<h1>Union Cabinet Approves 2% Interest Relief on Shishu Loans for Timely Payments Under MUDRA Yojana.</h1> The Union Cabinet has approved a 2% interest subvention on prompt repayment of Shishu loans under the Pradhan Mantri MUDRA Yojana for 12 months. This initiative aims to support small businesses affected by COVID-19 by incentivizing regular loan repayments. The scheme applies to loans outstanding as of March 31, 2020, and not classified as Non-Performing Assets. Implemented through SIDBI, the scheme will run from June 2020 to May 2021 for eligible borrowers. It is part of the Atma Nirbhar Bharat Abhiyan, with an estimated cost of Rs. 1,542 crore, intended to ease financial stress and support economic recovery.