Question
Under the MUDRA Shishu scheme, what percentage of
interest subvention is provided to eligible borrowers?Solution
The MUDRA Shishu scheme, which is a part of the Micro Units Development and Refinance Agency (MUDRA) initiative in India, provides an interest subvention or interest subsidy to small borrowers. Under the MUDRA Shishu scheme, borrowers can avail loans up to Rs. 50,000 (for small business and entrepreneurial activities). Previously, the Government of India had implemented an interest subvention scheme for MUDRA Shishu loans. Under this scheme, eligible borrowers were entitled to an interest subsidy of 2% per annum on their loans.
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