MUDRA Loan EMI Calculator

MUDRA loans under the Pradhan Mantri MUDRA Yojana offer collateral-free funding of up to ₹20 Lakh across four categories - Shishu, Kishore, Tarun and Tarun Plus. Before you apply, use this MUDRA loan EMI calculator to check what it will cost you: enter the amount, your lender's rate and the tenure to see your EMI, total interest and repayment schedule.

A MUDRA loan EMI calculator is a free tool that tells you the fixed monthly instalment on a loan taken under the Pradhan Mantri MUDRA Yojana.

It helps at two stages. Before you go to the bank, it shows how much you can realistically borrow without straining your cash flow. Later, when two lenders quote different rates, it shows what that difference means in rupees every month.

The MUDRA loan calculator gives you an estimate. Your lender fixes the final rate after looking at your business and credit history.

It takes less than a minute:

1. Enter the loan amount, the annual interest rate and the tenure. You can switch the tenure between months and years.
2. Read your EMI, the total interest and the total amount you'll repay.
3. Open the repayment schedule to see how each month's EMI is split, and download it if you need a copy.

Change any number and the results update straight away, so you can try a few options before settling on one.

You can calculate your Equated Monthly Instalment (EMI) manually using a standard formula. This is the same method used by a Pradhan Mantri MUDRA Yojana EMI calculator.

EMI = P × R × (1 + R)^N / [(1 + R)^N – 1]

Where:

• P = Principal loan amount
  

• R = Monthly interest rate (annual rate ÷ 12 ÷ 100)
  

• N = Loan tenure in months

P is the loan amount and N is the tenure in months. R is the monthly interest rate, not the annual one: divide the annual rate by 12, then by 100. So 12% a year becomes 1% a month, or 0.01. This is where most hand calculations go wrong – put in 0.12 and the EMI comes out far too high.

Worked example: ₹1,00,000 at 12% p.a. for 36 months. Here P = 1,00,000, R = 0.01 and N = 36, which gives an EMI of ₹3,321. Over 36 months you repay ₹1,19,556, so ₹19,556 of that is interest.

Your actual MUDRA loan interest rate per month depends on the lender and your business profile.

Note: The applicable MUDRA Loan interest rate varies across lenders and depends on your business profile, credit history, and funding requirement, and factors such as your CIBIL MSME Rank, where applicable.

The Pradhan Mantri MUDRA Yojana (PMMY) offers financing to small businesses in stages, through four loan categories based on a business's growth phase and funding needs. Knowing the difference between Shishu, Kishor, Tarun, and Tarun Plus can help you identify the right fit for starting, running, or scaling your enterprise.

These categories also play an important role in determining MUDRA Loan Eligibility, as lenders assess the applicant's business stage, funding requirement, and repayment capacity before approving a loan.

Shishu Category

• Loan limit: Up to ₹50,000
  

• Target audience: Seed-stage micro-entrepreneurs and individuals starting very small ventures
  

• Primary purpose: Covers basic setup costs and working capital for entry-level operations such as street vending, local artisan work, or micro repair services
  

• Key feature: Designed for accessible credit without requiring a prior credit history
  

Kishor Category

• Loan limit: Above ₹50,000 and up to ₹5 lakh
  

• Target audience: Existing micro-enterprises that have already started operating and need capital to stabilise or grow
  

• Primary purpose: Purchasing small machinery, managing day-to-day inventory, working capital, or modest business expansion
  

Tarun Category

• Loan limit: Above ₹5 lakh and up to ₹10 lakh
  

• Target audience: Established small businesses preparing to scale up operations
  

• Primary purpose: Investment in advanced machinery, facility upgrades, hiring, or expanding market reach
  

Tarun Plus Category

• Loan limit: Above ₹10 lakh and up to ₹20 lakh
  

• Target audience: Entrepreneurs who have previously availed and successfully repaid a loan under the standard Tarun category
  

• Primary purpose: Advanced scaling, high-capacity machinery acquisition, and further enterprise expansion
  

• Key feature: Backed by guarantee coverage under the Credit Guarantee Fund for Micro Units (CGFMU), so these loans remain collateral-free despite the higher ticket size
  

Disclaimer: The details provided above regarding Pradhan Mantri MUDRA Yojana (PMMY) loan categories, coverage limits, and eligibility criteria are for informational and indicative purposes only. Loan approval, exact interest rates, tenure, and sanction limits are at the sole discretion of the respective lending institution, based on individual applicant evaluation and applicable regulatory guidelines. Terms and government policies are subject to change without prior notice. 

• Plan your repayments – Know your EMI before you sign anything, and check it against what your business earns in a normal month.

• Compare scenarios – Try ₹3 Lakh over 3 years, then over 5. Put two lenders' rates side by side. Each check takes seconds.

• No documents needed – No login, no paperwork and no effect on your credit score. Use it as often as you like.

• Avoid over-borrowing – It's tempting to take the maximum you qualify for. The calculator shows what that extra amount really costs you each month.

Disclaimer:- Reference to all terms and conditions necessarily refers to partner terms. This includes pre-approved offers and loan processing time, amongst other conditions.