Monthly Payment EMI
Total Interest
Total Repayment
The Pradhan Mantri Mudra Yojana (PMMY) continues to be one of India’s most important financial support schemes for small and micro businesses. It empowers entrepreneurs engaged in trading, services, and manufacturing by providing collateral-free loans up to ₹10 lakh. Whether you want to start a new venture or expand an existing business, Mudra loans make it possible with flexible repayment options and accessible eligibility.
The PMMY divides Mudra loans into three main segments each designed for different stages of business growth.
1. Shishu (Up to ₹50,000):
Ideal for startups and new entrepreneurs. This stage supports businesses just beginning operations, helping with essential expenses like equipment, raw materials, and shop setup.
2. Kishor (₹50,001 to ₹5 lakh):
Aimed at growing enterprises that need more working capital or want to expand operations. It helps in upgrading machinery, hiring staff, or managing bulk inventory.
3. Tarun (₹5,00,001 to ₹10 lakh):
For established businesses planning to scale up, diversify, or invest in new technology. This stage promotes long-term expansion.
In 2025, the government introduced Tarun Plus, extending the upper limit to ₹20 lakh for eligible borrowers, further strengthening India’s MSME sector.
A Mudra Loan EMI Calculator is a simple tool that shows your monthly repayment amount (EMI) based on loan details. By entering the loan amount, interest rate, and tenure, borrowers can plan finances accurately.
It prevents surprises by giving a clear view of total interest and total payment. This helps maintain a steady budget while ensuring timely repayments.
Example: A ₹2 lakh Mudra loan at 8% interest for 12 months has an EMI of around ₹17,398. This helps borrowers decide if the repayment fits within their income.
Using an EMI calculator offers several financial advantages:
This tool is particularly helpful for first-time borrowers who want to avoid financial strain.
| 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 |
Interest rates may vary depending on business type, credit history, and loan category, so borrowers should always confirm with their lender before applying.
As India’s MSME ecosystem continues to expand, Mudra loans remain a crucial financial pillar. The addition of the Tarun Plus category encourages larger funding support for growth-driven entrepreneurs.
These loans are collateral-free, often have no processing charges, and come with flexible repayment schedules. With tools like EMI calculators, small businesses can make informed decisions and manage debt responsibly.
For 2025, Mudra loans are expected to play an even greater role in helping rural and urban entrepreneurs access formal credit, boosting employment and economic resilience.
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