Mudra Loan EMI Calculator
Find your monthly EMI, total interest and yearly repayment schedule for Shishu, Kishore, Tarun and Tarun Plus loans. Results are indicative; your bank’s figures may differ.
| Year | Principal (₹) | Interest (₹) | Balance (₹) |
|---|
This Mudra loan EMI calculator shows your monthly instalment, total interest and year-by-year repayment for any Pradhan Mantri Mudra Yojana (PMMY) loan. Enter the amount, rate and tenure above, or tap a Shishu, Kishore, Tarun or Tarun Plus preset to fill the amount.
How to Use the Mudra Loan EMI Calculator
- Enter the loan amountType the amount you plan to borrow, or pick a Mudra category preset.
- Add the interest rateUse the rate in your bank’s sanction letter. If you are still comparing banks, start with 10.5%.
- Set the tenureEnter the repayment period in years. Most Mudra loans run 3 to 5 years.
- Read your resultCheck the monthly EMI, total interest and yearly table, then print it for your records.
Mudra Loan Categories and Limits
PMMY loans come in four categories. The category depends only on the amount you borrow:
| Category | Loan amount | Suited for |
|---|---|---|
| Shishu | Up to ₹50,000 | New micro units, vendors and home businesses |
| Kishore | ₹50,001 to ₹5 lakh | Small shops and units ready to expand |
| Tarun | ₹5 lakh to ₹10 lakh | Established micro enterprises |
| Tarun Plus | ₹10 lakh to ₹20 lakh | Borrowers who fully repaid an earlier Tarun loan |
Furthermore, Mudra loans need no collateral. However, banks still check your KYC, business plan and repayment capacity, so keep a project report ready. You can build one quickly with our free project report maker. Our business loan scheme guides cover eligibility and documents in detail. You can also read the official scheme details on the MUDRA website.
Sample Mudra Loan EMIs at 10.5%
The table below shows sample EMIs at a 10.5% annual rate. As a result, you can see how tenure changes both the monthly payment and the total interest.
| Loan amount | EMI (3 years) | EMI (5 years) | EMI (7 years) | Interest over 5 years |
|---|---|---|---|---|
| ₹50,000 | ₹1,625 | ₹1,075 | ₹843 | ₹14,482 |
| ₹5,00,000 | ₹16,251 | ₹10,747 | ₹8,430 | ₹1,44,817 |
| ₹10,00,000 | ₹32,502 | ₹21,494 | ₹16,861 | ₹2,89,634 |
| ₹20,00,000 | ₹65,005 | ₹42,988 | ₹33,721 | ₹5,79,268 |
How the EMI Is Calculated
The calculator uses the standard reducing-balance formula that banks use for term loans:
P = loan amount, r = monthly rate (annual rate ÷ 12 ÷ 100), n = number of months
Worked example
Take a ₹5,00,000 Kishore loan at 10.5% a year for 5 years. The monthly rate is 0.875% and n is 60. Therefore, the EMI comes to about ₹10,747, and total interest comes to about ₹1,44,817 over the full tenure.
Mudra Loan Interest Rates
There is no single Mudra interest rate. Each bank sets its own rate, usually linked to its external benchmark or MCLR. Published rates at major banks mostly fall between about 9% and 12% a year. Consequently, compare at least two banks before you sign.
Rates change often. Always use the rate printed in your sanction letter, and ask about processing fees and prepayment terms.
Tips to Keep Your Mudra EMI Affordable
- Borrow only what your project report justifies; extra money only adds interest.
- Pick a tenure that keeps the EMI well within your expected monthly profit.
- Ask your bank whether part-prepayment is allowed, and prepay when cash flow is strong.
- Repay on time: a fully repaid Tarun loan makes you eligible for Tarun Plus up to ₹20 lakh.
If you qualify for PMEGP, check your subsidy with the PMEGP loan calculator, because it can cut your loan sharply. Before you apply, read our start a business guides for registration and licence steps. In addition, please read our disclaimer: all results here are indicative.
Frequently Asked Questions
How is Mudra loan EMI calculated?
Banks use the reducing-balance formula: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate and n is the number of months. This calculator applies the same formula.
What is the interest rate on a Mudra loan?
There is no fixed Mudra rate. Each bank sets its own rate, linked to its lending benchmark. Published rates at major banks mostly fall between about 9% and 12% a year.
What is the maximum Mudra loan amount?
The limit is ₹10 lakh under Tarun. Borrowers who have fully repaid an earlier Tarun loan can get up to ₹20 lakh under Tarun Plus.
Do I need collateral for a Mudra loan?
No. Mudra loans are collateral-free. The Credit Guarantee Fund for Micro Units (CGFMU) covers the lending bank instead.
Can I repay a Mudra loan early?
Many banks allow part or full prepayment, but terms differ. Check your sanction letter or ask your branch before you prepay.
Business Reports is an independent information website. We are not affiliated with, endorsed by or acting for any government department, bank, NBFC, KVIC, NABARD, SIDBI or MUDRA, and we do not provide loans or process applications. Figures are indicative; confirm details on official portals or with your bank. Read our disclaimer and advertising disclosure.