What Is A Mudra Loan?

Mudra loans are part of the Pradhan Mantri Mudra Yojana (PMMY) and are designed to support small and micro businesses in trading, services, and manufacturing. These loans can be used whether you are setting up a new venture or looking to expand your current business. Borrowers can avail up to ₹10 lakh without giving any collateral. Based on the size of the requirement, Mudra loans are divided into three categories: Shishu (up to ₹50,000), Kishor (₹50,001–₹5 lakh), and Tarun (₹5,00,001–₹10 lakh). Each stage caters to businesses at different growth levels.

Why Use A Mudra Loan EMI Calculator?

A Mudra Loan EMI Calculator is a simple online tool that helps you know your monthly repayment amount. By entering the loan amount, tenure, and interest rate, you get a clear idea of your EMI. It works like a quick financial guide, showing you how much you need to pay every month. This makes budgeting easier and avoids unexpected payment stress.

How Does It Work?

Using a Mudra Loan EMI Calculator is straightforward.

1. Enter Loan Amount: Type the amount you want to borrow (up to ₹10 lakh under Mudra loans).
2. Add Interest Rate: Enter the rate given by your bank (generally between 7.3% to 12% yearly).
3. Choose Tenure: Select the repayment duration, usually from 12 to 60 months.
4. Get Results: The calculator will display your EMI, total interest, and total repayment.

For example, a ₹2 lakh loan at 8% interest for 12 months results in an EMI of about ₹17,398. This clarity helps in checking if the loan fits within your budget.

Benefits Of Using A Mudra Loan Calculator

Here are the main reasons why this tool is useful:

• Saves Time: Get instant calculations without manual effort.
• Accurate Planning: Plan monthly spending with confidence.
• Compare Easily: Check different amounts and tenures to pick the best option.
• Stay Within Budget: Make sure your EMI is within 40–50% of your income.
• Flexible Scenarios: Adjust rates or repayment periods to see how your EMI changes.

Current Mudra Loan Interest Rates (2025)

Bank/NBFC	Interest Rate (p.a.)
Punjab National Bank	6.65% – 7.9%
UCO Bank	7.45% onwards
Union Bank of India	7.65% – 8.9%
Ziploan	8% onwards
PSB Loans in 59 Minutes	8.50% onwards
Saraswat Bank	11.65% onwards
City Union Bank	12% – 12.5%
Lendingkart Finance	1% per month onwards

These figures vary based on your business profile and loan type, so always check directly with the lender.

How To Use A Mudra Loan Calculator

Here’s a quick step-by-step guide:

• Visit A Reliable Site: Go to trusted platforms like paisabazaar.com, shriramfinance.in, or bankofbaroda.in.
• Enter Loan Details: Fill in the loan amount, interest rate, and tenure.
• Check Results: Review EMI, total interest, and repayment figure.
• Make Adjustments: Change tenure or amount until you find a comfortable EMI.

For instance, a ₹5 lakh Kishor loan at 9% for 24 months has an EMI of about ₹23,992, with a total interest of around ₹75,808.

Why It Matters In 2025

India’s small business ecosystem is growing rapidly, and Mudra loans continue to play a key role in this growth. The government has also launched a new Tarun Plus category, allowing loans up to ₹20 lakh for certain borrowers. This shows a stronger push towards entrepreneurship. The calculator makes it easier to explore these options and ensures you select a loan that does not put pressure on your finances. With no collateral and zero processing charges, Mudra loans are more accessible than ever.

Things To Keep In Mind

• Keep your EMI below 40–50% of your monthly income.
• Interest rates differ from bank to bank, so compare offers.
• Longer tenures reduce EMI but increase total interest.
• Making part prepayments when possible reduces your overall burden.