Covid impact: India’s economy contracted 24% in the quarter ended June.
NEW DELHI: India will subsidise interest costs for small borrowers who had availed of a six-month loan repayment holiday to survive as the pandemic devastated cash flows, according to court documents seen by Bloomberg.
Prime Minister Narendra Modi’s government will pay the “interest on interest” on loans of as much as 20 million rupees (US$273,000) for the duration of the Reserve Bank of India-authorised moratorium that ended on Aug. 31, according to an affidavit filed by the Finance Ministry in the Supreme Court on Friday. A spokesman for the ministry declined to comment.
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