Lok Sabha Question No. 3463 (UNSTARRED), answered on 2021-12-20
Subject: Moratorium on MUDRA Loans
Ministry: FINANCE
Asked by: Balashowry Vallabbhaneni

## Government of India Ministry of Finance Department of Financial services

## LOK SABHA UN-STARRED QUESTION No. 3463

ANSWERED ON DECEMBER 20, 2021/ Agrahayana 29, 1943 (SAKA)

## Moratorium on MUDRA Loans

3463. SHRI BALASHOWRY VALLABHANENI:

Will the Minister of FINANCE be pleased to state:

- (a)   the current portfolio of MUDRA's Sishu, Kishore and Tarun categories;
- (b)   whether moratorium on MUDRA loans has been given and if so, the period of moratorium;
- (c)   whether it is true that interest subvention has been given only to Sishu loans and not for Kishore and Tarun loans,
- (d)  if so, whether the Ministry will consider extending moratorium and extending interest subvention on Kishore and Tarun loans as well; and
- (e) if not, the reasons therefor?

Minister of State in the Ministry of Finance

(DR. BHAGWAT KARAD)

- (a)        Under the Pradhan Mantri Mudra Yojana (PMMY), institutional credit up to Rs. 10 lakh is provided by Member Lending Institutions (MLIs) to micro/small business units for income generating activities in manufacturing, trading, services sectors and also for activities allied to agriculture. As per data uploaded by Member Lending Institutions (MLIs) on Mudra portal, as on 26.11.2021, over 32.11 crore loans involving a sanctioned amount of Rs. 17.00 lakh crore have been extended under PMMY, since its inception in April, 2015.  The details of the loans extended under PMMY across categories, viz. Shishu (loans up to Rs. 50,000), Kishore (loans from Rs. 50,001 to Rs. 5 lakh) and Tarun (loans from Rs. 5 lakh to Rs. 10 lakh) are tabulated below:-

| Loan Category   | No. of Loan Accounts   | Sanctioned Amount (in Rs. Crore)   |
|-----------------|------------------------|------------------------------------|
| Shishu          | 27,87,26,627           | 7,30,196.55                        |
| Kishore         | 3,61,76,605            | 5,69,497.53                        |
| Tarun           | 62,89,717              | 4,01,186.12                        |
| TOTAL           | 32,11,92,949           | 17,00,880.20                       |

## ANSWER

(b)      Reserve  Bank  of  India  (RBI), vide circulars  dated  27.03.2020  and  23.05.2020  on  COVID-19 Regulatory Package permitted all lending institutions to grant a moratorium of six months on payment of all  instalments  (including  equated  monthly  instalments  or  EMIs)  falling  due  between  01.03.2020  and 31.08.2020, in respect of all term loans outstanding as 01.03.2020.  In respect of working capital facilities sanctioned in the form of cash credit/overdraft ('CC/OD'), lending institutions were permitted to defer the recovery  of  interest  applied  in  respect  of  all  such  facilities,  during  the  period  from  01.03.2020  to 31.08.2020.  These guidelines were also applicable to Shishu, Kishore and Tarun categories of PMMY loans as well.

(c) to (e)    As part of Atma Nirbhar Bharat Abhiyan, Government of India launched a Scheme on Interest Subvention of 2% on prompt repayment of Shishu loans under PMMY for a period of 12 months to eligible borrowers.  The Scheme was formulated to provide support to small borrowers to enable them to service their loans and restart their businesses post-lockdown.

For  borrowers,  who  were  allowed  a  moratorium  by  their  respective  lenders,  as  permitted  by Reserve Bank of India (RBI) under the 'COVID 19 Regulatory Package', the Scheme commenced post completion of the moratorium period till that period of 12 months i.e. from September 01, 2020 till August 31,  2021.  For  other  borrowers,  the  scheme  commenced  w.e.f.  June  01,  2020  till  May  31,  2021.  The Scheme was operational up to 31.08.2021.

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