The Mudra loan EMI calculator below reveals what you repay monthly on credit taken under the Pradhan Mantri Mudra Yojana, the central scheme for small, non farm enterprises. Enter the amount you are applying for, the rate quoted by your bank and the repayment years. The default is ₹5 lakh repaid over 5 years at 10%.
Mudra loans are given by banks, small finance banks, NBFCs and microfinance lenders, not by the government directly. The scheme sets the categories and the guarantee cover; each lender sets its own rate within RBI guidelines.
At a glance
- ShishuUp to ₹50,000
- KishoreAbove ₹50,000 up to ₹5 lakh
- TarunAbove ₹5 lakh up to ₹10 lakh
- Tarun PlusAbove ₹10 lakh up to ₹20 lakh, for past Tarun borrowers who repaid
- Example₹5 lakh at 10% for 5 years: EMI ₹10,624
- CollateralNot required; loans are covered by a credit guarantee
How the Mudra loan EMI calculator works
A Mudra term loan is repaid in equal monthly instalments like any reducing balance loan. Five lakh over five years at 10% needs ₹10,624 each month and costs ₹1,37,411 in interest. A ₹50,000 Shishu loan at 11% for 3 years costs ₹1,637 a month. Ten lakh under Tarun, five years at 10%, means ₹21,247 monthly.
Some Mudra loans are given as working capital limits or overdrafts rather than term loans. There you pay only on what is drawn, and the overdraft interest calculator fits that case.
Mudra loan categories and typical use
| Category | Loan size | Typical use |
|---|---|---|
| Shishu | Up to ₹50,000 | Starting a small trade, a handcart, tools, first stock |
| Kishore | ₹50,000 to ₹5 lakh | Expanding a shop, buying equipment, a small vehicle for business |
| Tarun | ₹5 lakh to ₹10 lakh | Growing an established unit |
| Tarun Plus | ₹10 lakh to ₹20 lakh | Further growth after repaying a Tarun loan |
Eligible activities include manufacturing, trading, services and allied farm activities such as dairy and poultry. Pure crop farming loans are handled under separate schemes.
Mudra loan interest rate calculator: what decides your rate
There is no single Mudra rate. Each lender prices the loan based on its benchmark, your business record and the category. Public sector banks often charge less than microfinance lenders, which have higher costs of lending in small amounts. Shishu loans usually carry no processing fee at many banks. When you compare offers, run each rate through this calculator and look at the total amount payable, not only the EMI.
Applying for a Mudra loan
- Prepare a short plan: what the money buys and how the business will repay.
- Keep identity and address proof, business proof (such as Udyam registration or a shop licence), and bank statements.
- Apply at a bank branch, through the lender's app, or through the official portal listed on mudra.org.in.
- Beware of agents who charge fees to “get” a Mudra loan; the scheme does not need middlemen.
Can your business carry the EMI
Before borrowing, check that your monthly profit, after paying yourself enough to live on, covers the EMI with room for a slow month. A shop earning ₹25,000 a month in profit can manage a ₹5,000 to ₹8,000 EMI more safely than one at ₹15,000. If the numbers are tight, borrow a smaller amount or choose a longer tenure. Needs above the Mudra ceiling belong on the business loan page. Every loan type has an entry in the EMI calculator index.
Repaying on time
Mudra loans are reported to credit bureaus like any loan. Paying every EMI on time builds a credit record that makes the next, larger loan easier and cheaper; Tarun Plus exists precisely for borrowers who repaid a Tarun loan well. If a slow season is coming, tell the bank early and ask about rescheduling rather than letting an instalment bounce.
Frequently asked questions
What does ₹5 lakh under Mudra cost per month?
At 10% for 5 years, ₹10,624 a month. Your bank's rate decides the final figure.
Is there one fixed Mudra rate?
There is no fixed rate. Each lender sets it based on its benchmark and your profile. Public sector banks are often cheaper than microfinance lenders.
Is collateral needed for a Mudra loan?
No. Mudra loans are collateral free and covered by a government backed credit guarantee.
What are the Mudra loan categories?
Shishu up to ₹50,000, Kishore up to ₹5 lakh, Tarun up to ₹10 lakh and Tarun Plus up to ₹20 lakh for borrowers who repaid an earlier Tarun loan.
Who can apply for a Mudra loan?
Individuals and small enterprises in manufacturing, trading, services and allied farm activities that are not large corporates.
Can I use a Mudra loan for crop farming?
Pure crop farming is covered by other schemes. Allied activities like dairy, poultry and fisheries can qualify.