Who is eligible for Mudra loan?

Any Indian citizen with a viable non-farm income-generating activity — small manufacturers, traders, service providers, artisans. No minimum turnover required for Shishu.

Is collateral required?

No — Mudra loans are collateral-free under the Credit Guarantee Fund for Micro Units (CGFMU). Only business assets purchased with the loan are hypothecated.

What's the interest rate?

PSU banks: 9-11%. Private banks & NBFCs: 10-14%. Rates depend on the borrower's profile — RBI does not cap Mudra rates.

Yes — visit udyamimitra.in or the lender's portal (SBI, PNB, Bank of Baroda all offer online Mudra). Approval typically takes 7-15 days after document submission.

Who is eligible for Mudra loan?

Any Indian citizen with a viable non-farm income-generating activity — small manufacturers, traders, service providers, artisans. No minimum turnover required for Shishu.

Is collateral required?

No — Mudra loans are collateral-free under the Credit Guarantee Fund for Micro Units (CGFMU). Only business assets purchased with the loan are hypothecated.

What's the interest rate?

PSU banks: 9-11%. Private banks & NBFCs: 10-14%. Rates depend on the borrower's profile — RBI does not cap Mudra rates.

Yes — visit udyamimitra.in or the lender's portal (SBI, PNB, Bank of Baroda all offer online Mudra). Approval typically takes 7-15 days after document submission.

Finance

Mudra Loan EMI Calculator

Name: Mudra Loan EMI Calculator
Availability: InStock
Author: CalculatorDesk

EMI calculator for PMMY Shishu, Kishore and Tarun Mudra loans.

By CalculatorDeskUpdated 21 Aug 2026

Loan amount

₹

₹ 0₹ 20,00,000

Interest rate

1%20%

Tenure

yrs

1 yrs7 yrs

Monthly EMI

₹10,747

Principal: ₹5,00,000
Total interest: ₹1,44,817
Total payment: ₹6,44,817

Principal vs interest

Principal77.5%
Interest22.5%

What is Mudra Loan EMI?

The Pradhan Mantri Mudra Yojana (PMMY) is a Govt of India scheme that offers collateral-free loans to non-farm micro enterprises. Three categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh) and Tarun (₹5 lakh to ₹20 lakh — raised to ₹20L in Budget 2024).

Formula

The standard amortizing EMI formula:

EMI = P × r × (1 + r)^n / [(1 + r)^n − 1]

P = loan principal
r = monthly interest rate (annual ÷ 12 ÷ 100)
n = tenure in months

How to use this calculator

Enter the loan amount (up to ₹20 lakh under Tarun), the bank's rate (usually 9-12% p.a.) and tenure (3-7 years). Mudra loans have no processing fee for Shishu category.