Year | EMI | Principal | Interest | Balance |
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The Mudra loan EMI calculator is an important part of the Mudra loan scheme. It is essential to use the Mudra loan EMI calculator and estimate your monthly obligation to service the loan. To calculate the EMI, applicants must possess three basic loan details, i.e. the loan amount, interest rate, and repayment tenor.
You can use this formula to calculate the EMI on your Mudra loan interest rate:
EMI = [P x R x (1+R) ^ N]/[(1+R) ^ (N-1)]
where,
P is the total loan amount or Principal loan amount: You must enter the expected loan amount as per your loan category, namely Kishore, Shishu, or Tarun
R is the rate of interest rate levied on the principal amount (monthly): The interest rate on depends on the issuing bank’s policies
N is the loan repayment tenor (in months): Mudra loans have a repayment tenor of up to 5 years (60 months)
Remember, the applicable rate of interest varies from one bank to another. It essentially depends on the profile of the business and its requirements.