Mudra loan EMI calculator, also for PMEGP with subsidy

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Mudra EMI, or PMEGP with the subsidy

Choose the scheme, then enter the loan. Rates here are examples from one lender, not Mudra or PMEGP rates. Your lender sets the rate.

Scheme

Mudra

PMEGP

Loan amount ₹

Mudra loans go up to ₹20,00,000.

Interest rate, reducing balance % a year

An example: one lender's published rate for loans above ₹2,00,000 up to ₹10,00,000. Not a Mudra rate.

Tenure months

The bounds here are limits of this calculator. Your lender sets the tenure.

Estimated EMI -

Total interest: -
Total repayment: -

Repayment by year
Year	Principal repaid	Interest paid	Balance left

Illustrative estimate, not a loan offer. Rates are examples. Lenders decide the rate, amount and approval.

How it is calculated

How the EMI, the category and the subsidy are worked out

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. This is the standard formula for a reducing-balance loan.

The Mudra category comes from the amount. Upper limits are inclusive, so ₹50,000 is Shishu, ₹5,00,000 is Kishor and ₹10,00,000 is Tarun.

PMEGP loan and subsidy

bank loan = project cost × (1 − own contribution)

Own contribution is 10% of the project cost for the general category and 5% for the special category. The bank finances the rest. The margin-money subsidy is a percentage of the project cost, from the table below. Land cost is not part of the project cost.

If you enter a moratorium, the calculator shows interest-only payments of the loan times r each month during it, then the EMI over the repayment period.

Mudra limits

Mudra categories and limits

The official category name is Kishor, often spelt Kishore. Source: the official Mudra site, checked on 02-Oct-2026.

Mudra loan categories and the loan amount each covers
Category	Loan amount	Note
Shishu	Up to ₹50,000	The smallest loans.
Kishor	Above ₹50,000 and up to ₹5,00,000	Often spelt Kishore.
Tarun	Above ₹5,00,000 and up to ₹10,00,000	No extra condition.
Tarun Plus	Above ₹10,00,000 and up to ₹20,00,000	Only for borrowers who took and repaid an earlier Tarun loan.

PMEGP limits

PMEGP own contribution and subsidy

PMEGP is approved to FY2025-26. An extension past 31-Mar-2026 is not yet confirmed. Maximum project cost is ₹50,00,000 for manufacturing and ₹20,00,000 for service or business, and a lender may lend more without the subsidy.

PMEGP own contribution and margin-money subsidy by applicant category and area, as a share of the project cost
Category and area	Your own contribution	Margin-money subsidy
General, urban	10%	15%
General, rural	10%	25%
Special category, urban	5%	25%
Special category, rural	5%	35%

Sources: PIB release of 30-May-2022 for subsidy and project cost limits, and the scheme guidelines compendium of a state implementing agency for own contribution. Checked 02-Oct-2026.

Worked examples

Worked examples: Mudra and PMEGP

Example one is a Mudra loan of ₹10,00,000 over 36 months. Example two is a PMEGP manufacturing project of ₹25,00,000. The rates are examples from one lender's published rates, not Mudra or PMEGP rates.

Mudra worked example, step by step
Step	Working	Result
Category	₹10,00,000 is above ₹5,00,000 and up to ₹10,00,000	Tarun
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 repayment	EMI × 36, using the unrounded EMI	₹11,67,543
Total interest	Total repayment − ₹10,00,000	₹1,67,543

Repayment by year

Year-by-year repayment of the Mudra example
Year	Principal repaid	Interest paid	Balance left
1	₹2,99,630	₹89,551	₹7,00,370
2	₹3,32,156	₹57,025	₹3,68,213
3	₹3,68,213	₹20,968	₹0

PMEGP examples

Two PMEGP worked examples with own contribution, bank loan, subsidy and EMI
Line	Manufacturing, special category, rural	Service, general, urban
Project cost	₹25,00,000	₹10,00,000
Own contribution	5% = ₹1,25,000	10% = ₹1,00,000
Bank loan	₹23,75,000	₹9,00,000
Margin-money subsidy	35% = ₹8,75,000	15% = ₹1,50,000
Example rate and repayment	10.5% over 60 months	10.35% over 60 months
EMI on the bank loan	₹51,048	₹19,278
Total interest	₹6,87,881	₹2,56,662

The first example could be a woman applicant, who falls in the special category. No moratorium is assumed. The subsidy is shown beside the EMI and is not subtracted from it.

Other costs

What else adds to the cost

Processing fee: there is no scheme-wide rule, and each lender sets it. As one lender's example, its Mudra page shows no fee on term loans up to ₹5,00,000 and 1% of the sanctioned limit above that.
Guarantee fee: Mudra loans are covered by a credit guarantee fund for micro units. At one lender the borrower bears the guarantee fee, so ask your lender who pays.
Collateral: Mudra loans are collateral-free up to ₹20,00,000. For PMEGP units, banks are told to lend collateral-free up to ₹20,00,000 for loans sanctioned or renewed from 01-Apr-2026. Older guidelines said ₹10,00,000.
Mudra has no agents or middlemen. Apply directly with a lender, or on the official portal.

