Indian government considers 3 to 6 months MSME loan moratorium

Business Mar 30, 2026

With the Iran war shaking up economies, the Indian government is thinking about letting MSMEs (that's micro, small, and medium enterprises) take a break from loan repayments for three to six months.
If this goes through, these businesses could skip EMIs for a while without being called defaulters, a big relief when cash is tight.

Price and supply shocks squeeze MSMEs

Thanks to the ongoing conflict, prices for essentials have shot up and supply chains are all over the place. Small businesses are struggling to keep things running.
The government hopes this moratorium will give them some breathing room so they can focus on staying afloat instead of worrying about overdue loans.