Lok Sabha Question No. 700 (UNSTARRED), answered on 2022-02-07
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. 700

ANSWERED ON FEBRUARY 07, 2022/ Magha 18, 1943 (SAKA)

## Moratorium on MUDRA Loans

## 700. SHRI BALASHOWRY VALLABHANENI:

Will the Minister of FINANCE be pleased to state:.

- (a)   the current portfolio of Sishu, Kishore and Tarun categories of the MUDRA loans;
- (b)   whether moratorium on MUDRA loans has been given, 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, if so, the details thereof;
- (d)  whether the Ministry considers extending moratorium and extending interest subvention on Kishore and Tarun loans also and if so, the details thereof; 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 31.12.2021, over 32.53 crore loans involving a sanctioned amount of Rs. 17.32 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)   |
|-----------------|------------------------|------------------------------------|
| 28,16,11,334    | 7,39,596.56            | Shishu                             |
| 3,73,32,148     | 5,84,540.78            | Kishore                            |
| 63,94,426       | 4,08,513.13            | Tarun                              |
| 32,53,37,908    | 17,32,650.47           | TOTAL                              |

## 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 only 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.

As on 21.01.2022, more than Rs. 613.80 crore have been disbursed by Small Industries Development Bank of India (SIDBI) to MLIs for onward credit of subvention amount into accounts of eligible borrowers.

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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