MSME loan EMI calculator with CGTMSE fee and moratorium

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EMI, guarantee fee and moratorium together

Set the loan, then add a moratorium, the CGTMSE guarantee fee and a processing fee if they apply. The rate filled in is an example from one lender, not an offer.

Loan amount ₹

CGTMSE covers loans up to ₹10,00,00,000 from banks.

Interest rate, reducing balance % a year

An example: one lender's published rate for loans above ₹2,00,000 up to ₹10,00,000.

Repayment tenure, after any moratorium months

Moratorium months

During the moratorium

Pay interest monthly

Add interest to the loan

Which one a lender uses varies. Adding monthly is an assumption.

Include the CGTMSE guarantee fee, if your lender passes it on

Fee concession

None

10%

20%

30%

Women, SC or ST, persons with disability, Agniveer or transgender entrepreneurs; the North Eastern Region, aspirational or credit-deficient districts; ZED-certified units. The maximum combined is 30%.

Processing fee % of the loan

Optional. Fees differ by lender, so this starts at 0.

Estimated EMI -

Total interest: -
CGTMSE guarantee fee, total: -
Processing fee: -
Total cost of credit: -
APR including the fees: -

Repayment by year
Year	Principal repaid	Interest	CGTMSE fee	Balance at year end

Illustrative estimate, not a loan offer. The guarantee fee uses the standard rate. Lenders decide the rate, amount and approval.

How it is calculated

The EMI, the guarantee fee and the moratorium

The EMI

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

P is the loan, r is the monthly rate (the annual rate divided by 12 and by 100) and n is the number of months of repayment.

If you pay interest during a moratorium, the monthly payment is P × r for those months, then the EMI on P. If the interest is added, the balance becomes P × (1 + r)^m after m months, and the EMI is worked out on that balance. Adding it monthly is an assumption, because lenders differ.

The CGTMSE guarantee fee

annual fee = slab rate × amount

The first year's fee is the slab rate times the guaranteed amount. Later years' fees are the slab rate times the outstanding amount. The fee includes GST, so none is added. A concession cuts the fee by 10%, 20% or 30%.

The lender pays the fee and may recover it from the business at its discretion. A lender-specific risk premium of 15% to 70% of the standard rate, or a 10% discount, may apply. This calculator uses the standard rate.

The APR is the monthly rate at which the amount you receive equals the present value of the payments, fees included, multiplied by 12. The amount received is the loan less the processing fee and the first year's guarantee fee. A lender's own figure may be annualised differently, so the Key Facts Statement is the figure to trust.

Fee slabs

CGTMSE annual guarantee fee by loan size

Standard rate for guarantees approved or renewed on or after 01-Apr-2025. Source: the CGTMSE scheme document for CGS-I, updated as on 01-Apr-2026, checked 02-Oct-2026. Each slab includes its upper limit, so ₹10,00,000 is in the first slab.

CGTMSE annual guarantee fee, standard rate in percent a year, by credit facility size
Credit facility	Standard fee a year
Up to ₹10,00,000	0.37%
Above ₹10,00,000 up to ₹50,00,000	0.55%
Above ₹50,00,000 up to ₹1,00,00,000	0.60%
Above ₹1,00,00,000 up to ₹2,00,00,000	0.85%
Above ₹2,00,00,000 up to ₹5,00,00,000	1.00%
Above ₹5,00,00,000 up to ₹8,00,00,000	1.10%
Above ₹8,00,00,000 up to ₹10,00,00,000	1.20%

Concessions: 10% for women, SC or ST, persons with disability, Agniveer-promoted or transgender entrepreneurs. Another 10% for units in the North Eastern Region (up to ₹50,00,000), aspirational or credit-deficient districts. Another 10% for ZED-certified units. The maximum combined concession is 30%.
A lender-specific risk premium of 15% to 70% of the standard rate, or a 10% discount, may apply. This calculator does not model it.
Medium enterprises are not eligible for CGTMSE. Loans secured by collateral or a third-party guarantee are not eligible either, except the unsecured part of a hybrid loan.
CGTMSE covers loans from banks up to ₹10,00,00,000. The ceiling is ₹2,00,00,000 for small finance banks and regional rural banks, and ₹50,00,000 for microfinance institutions. These ceilings are explained here and not modelled.
For the scheme itself, see CGTMSE and its fee page.

Worked example

Worked example: ₹10,00,000 over 36 months

The loan is ₹10,00,000 at an example 10.35% a year, with no moratorium, the guarantee fee on, no concession and no processing fee. The rate is one lender's published rate, not a market rate.

