How to interpret your result
Monthly EMI is your fixed monthly payment; Total Interest is the true cost of borrowing over the full tenure; Total Repayment (principal + interest) is what you'll pay back in all. A longer tenure lowers your EMI but raises total interest — don't choose a tenure on EMI affordability alone without checking what it does to the total cost.
Check which PMMY category your loan amount falls under — Shishu (up to ₹50,000), Kishore (₹50,000–₹5 lakh), or Tarun (₹5 lakh–₹10 lakh) — since collateral-free eligibility and typical bank rates vary by category. Mudra loans are collateral-free by design under the scheme, so if a lender is asking for security, confirm that's actually a Mudra loan and not a general business loan.
This calculator assumes a standard reducing-balance EMI schedule. If your lender quotes a flat-rate loan instead, your actual interest cost will run noticeably higher than the reducing-balance figure shown here for the same headline rate — always ask which method applies before comparing offers.
Mudra loan: government-backed credit for micro businesses
The Pradhan Mantri Mudra Yojana (PMMY) was launched to provide institutional credit to micro enterprises that have historically been excluded from formal banking. Since 2015, over 40 crore Mudra loans have been disbursed across India.
Three Mudra loan categories
See the loan-amount bands above — Shishu for first-time borrowers and micro traders, Kishore for businesses with 1–3 years of operations, Tarun for established micro businesses needing scale-up, and Tarun Plus for eligible Tarun borrowers with good repayment history.
Who should apply?
Mudra loans work well for:
- E-commerce sellers starting on Meesho, Flipkart, or Amazon who need working capital for inventory
- Home-based businesses — tailoring, food processing, beauty services, tuition
- Street vendors and retailers — fruit/vegetable sellers, kirana stores, tea stalls
- Artisans and craftspeople — weavers, potters, carpenters
How to apply for a Mudra loan
- Visit any scheduled commercial bank, MFI, or NBFC
- Fill Mudra application form (available at branches or via Udyamimitra portal)
- Submit: PAN/Aadhaar, business proof, bank statement for 6 months, UDYAM/GST if registered
- Loan disbursed to your bank account (Kishore/Tarun) or via Mudra Card (Shishu)
The Mudra Card (for Shishu loans) is a RuPay debit card linked to an overdraft account — draw as needed, pay interest only on what you use.