CURRENT AFFAIRS

Detailed explanation-1: -Eligible MSMEs can avail interest relief of up to 2% annually on outstanding term loans or working capital loans. The scheme covers all term loans and working capital loans offered to MSMEs, up to an amount of Rs. 1 crore.

Detailed explanation-2: -Eligibility of Interest Subvention Scheme MSMEs having a valid GSTN. However, the MSMEs which are not eligible to obtain GST need not have a GSTN, and they can apply for this scheme by submitting their Permanent Account Number (PAN), or the concerned bank must categorise their loan account as MSME.

Detailed explanation-3: -To ensure that the farmers have to pay a minimal interest rate to the bank, the Government of India introduced Interest Subvention Scheme (ISS), now renamed as Modified Interest Subvention Scheme (MISS), to provide short term credit to farmers at subsidized interest rates.

Detailed explanation-4: -To provide relief to farmers affected by natural calamities, Interest Subvention of 2% has been made available to banks for the first year on restructured amount of crop loans. Such restructured loans will attract normal rate of interest from the second year onwards as per the policy laid down by the RBI.