Cabinet meeting on Wednesday. Union Minister Prakash Javadekar has given information about the decisions of the cabinet in a press conference. Javadekar said that it has been decided by the government to provide 2 percent interest in the interest to the beneficiaries who take Shishu loan under the Pradhan Mantri Mudra Yojana (PMMY). In the Shishu category of Pradhan Mantri Mudra Yojana, loans up to Rs 50,000 are given to the beneficiaries without any guarantee.

Information and Broadcasting Minister Prakash Javadekar told in the press conference that the Union Cabinet has approved the grant of a 2 percent interest subsidy under the Pradhan Mantri Mudra Yojana to the borrowers in the infant loan category. He informed that the eligible beneficiaries will get this interest subsidy for 12 months on the outstanding loan till 31 March 2020.

Significantly, Prime Minister Mudra Yojana was launched on 8 April 2015 by Prime Minister Narendra Modi. Loans up to Rs 10 lakh are given to small and micro enterprises under this scheme. This government scheme is popularly known as Mudra Loan. The loans are provided by commercial banks, regional rural banks, small-scale lending institutions (MFIs), and non-banking financial companies.

Apart from this, the cabinet has taken several decisions on Wednesday. These include giving cooperative banks under RBI supervision. The cabinet has decided to bring cooperative banks and multi-state cooperative banks under the supervision of the Reserve Bank. Javadekar said in the press conference, “This step will give depositors confidence of their rupee security. The government will soon bring an ordinance in this regard. There are 1,482 urban cooperative banks and around 58 multi-state cooperative banks in the country with which 8.6 crore customers are connected. ‘

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