Know the limits

Limits of the tool

It works out the EMI only. It does not add processing or guarantee fees. See the MSME loan EMI calculator for a guarantee fee and a moratorium, and the business loan EMI calculator for a regular loan.
It does not model how a PMEGP subsidy is adjusted to the loan. Your lender does that under the scheme rules.
It does not look at your eligibility. For that, see the business loan eligibility calculator, Mudra eligibility and PMEGP eligibility.
More on the schemes: Mudra interest rate and subsidy, PMEGP subsidy and all schemes.

Good to know

Questions and answers

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

How is Mudra 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. For a ₹10,00,000 loan at an example 10.35% over 36 months, the EMI is ₹32,432. Mudra does not set the rate, so use the rate your lender quotes.

What is the EMI on a ₹50,000 Mudra loan?

A ₹50,000 loan is in the Shishu category. At 8.15% over 36 months, the EMI is about ₹1,570. That rate is one lender's published rate for micro-enterprise loans up to ₹50,000, checked on 02-Oct-2026. It is an example, not a Mudra rate.

What is the EMI on a ₹5,00,000 Mudra loan?

A ₹5,00,000 loan is in the Kishor category (often spelt Kishore). At an example 10.35% over 36 months, the EMI is about ₹16,216. That 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.

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

A ₹10,00,000 loan is in the Tarun category. At an example 10.35% over 36 months, the EMI is about ₹32,432, and the total interest is about ₹1,67,543. Your lender sets the actual rate.

What are the Shishu, Kishor, Tarun and Tarun Plus limits?

Shishu covers loans up to ₹50,000. Kishor covers loans above ₹50,000 up to ₹5,00,000 (often spelt Kishore). Tarun covers loans above ₹5,00,000 up to ₹10,00,000. Tarun Plus covers loans above ₹10,00,000 up to ₹20,00,000, and only for borrowers who took and repaid an earlier Tarun loan. The source is the official Mudra site, checked on 02-Oct-2026.

What is the interest rate on a Mudra loan?

Mudra's own FAQ says interest rates are deregulated, so each lender sets its own within the RBI's guidelines. As one lender's published example, micro-enterprise loans above ₹2,00,000 up to ₹10,00,000 are priced at 10.35% a year, made up of the lender's benchmark rate plus a spread. That is one lender on one date, not a Mudra rate.

Is there any subsidy on a Mudra loan?

No, not on the loan itself. Mudra's FAQ says there is no subsidy under the scheme. A Mudra loan can be linked to another government scheme that gives a capital subsidy, and then it is eligible for that subsidy. PMEGP is one such scheme, and the calculator above has a PMEGP mode.

Do I need collateral or a guarantor for a Mudra loan?

Mudra loans are collateral-free. Mudra's FAQ says banks are told not to insist on collateral for loans to micro and small enterprises up to ₹20,00,000. The loans are covered by a credit guarantee fund for micro units, run by NCGTC (National Credit Guarantee Trustee Company). At one lender the borrower bears the guarantee fee, so ask your lender.

How is the PMEGP loan EMI calculated with the subsidy?

The EMI is worked out on the bank loan, which is the project cost less your own contribution, using the standard formula. The margin-money subsidy is shown beside it as a separate figure. Your lender adjusts the subsidy as the scheme rules say, and this page does not model that adjustment. Check the current guidelines on the PMEGP portal.

How much subsidy does PMEGP give?

The margin-money subsidy is a share of the project cost. General category: 15% in urban areas and 25% in rural areas. Special category: 25% in urban areas and 35% in rural areas. Special category includes SC, ST, OBC, women, transgender, physically disabled, North Eastern Region, aspirational and border district applicants, ex-servicemen and minorities. Municipal areas count as urban and panchayat areas as rural.

How much money do I need to put in for a PMEGP project?

Your own contribution is 10% of the project cost for the general category and 5% for the special category. The bank finances the rest. On a ₹25,00,000 project in the special category, that is ₹1,25,000 from you and ₹23,75,000 from the bank.

Is the PMEGP scheme still open?

PMEGP was approved for FY2021-22 to FY2025-26. The portal pmegp.msme.gov.in was live and offering new applications on 02-Oct-2026. We found no source that confirms the scheme continues past 31-Mar-2026, so check the portal before you plan around it.

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.

Mudra categories, eligibility, collateral, interest and subsidy: official Mudra site, offerings and FAQ pages, checked 02-Oct-2026.
Tarun Plus: PIB release of 08-Apr-2025. Mudra does not lend directly, and appoints no agents or middlemen.
PMEGP subsidy and project cost limits: PIB release of 30-May-2022. Own contribution, rural and urban areas and repayment: scheme guidelines compendium of a state implementing agency. Status: PMEGP portal, checked 02-Oct-2026.
Example rates: one lender's published micro-enterprise rate card, checked 02-Oct-2026. One lender, not a Mudra or PMEGP rate.
Processing fee example: one lender's published Mudra page, checked 02-Oct-2026.
Collateral for PMEGP units: RBI amendment of 09-Feb-2026, RBI/2025-26/206, for loans sanctioned or renewed on or after 01-Apr-2026. Older guidelines said ₹10,00,000.

Last checked: 02-Oct-2026.