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Mudra Loan EMI Calculator

Initiated by the Government of India, the Micro Units Development and Refinance Agency (MUDRA) loan is a funding scheme developed under the Pradhan Mantri MUDRA Yojana (PMMY). Since 2015, the Mudra loan initiative aims to promote entrepreneurial and business development within the country. The scheme services non-farm and small enterprises that are engaged in manufacturing, service sectors, and trading.

As part of the Mudra scheme, applicants can avail a large sum of up to ₹10 Lakhs. The repayment tenor ranges from 12 months and 5 years to fulfil the loan obligation. The scheme offers a good opportunity for aspiring as well as established entrepreneurs by funding their business pursuits. Read on to know more about the Mudra scheme and its EMI calculator. 

 

EMI Calculator for Mudra Loan 

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,

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

is the rate of interest rate levied on the principal amount (monthly): The interest rate on depends on the issuing bank’s policies

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.

Key Advantages of the MUDRA Scheme 

The MUDRA scheme carries several key advantages. Some of the most notable aspects of this scheme include:

  • Being an ideal funding mechanism for micro as well as small enterprises

  • Promotes development among the income-generating business sector

  • Does not attract processing fees/charges

  • Credit availed through the scheme can be used to serve long-term loans and overdraft facilities

  • Does not include complex lending conditions

  • Businesses do not have to abide by a minimum loan required to avail the scheme

Types of MUDRA Loans

The Mudra loan is categorised into three sub-types. As part of the scheme, you can avail the following types of Mudra loans:

Shishu: The Shishu loan is driven towards small sector businesses and upto ₹50,000 is offered through this category

Kishore: The Kishore loans are essentially developed for mid-level businesses. As part of this category, beneficiaries can avail a loan between the range of ₹50,001 and ₹5,00,000.

Tarun: The Tarun loans are a good fit for budding entrepreneurs looking to set up a business. It also helps established enterprises promote their business and develop it further. Under this category, beneficiaries can avail a sum between the range of ₹5 lakh to ₹10 lakh.

To Conclude

The Mudra loan is an exceptionally great opportunity for aspiring and already established entrepreneurs to get funding to develop and promote their business. The non-collateral requirement and zero processing fees further make the scheme highly accommodating among all entrepreneurial segments. Visit Finserv MARKETS to stay updated on the MUDRA scheme.