Mudra Loan Calculator
Find your PMMY category — Shishu, Kishor or Tarun — and calculate the EMI for your Mudra loan.
Since 2024, a Tarun Plus category offers loans above ₹10 lakh and up to ₹20 lakh to entrepreneurs who have successfully repaid an earlier Tarun loan.
Mudra loan interest rates typically range from ~8% to ~12% p.a. and vary by bank, scheme and borrower profile.
What is a Mudra loan (PMMY)?
The Pradhan Mantri Mudra Yojana (PMMY) is a Government of India scheme launched in 2015 that provides collateral-free loans up to ₹10 lakh (₹20 lakh under Tarun Plus) to non-farm income-generating micro and small enterprises. Loans are routed through banks, NBFCs and microfinance institutions. Mudra loans are meant for manufacturing, trading and service-sector micro businesses — not for agricultural activities, which are funded under separate schemes.
Key things to know
No security or collateral is required for Mudra loans. The loan is backed by a credit guarantee, which is why it is accessible to first-time and small entrepreneurs.
Funds must be used for income-generating non-farm activities — shops, small manufacturing units, service providers, transport vehicles and similar micro/small businesses.
The actual interest rate, eligibility, tenure and amount are decided by the lending bank as per RBI norms and your business profile. Rates are not fixed by the scheme.
Frequently asked questions
What is a Mudra loan?
A Mudra loan is a collateral-free loan provided under the Pradhan Mantri Mudra Yojana (PMMY), a Government of India scheme. It offers funding up to ₹10 lakh (and up to ₹20 lakh under Tarun Plus) to non-farm micro and small enterprises through banks, NBFCs and microfinance institutions.
Who is eligible for a Mudra loan?
Any Indian citizen who runs or plans to start a non-farm income-generating micro or small enterprise — such as a shop, manufacturing unit, service business or transport venture — can apply. This includes proprietors, partnership firms, small businesses and individuals. The final eligibility is assessed by the lending bank based on your business plan and creditworthiness.
What documents are needed for a Mudra loan?
Commonly required documents include identity proof (Aadhaar, PAN, voter ID), address proof, recent photographs, proof of business existence or a business plan, bank statements, quotations for machinery or assets to be purchased, and category/caste certificate where applicable. Requirements vary by bank.
What is the difference between Shishu, Kishor and Tarun?
The three categories reflect the stage and funding needs of the business. Shishu covers loans up to ₹50,000 for very early-stage units. Kishor covers ₹50,001 to ₹5 lakh for businesses looking to grow. Tarun covers ₹5 lakh to ₹10 lakh for established micro enterprises. A Tarun Plus category (introduced in 2024) allows up to ₹20 lakh for entrepreneurs who have repaid an earlier Tarun loan.
What is the interest rate on a Mudra loan?
Mudra loans do not have a single fixed rate. Rates typically range from about 8% to 12% per annum and are decided by the individual lending bank or institution as per RBI guidelines, the category of loan and the borrower profile. Always confirm the applicable rate with your lender.