Mudra Loan Calculator
This mudra loan calculator estimates the monthly EMI and total interest on a PM Mudra Yojana (PMMY) loan, India's collateral-free credit scheme for small and micro businesses. PMMY loans span four tiers — Shishu, Kishor, Tarun and Tarun Plus — each covering a different loan-amount range, but banks set their own rate off their MCLR rather than a single government-fixed rate. Pick your tier, enter your bank's quoted rate and tenure to see your EMI breakdown.
Mudra loans are grouped into 4 tiers by loan amount — pick the one matching what you need; typical bank rates run roughly 9-12% for Shishu up to 11-20% for Tarun/Tarun Plus, but every bank sets its own rate off its MCLR.
How much you want to borrow under PMMY, within your chosen tier's range.
Mudra loans have no fixed government rate — enter the rate your bank has quoted you.
How many years you'll take to repay the loan.
Monthly EMI
Log in to save₹9,822
Your fixed monthly repayment at this rate and tenure.
How to use this mudra loan calculator
- 1Mudra category: pick the tier matching your loan amount — Shishu (up to ₹50,000), Kishor (₹50,001–₹5,00,000), Tarun (₹5,00,001–₹10,00,000) or Tarun Plus (₹10,00,001–₹20,00,000). This mainly shows the typical rate band for that tier.
- 2Loan amount: how much you're borrowing under PMMY, within your chosen tier's range.
- 3Interest rate: enter the rate your bank has actually quoted you — Mudra loans don't carry one fixed government rate, since each lender prices off its own MCLR plus a spread.
- 4Repayment tenure: how many years you'll take to repay the loan.
Understanding your results
Monthly EMI is your fixed reducing-balance repayment for the full tenure. Total interest is the extra amount you pay above the principal over the life of the loan. Total repayment adds the two together — principal plus interest — so you can see the full cost of the loan at a glance.
The formula
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r = monthly interest rate and n = tenure in monthsThis is the standard reducing-balance EMI formula: P is your loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. Each EMI is fixed, but the split between interest and principal shifts over time — early payments are interest-heavy, later ones repay more principal, since interest is always calculated on the balance still outstanding.
A worked example
A ₹3,00,000 Kishor-tier Mudra loan at 11% p.a. over 3 years (36 months) works out to a monthly EMI of about ₹9,822, with total interest of roughly ₹53,578 and a total repayment of about ₹3,53,578 over the loan term.
Things to know
Mudra loan rates are not fixed by the government — each bank and NBFC sets its own rate off its Marginal Cost of Funds based Lending Rate (MCLR) plus a spread, so quoted rates for the same tier can vary meaningfully across lenders. Kishor-tier loans can be found from roughly 8.6% p.a. at some banks, while Tarun and Tarun Plus loans often run higher, roughly 11-20% p.a., reflecting the larger ticket size and risk. Always confirm today's quoted rate with your lender rather than relying on a typical range. Tarun Plus is the newest tier, added to cover growing Mudra borrowers scaling beyond ₹10,00,000.
Frequently asked questions
Do I need collateral for a Mudra loan?+
No — PMMY loans are collateral-free by design, which is the scheme's core appeal for small and micro business owners who don't have assets to pledge.
Which Mudra category should I choose?+
Pick the tier that matches the loan amount you actually need — Shishu for very small working-capital needs, Kishor for an established small business, and Tarun or Tarun Plus for larger expansion needs. The tier mainly determines your loan-amount range, not automatically your rate.
Is the Mudra loan interest rate fixed by the government?+
No — the government sets the scheme's eligibility and collateral-free structure, but each bank prices the loan itself off its own MCLR plus a spread, so rates genuinely differ by lender. Always compare quotes from more than one bank.
Can I prepay a Mudra loan early?+
Most banks allow prepayment on Mudra loans, though some may charge a foreclosure fee on larger Tarun or Tarun Plus loans — confirm the exact terms with your lender before signing.
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