Calculate your Mudra loan EMI in seconds
Three sliders — amount, rate, tenure. Get monthly EMI, total interest, and a full amortisation schedule. No sign-up needed.
Calculate Your EMI
KishoreMonthly EMI
₹3,226.72
The math, demystified
Banks use the standard reducing-balance formula:
- P
Principal amount
- r
Monthly rate (APR / 12 / 100)
- n
Total months
Worked example
Six top lenders, side by side
Indicative starting rates. The cheapest is highlighted. Confirm with your bank before applying.
- SBI8.5%8.5% – 11% · Public
- PNB8.7%8.7% – 11% · Public
- BOB9.0%9% – 11.5% · Public
- HDFC9.5%9.5% – 12% · Private
- ICICI10.0%10% – 12% · Private
- Axis10.5%10.5% – 12% · Private
Indicative starting rates for FY 2025–26. Need processing fees + 9-bank coverage? Use the Interest Rate Calculator.
Pick a tier — see your EMI band
Shishu
Up to ₹50,000For micro-enterprises just starting. No collateral required.
Kishore
₹50,001 – ₹5,00,000For growing small businesses. Banks may need basic project report.
Tarun
₹5,00,001 – ₹10,00,000For established MSMEs scaling up. Detailed project report required.
Tarun Plus
₹10,00,001 – ₹20,00,000For businesses needing higher capital. Comprehensive documentation expected.
Five ways to cut your EMI
Choose a longer tenure
Extending 36 → 60 months can reduce monthly EMI by 25–30%, but increases total interest paid.
Negotiate a lower rate
Good CIBIL (750+), banking relationship, or strong financials? Even a 0.5% drop saves thousands.
Borrow only what you need
Don't over-borrow. Find the sweet spot between funding need and comfortable repayment.
Compare multiple banks
Rates vary significantly. Shortlist via the table above, apply to 2–3 lenders for the best offer.
Make prepayments
Whenever your business has surplus, make partial prepayments to cut principal and future interest.
Keep going — two more useful tools
EMI questions
What is the EMI formula used for Mudra loan calculations?
The standard EMI formula is: EMI = P x r x (1+r)^n / [(1+r)^n - 1], where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12 and then by 100), and n is the total number of monthly instalments. This reducing-balance method is used by all banks for PMMY Mudra loans.
What is the typical interest rate for Mudra loans in India?
Mudra loan interest rates typically range from 8.5% to 12% per annum depending on the bank, loan category, and borrower profile. Public sector banks like SBI and PNB generally offer rates between 8.5% and 11%, while private banks like HDFC and ICICI may charge 10% to 12%. The rates are not fixed by RBI and vary by lender.
What is the maximum tenure for a Mudra loan?
The maximum repayment tenure for Mudra loans is generally up to 5 years (60 months) for Shishu loans and up to 7 years (84 months) for Kishore, Tarun, and Tarun Plus loans. Some banks may offer shorter tenures depending on the loan amount and purpose. A longer tenure reduces your monthly EMI but increases total interest paid.
Is there any processing fee charged on Mudra loans?
Processing fees for Mudra loans vary by bank and category. Shishu loans (up to Rs 50,000) typically have zero processing fees as mandated by the government. For Kishore and Tarun loans, banks may charge 0.5% to 1% of the loan amount as processing fee. Some banks waive this fee during special campaigns.
Can I prepay or foreclose my Mudra loan without penalty?
Yes, most banks allow prepayment or foreclosure of Mudra loans without any penalty, especially for loans with floating interest rates. RBI guidelines prohibit prepayment penalties on floating-rate loans. For fixed-rate Mudra loans, some banks may charge a nominal foreclosure fee of 1-2%. Always confirm with your specific lender before prepaying.
How does the Mudra loan category affect my EMI?
The Mudra category (Shishu, Kishore, Tarun, Tarun Plus) primarily determines the loan amount range, not the interest rate directly. However, Shishu loans (up to Rs 50,000) often get preferential rates and shorter tenures, resulting in smaller EMIs. Larger loans under Tarun Plus (up to Rs 20 lakh) will naturally have higher EMIs, but the per-month cost depends on the interest rate and tenure you choose.
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