The EMI, guarantee fee, total cost and APR of the example loan, step by step
Step	Working	Result
Monthly rate r	10.35 ÷ 12 ÷ 100	0.008625
Growth factor (1 + r)³⁶	(1 + r)³⁶	1.362292
EMI	₹10,00,000 × r × 1.362292 ÷ (1.362292 − 1)	₹32,432
Total interest	EMI × 36 − ₹10,00,000, using the unrounded EMI	₹1,67,543
Guarantee fee, year 1	0.37% × ₹10,00,000	₹3,700
Guarantee fee, year 2	0.37% × ₹7,00,370, the balance after 12 EMIs	₹2,591
Guarantee fee, year 3	0.37% × ₹3,68,213, the balance after 24 EMIs	₹1,362
Total guarantee fee	The three years added	₹7,654
Total cost of credit	₹1,67,543 + ₹7,654	₹1,75,197
APR with the guarantee fee	Monthly rate at which the amount received equals the payments, times 12	10.84% against 10.35% stated

Repayment by year, with the guarantee fee

Principal repaid, interest paid, guarantee fee and balance at the end of each year of the example
Year	Principal repaid	Interest paid	CGTMSE fee	Balance at year end
1	₹2,99,630	₹89,551	₹3,700	₹7,00,370
2	₹3,32,156	₹57,025	₹2,591	₹3,68,213
3	₹3,68,213	₹20,968	₹1,362	₹0

Moratorium: interest paid monthly versus added to the loan

The example loan with a 6-month moratorium, then 36 EMIs, comparing interest paid monthly with interest added to the loan
Measure	Interest paid monthly	Interest added to the loan
During the moratorium	₹8,625 a month (₹10,00,000 × r)	Nothing paid
Balance when EMIs start	₹10,00,000	₹10,52,879 (₹10,00,000 × (1 + r)⁶)
EMI	₹32,432	₹34,147
Total paid	₹51,750 + ₹11,67,543 = ₹12,19,293	₹34,147 × 36 = ₹12,29,282

Rules that change your cost

MSE rules that change your cost

Collateral: banks may not take collateral on loans to micro and small enterprises up to ₹20,00,000, for loans sanctioned or renewed on or after 01-Apr-2026. Banks may go up to ₹25,00,000 at their discretion for units with a good track record. Older pages say ₹10,00,000.
Prepayment: for floating-rate business loans to micro and small enterprises sanctioned or renewed from 01-Jan-2026, most banks and larger NBFCs may not charge for prepayment. Smaller lenders may not charge on loans up to ₹50,00,000. Fixed-rate loans may differ.
Credit decision: within 14 working days for loans up to ₹25,00,000.
Cost transparency: MSME term loans sanctioned on or after 01-Oct-2024 come with a Key Facts Statement that shows the APR. A fee that is not in it cannot be charged without your explicit consent.

Know the limits

Limits of this calculator

It uses the standard guarantee fee rate and the sanctioned amount, and the balance at the start of each later year. Confirm with your lender how the guaranteed amount is counted.
It does not model lender-specific fee premiums or discounts, or the lower ceilings of some lender types.
It adds interest during a moratorium monthly. Lenders differ.
It does not look at your credit history or check your eligibility. For loans up to ₹20,00,000, see the Mudra loan EMI calculator. For an indicative amount, see the business loan eligibility calculator and the DSCR calculator.
For related products, see government-backed loans and unsecured business loans.

Good to know

Questions and answers

Straight answers on the method, the sources and what the numbers do and do not mean.

How is MSME loan EMI calculated?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). P is the loan amount, r is the monthly rate (the annual rate divided by 12 and by 100) and n is the number of months of repayment. A moratorium, the guarantee fee and a processing fee are added on top. This calculator shows each one separately, so you see the full cost of the loan.

What is the EMI on a ₹10,00,000 MSME loan?

At an example 10.35% a year over 36 months, the EMI is about ₹32,432, and the total interest is about ₹1,67,543. The rate is one lender's published rate for micro-enterprise loans above ₹2,00,000 up to ₹10,00,000, checked on 02-Oct-2026. It is not a market rate. Your lender sets the actual rate.

What is the CGTMSE guarantee fee and who pays it?

CGTMSE, the Credit Guarantee Fund Trust for Micro and Small Enterprises, guarantees part of a collateral-free loan to the lender. It charges the lender an annual guarantee fee by loan size, from 0.37% a year up to 1.20% a year. The lender pays the fee and may recover it from the business at its discretion. Ask your lender whether it does. On ₹10,00,000 the standard fee is ₹3,700 in year one.

How is the CGTMSE fee charged after the first year?

