What is the interest rate for Mudra Loans?

The rate of interest on a mudra loan varies according to the following categories:

• Shishu: The rate of interest is 12% annually or 1% per month for this category of mudra loan.
• Kishor: The interest rate on the mudra loan in this category is determined by the bank and it also depends on the creditworthiness of the borrower.
• Tarun: The interest rate is again determined by the bank and it also depends on the creditworthiness of the borrower.

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