In the midst of the Corona crisis, the central government has announced a rebate on the interest rate of Shishu Loan to rebuild small businesses or start new businesses. The Shishu Loan Scheme is part of the Modi government’s ambitious Mudra Yojana.
If you have taken a baby loan from the bank and are thinking of taking it then you will benefit from the new announcement of the Modi government. Loans up to 50 thousand rupees are available under Shishu Loan. Its purpose is to help those doing business on a small scale.
In fact, on Thursday, Finance Minister Nirmala Sitharaman announced that a two percent discount will be given on interest on Mudra Shishu Loan. This discount will be for the next 12 months. The effect of this will be that 1500 crore will be saved by the borrowers, while the government will pay this money. Currently, the interest rate on the Shishu loan is 10 to 11 percent per annum. Which will now get a two percent discount.
The government says that about 3 crore people are going to get its benefits. Under the Mudra Scheme, the government will give a rebate of up to 2 percent in interest for 12 months to those who take infant loans. The lowest loan category under the Mudra scheme is that of Shishu Yojana.
It is worth noting that under the Pradhan Mantri Mudra Yojana, the youth of the country are provided loans from banks without any guarantee to start their business. The Mudra scheme was launched on 8 April 2015. Under the Mudra scheme, loans ranging from 50 thousand to 10 lakh are available.
Three types of loans are given in the Mudra scheme. Loans up to 50 thousand are given under the Shishu Yojana, loans ranging from 50 thousand to 5 lakh under the Kishore scheme and loans ranging from 5 lakh to 10 lakh under Tarun Yojana.
What is the objective of the government?
The aim of the government’s Mudra scheme is that the youth of the country can start their business towards becoming entrepreneurs, as well as more employment can be available through it. Loans are provided without any guarantee in the Mudra scheme. There is also no provision for processing charges for the loan.
Who can take a loan?
Any citizen of the country who wants to start his business can apply under the scheme. For details of the scheme, you can visit the link http://www.mudra.org.in/. Almost all the banks of the country have been authorized by the government.