What Is The Processing Fee In The Shishu And Kishore Category Of Mudra Loan

Shishu & Kishore Category Mudra Loans come with ‘NIL Processing Fees’. 

The Mudra Yojana is a collateral-free loan that can be used by individuals who need funds for business purposes, such as expansion, company formation, or establishment modernization, among other things. This credit may be used to create a new business unit or to extend an established one.

The loan is of 3 categories: 

Shishu – Loans up to Rs.50000, with the rate of interest being a minimum of 1% per month or 12% per annum. Repayment period of 1-5 years. 

Kishore - Loans from Rs.50001 up to Rs.5 lakhs. The interest rate would depend on the lender, keeping the applicant's credit history in mind in compliance with the scheme’s guidelines. Repayment duration depends on the bank's discretion but not to exceed 5 years. 

Tarun - Loans from Rs.5 lakhs up to Rs.10 lakhs. The interest rate would depend on the lender, keeping the applicant's credit history in mind in compliance with the scheme’s guidelines. Repayment duration depends on the bank's discretion but not to exceed 5 years.

Here, the Shishu and Kishore category loans with nil processing fees. Tarun category loans will charge 0.5% of the loan amount as processing fees.