Mudra Loan EMI Calculator
Instantly calculate your monthly EMI, total interest & full repayment schedule for Pradhan Mantri Mudra Yojana loans.
💡 Mudra loan rates vary by bank and borrower profile. Enter your bank's quoted rate.
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What is a Mudra Loan? A Complete Guide
The Mudra Loan, formally known as the Pradhan Mantri Mudra Yojana (PMMY), is a flagship government-backed credit scheme designed to fund the growth of India's micro and small enterprises. Launched to democratize access to institutional credit, PMMY enables small business owners, self-employed individuals, artisans, shopkeepers, and micro-entrepreneurs to borrow from scheduled commercial banks, NBFCs, microfinance institutions (MFIs), and Regional Rural Banks (RRBs) — without pledging any collateral.
The scheme is administered through MUDRA (Micro Units Development & Refinance Agency Ltd.), a subsidiary of SIDBI. Unlike traditional bank loans, Mudra loans are specifically aimed at the "missing middle" — borrowers too small for formal credit but too large for moneylenders. The result is a powerful financial inclusion tool that has disbursed crores of rupees to millions of Indian entrepreneurs.
Before you approach any lender, using our Mudra Loan Calculator helps you understand exactly how much you will repay each month, how much of that goes toward interest, and what your full repayment journey looks like. This makes loan decisions smarter and reduces financial stress. You can also explore our MSME Loan EMI Calculator and Business Loan EMI Calculator for additional scenarios.
The Three Mudra Loan Categories: Shishu, Kishore & Tarun
PMMY divides loans into three categories based on the stage of business development and funding requirement. Each category has a defined loan ceiling:
🌱 Shishu
For businesses in the seed or early stage. Ideal for micro-units just starting out — street vendors, small artisans, and home-based workers.
📈 Kishore
For established micro businesses needing working capital or equipment upgrades. Targets small shops, small-scale manufacturers, and service providers.
🚀 Tarun
For growing businesses ready to scale. Covers medium micro-enterprises looking to expand operations, add employees, or invest in new assets.
📌 Important: Mudra loans are collateral-free and there is no processing fee from MUDRA. Individual lenders may charge their own processing fees. Always compare offers from at least 2–3 lenders. Read our guide on Flat vs Reducing Rate to understand which interest calculation method your lender uses.
How Our Mudra Loan Calculator Works
Our Mudra Loan EMI Calculator uses the industry-standard Reducing Balance Method (EMI formula) — the same method used by all banks and RBI-regulated lenders for term loans. Here is the formula:
P = Principal Loan Amount
r = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
n = Loan Tenure in Months
The calculator processes these inputs instantly and generates your Monthly EMI, Total Interest Payable, Total Amount Payable, a visual principal vs. interest breakdown, and a complete month-by-month amortization schedule so you always know where you stand. For deeper understanding, also check our detailed Loan EMI Calculator and Personal Loan EMI Calculator.
Step-by-Step: How to Use the Mudra Loan Calculator
- Step 1 – Choose your category: Select Shishu, Kishore, or Tarun based on your loan requirement. The slider range adjusts automatically.
- Step 2 – Set loan amount: Use the slider or type in the amount you wish to borrow within the category limit.
- Step 3 – Enter interest rate: Input the interest rate your bank has quoted. If unsure, start with 10% as a common benchmark.
- Step 4 – Select tenure: Choose your repayment period — from 6 months to 60 months (5 years).
- Step 5 – Calculate: Hit the button to instantly see your EMI, total interest, and amortization table.
- Step 6 – Compare scenarios: Change the rate or tenure to compare how different lender quotes affect your repayment.
Mudra Loan Eligibility Criteria
One of the biggest advantages of PMMY is its broad eligibility. Almost any Indian citizen running a non-farm income-generating activity can apply. Here is who qualifies:
- Indian citizen aged 18 years or above
- Involved in non-farm business activity (manufacturing, trading, or services)
- Micro or small enterprise — sole proprietors, partnerships, or private limited companies
- Artisans, weavers, self-employed professionals, shopkeepers, food vendors
- Women entrepreneurs (may receive preferential interest rates from many lenders)
- SC/ST/OBC category borrowers (may qualify for additional subsidies or priority lending)
- No existing default on loans with any scheduled bank or NBFC
- Business activity must be income-generating and creditworthy as assessed by the lender
Women entrepreneurs specifically benefit from dedicated schemes — explore our Mahila Personal Loan EMI Calculator and Women Personal Loan Calculator for additional tools.
Documents Required for Mudra Loan
Documentation requirements vary slightly by lender and category, but the following are commonly required across most banks and NBFCs:
💡 Tip: Having your Aadhaar-linked bank account active and KYC-compliant significantly speeds up the Mudra loan process. Always verify specific document requirements with your chosen lender.
Mudra Loan Interest Rates — What You Need to Know
The Government of India does not fix a uniform interest rate for Mudra loans. Each lending institution — commercial banks, RRBs, MFIs, and NBFCs — sets its own rate based on their cost of funds, the borrower's credit profile, business type, and loan category. This is an important distinction many borrowers miss.
Typically, interest rates for PMMY loans range from approximately 8% to 14% per annum for bank borrowers, and may be higher for MFI borrowers depending on their structure. Before finalizing any loan, always ask your lender for the Annual Percentage Rate (APR), which includes all fees. Understanding whether your lender uses a flat rate or reducing balance rate can save you lakhs — read our Flat vs Reducing Rate guide to understand the difference.
For smart strategies to lower your interest burden, read our article on Loan Interest Bachane ke Smart Tareeke and the 5 Smart Loan Hacks to Save Lakhs. Also be cautious of predatory lenders — learn how to identify fake loan apps before you apply anywhere.