The fee is charged on the guaranteed amount for the first year, and on the outstanding amount for the remaining years. The fee includes GST. In the example, the fee falls from ₹3,700 in year one to ₹2,591 in year two and ₹1,362 in year three as the balance falls. Confirm with CGTMSE or your lender how the guaranteed amount is counted for your loan.

Can a woman entrepreneur get a lower CGTMSE fee?

Yes. CGTMSE gives a 10% concession on the guarantee fee for women entrepreneurs, SC and ST entrepreneurs, persons with disability, Agniveer-promoted and transgender entrepreneurs. Other 10% concessions apply to units in the North Eastern Region, aspirational or credit-deficient districts and ZED-certified units. The combined concession is capped at 30%. The guarantee cover for women entrepreneurs is also higher, at 90% for guarantees from 01-Apr-2024.

Can I get an MSME loan without collateral?

It can be, and it is the lender's decision. For micro and small enterprises, banks may not take collateral on loans up to ₹20,00,000 sanctioned or renewed on or after 01-Apr-2026. CGTMSE can cover collateral-free loans from banks up to ₹10,00,00,000, and the ceiling is lower for some lender types: ₹2,00,00,000 for small finance banks and regional rural banks, and ₹50,00,000 for microfinance institutions.

What is a moratorium and how does it change my EMI?

A moratorium is a period at the start of a loan when you do not repay principal. If you pay the interest each month, nothing builds up. If the interest is added to the loan, the balance grows and the EMI is higher. On ₹10,00,000 at an example 10.35% with a 6-month moratorium and 36 months of repayment, paying interest costs ₹8,625 a month and then an EMI of ₹32,432. Adding the interest makes the EMI ₹34,147. The table below compares them.

Can I prepay an MSME loan without a charge?

It depends on the loan and the lender. For floating-rate business loans to individuals and micro and small enterprises sanctioned or renewed on or after 01-Jan-2026, the RBI says most banks and larger NBFCs (non-banking finance companies) may not charge for prepayment. Small finance banks, regional rural banks, some co-operative banks and middle-layer NBFCs may not charge on loans up to ₹50,00,000. Fixed-rate loans may differ, so read the sanction letter and the Key Facts Statement.

How long can a lender take to decide on my MSME loan?

For loans up to ₹25,00,000 to micro and small enterprises, the RBI's directions say a credit decision should take no more than 14 working days.

What interest rate do lenders charge MSMEs?

Each lender sets its own rate for the business and the loan, and prices by risk. One lender's published schedule, for example, prices loans above ₹25,00,000 by the borrower's CIBIL MSME Rank (a score from 1, least risky, to 10, most risky, from the credit bureau CIBIL) and by security cover. Ask for a written quote and read the Key Facts Statement.

What happens if I miss an EMI?

Since 01-Jan-2024 a lender may charge a penal charge, not penal interest, for breaking a material term, and it may not charge interest on that penal charge. A loan with an instalment overdue for more than 90 days becomes a non-performing asset. Talk to your lender early.

Does using this calculator affect my CIBIL score?

No. It makes no credit enquiry and asks for no name, phone number or PAN. CIBIL is the credit bureau whose score and report lenders check. Like every page on this site, it uses the analytics described in our Privacy Policy and Cookie policy.

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Sources

How to read these figures

Capnix is not a lender. Rates, amounts and approvals are decided by lenders. Rates shown here are examples, not offers.

CGTMSE fee slabs, concessions, cover and ceilings: CGTMSE scheme document for CGS-I, updated as on 01-Apr-2026, checked 02-Oct-2026.
CGTMSE ceiling of ₹10,00,00,000: CGTMSE circular 250/2024-25 of 18-Mar-2025, for guarantees approved on or after 01-Apr-2025. Women's cover of 90%: CGTMSE circular 241 of 10-Dec-2024.
Collateral-free limit and credit decision timeline: RBI amendment of 09-Feb-2026, RBI/2025-26/206, and the RBI Master Direction on lending to the MSME sector, updated 09-Feb-2026.
Prepayment charges: RBI directions of 02-Jul-2025 (RBI/2025-26/64), for loans sanctioned or renewed from 01-Jan-2026. Penal charges: RBI/2023-24/53 of 18-Aug-2023. Key Facts Statement and APR: RBI/2024-25/18 of 15-Apr-2024.
Example rate: one lender's published micro-enterprise rate card, checked 02-Oct-2026. One lender, not a market rate.
How a lender adds interest during a moratorium varies. This calculator adds it monthly, which is an assumption.

Last checked: 02-Oct-2026.