MUDRA Loan Calculator India — Shishu, Kishore & Tarun EMI
Calculate your PMMY MUDRA loan EMI, find the right Shishu / Kishore / Tarun category for your business, and compare MUDRA loan (no collateral, ~10%) vs a regular business loan (collateral required, ~14%). Based on PMMY (Pradhan Mantri Mudra Yojana) guidelines, FY 2025-26. No collateral required for loans up to ₹10,00,000.
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How to Use This Calculator
Mudra EMI tab
Select your MUDRA category (Shishu / Kishore / Tarun), enter the loan amount, interest rate offered by your lender, and repayment tenure. The calculator instantly shows your monthly EMI, total interest payable, total repayment amount, and a year-wise amortisation breakdown. It also validates your amount against the category limits and flags if the tenure exceeds the standard maximum.
Which Category? tab
Select your business type and enter how much funding you need. The calculator auto-suggests the correct MUDRA category (Shishu, Kishore, or Tarun) based on your funding need, shows eligibility criteria, provides a quick EMI estimate at the typical market rate, and flags any potential concerns — such as if your funding need is disproportionately large relative to your annual turnover.
Mudra vs Regular Loan tab
Enter the loan amount, tenure, MUDRA interest rate, and the rate you'd pay on a regular business loan that requires collateral. The calculator shows the EMI difference, total interest saved over the loan tenure, the value of collateral freed up, and a year-wise EMI comparison. This helps you quantify exactly how much you benefit from MUDRA's no-collateral structure.
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The Formula
MUDRA EMI is calculated using the standard reducing balance (flat rate) method — the same formula used by all banks in India:
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
Where:
P = Principal loan amount (e.g., ₹3,00,000)
r = Monthly interest rate = Annual rate / 12 / 100
(e.g., 10% p.a. → r = 10 / 12 / 100 = 0.008333)
n = Total number of monthly instalments (e.g., 5 years = 60 months)
Example: ₹3,00,000 at 10% for 5 years
r = 0.008333 | n = 60
EMI = 3,00,000 × 0.008333 × (1.008333)60 / ((1.008333)60 − 1)
EMI = ₹6,374/month
Total repayment = ₹6,374 × 60 = ₹3,82,440
Total interest = ₹3,82,440 − ₹3,00,000 = ₹82,440
Total Interest:
Total Interest = (EMI × n) − P
Outstanding Balance after k months:
Balancek = P × (1 + r)k − EMI × ((1 + r)k − 1) / r
The reducing balance method is more borrower-friendly than the flat rate method sometimes used by informal lenders. On reducing balance, you pay interest only on the outstanding principal, not the original loan amount.
Examples
Priya — kirana store owner in Pune, needs ₹2 lakh for stock
Priya runs a small kirana store. She needs ₹2,00,000 to expand her inventory before Diwali. Her turnover is about ₹12 lakh per year.
Without MUDRA, a private lender charging 14% would give EMI of ₹6,830 — Priya saves ₹377/month and ₹13,572 over 3 years.
Raju — food truck owner in Bengaluru, needs ₹8 lakh for equipment
Raju wants to buy commercial kitchen equipment for his food truck business. He needs ₹8,00,000.
By using MUDRA Tarun instead of a regular business loan at 15%, Raju saves ₹1,647/month and ₹98,820 over 5 years — plus no collateral pledge required.
Meena — new tailor in a village, needs ₹30,000 for a sewing machine
MUDRA Category Comparison
Shishu vs Kishore vs Tarun — at a glance ▼
| Feature | Shishu | Kishore | Tarun |
|---|---|---|---|
| Loan amount | Up to ₹50,000 | ₹50,001 – ₹5,00,000 | ₹5,00,001 – ₹10,00,000 |
| For whom | New / micro enterprise | Mid-stage enterprise | Growth-stage enterprise |
| Typical interest rate | 7.5–10% p.a. | 9–12% p.a. | 10–13% p.a. |
| Max repayment tenure | 5 years | 5 years | 5–7 years |
| Collateral required | No | No | No |
| Processing fee | Nil (PSU banks) | Varies (0–1%) | Varies (0.5–1%) |
| Documentation | KYC only (minimal) | KYC + bank statements | KYC + ITR + business plan |
| Example use case | Sewing machine, vegetable cart | Kirana store, small workshop | Food truck, retail expansion |
FAQ
- Shishu — up to ₹50,000. For new or very small enterprises starting up. E.g., a vegetable vendor, a tailor buying a sewing machine, a cobbler setting up shop.
- Kishore — ₹50,001 to ₹5,00,000. For mid-stage enterprises with some business history. E.g., a kirana store expanding stock, a repair shop buying tools.
- Tarun — ₹5,00,001 to ₹10,00,000. For established businesses in a growth phase. E.g., a food truck owner buying commercial equipment, a textiles unit upgrading machinery.
Documents typically required:
- KYC: Aadhaar card + PAN card
- Address proof (utility bill, rent agreement)
- Business address proof
- 2 passport-sized photographs
- Business registration / GST certificate (if applicable)
- For Kishore/Tarun: last 6 months bank statements, ITR for 1–2 years, business plan