Mudra Loan EMI Calculator 2026
Calculate EMI for MUDRA loans across all categories - Shishu, Kishore, Tarun, and Tarun Plus. Get instant EMI estimates, total interest, and repayment schedule for your micro business loan.
What is MUDRA Loan (Pradhan Mantri MUDRA Yojana)?
MUDRA (Micro Units Development and Refinance Agency) was established by the Government of India on April 8, 2015, as a subsidiary of SIDBI (Small Industries Development Bank of India) under the Pradhan Mantri MUDRA Yojana (PMMY). The primary objective of MUDRA is to provide funding to micro and small business units through various Member Lending Institutions (MLIs) including banks, NBFCs, and microfinance institutions. MUDRA loans are collateral-free loans designed to promote entrepreneurship and self-employment in India, particularly targeting the non-corporate, non-farm small/micro enterprise segment. Since its launch, PMMY has disbursed over ₹23 lakh crore to more than 40 crore loan accounts, making it one of the most successful financial inclusion initiatives in India. The scheme offers loans up to ₹20 lakhs without any processing fee or collateral requirement, with special benefits for women entrepreneurs who receive 0.25% interest rate reduction. MUDRA loans support diverse business activities including manufacturing, trading, services, and agriculture-allied activities, enabling millions of Indians to start and grow their businesses.
MUDRA Loan Categories Explained
Choose the right category based on your business stage and funding requirement
Shishu (शिशु) - Baby Steps
Loan Amount: Up to ₹50,000 | Interest Rate: 8-12% p.a.
Shishu is the foundational category designed for startups and businesses in their nascent stage. Perfect for first-time entrepreneurs starting small ventures like kirana stores, street vendors, food stalls, repair shops, or home-based businesses. This category requires minimal documentation and offers the most lenient eligibility criteria. With loan amounts up to ₹50,000, it provides essential working capital for inventory purchase, equipment, or initial setup costs without any collateral requirement.
Kishore (किशोर) - Adolescent Growth
Loan Amount: ₹50,001 to ₹5,00,000 | Interest Rate: 14-17% p.a.
Kishore caters to businesses that have crossed the initial startup phase and are looking to expand their operations. Ideal for established small businesses needing funds for machinery purchase, business expansion, additional inventory, or hiring employees. This category supports SMEs in manufacturing, trading, and service sectors. Businesses with 1-2 years of operational history and consistent cash flow can leverage Kishore loans for sustainable growth without pledging collateral.
Tarun (तरुण) - Mature Expansion
Loan Amount: ₹5,00,001 to ₹10,00,000 | Interest Rate: Above 16% p.a.
Tarun is designed for well-established businesses with proven track records seeking significant expansion capital. Suitable for enterprises planning major equipment upgrades, facility expansion, geographic expansion, or diversification into new product lines. Businesses with 3+ years of successful operations, consistent profitability, and good credit history can access Tarun loans for substantial business growth. While collateral-free, lenders may require personal guarantees for higher loan amounts.
Tarun Plus (तरुण+) - Advanced Growth (NEW!)
Loan Amount: ₹10,00,001 to ₹20,00,000 | Launched: Oct 2024
Tarun Plus is the newest addition announced in Union Budget 2024-25, effective from October 24, 2024. Exclusively available for businesses that have successfully availed and fully repaid Tarun loans, demonstrating excellent repayment discipline. This category enables scaling businesses to access double the previous limit for major expansions, technology upgrades, or business acquisitions. Eligibility requires a clean repayment history in the Tarun category and strong business fundamentals.
Kishore (किशोर): Loan range ₹50.00 K to ₹5.00 L at 14%-17% p.a.
Two Lakhs Fifty Thousand rupees
Loan Summary
Kishore (किशोर)
Monthly EMI
₹6,013
for 5 years
Principal Amount
₹2.50 L
Total Interest
₹1.11 L
Total Payment
₹3.61 L
Payment Schedule
Showing 1 to 12 of 60 entries
Total Principal
₹2.50 L
Total Interest
₹73.22 K
Total Payable
₹3.23 L
Frequently Asked Questions
Find answers to common questions about MUDRA loans, eligibility, and application process
What is MUDRA Loan (Pradhan Mantri Mudra Yojana)?
MUDRA (Micro Units Development and Refinance Agency) is a financial institution launched by the Government of India on April 8, 2015, to provide funding to micro and small businesses. The Pradhan Mantri MUDRA Yojana (PMMY) offers collateral-free loans to non-corporate, non-farm small/micro enterprises through various lending institutions.
Key Feature: No collateral or security required, no processing fee, and loans up to ₹20 lakhs for business growth.
What are the different categories of MUDRA loans?
MUDRA loans are categorized into four types based on the loan amount and business stage:
1. Shishu (शिशु)
Loans up to ₹50,000 for startups and businesses in the initial stage. Interest rate: 8-12% p.a.
2. Kishore (किशोर)
Loans from ₹50,001 to ₹5 lakhs for businesses that have established themselves. Interest rate: 14-17% p.a.
3. Tarun (तरुण)
Loans from ₹5 lakhs to ₹10 lakhs for well-established businesses looking to expand. Interest rate: Above 16% p.a.
4. Tarun Plus (तरुण प्लस) - New!
Loans from ₹10 lakhs to ₹20 lakhs for businesses that have successfully repaid Tarun loans. Introduced in Budget 2024-25.
Who is eligible for MUDRA loans?
Any individual or entity engaged in income-generating activities can apply for MUDRA loans:
- Individuals: Self-employed persons, entrepreneurs, small traders
- Business Entities: Proprietorships, partnerships, private/public limited companies, LLPs
- Sectors: Manufacturing, trading, services, agriculture-allied activities
- Credit History: Should not be a defaulter with any bank/financial institution
Special Benefits for Women: 25 basis points (0.25%) interest rate reduction for women entrepreneurs.
What documents are required for MUDRA loan application?
Required documents vary by category, but generally include:
Identity Proof:
- Aadhaar Card (mandatory)
- PAN Card
- Voter ID / Passport / Driving License
- Passport-sized photographs
Address Proof:
- Aadhaar Card
- Utility bills (electricity/water)
- Bank account statement
- Rent agreement (if applicable)
Business Proof:
- Business registration certificate
- Udyog Aadhaar / MSME registration
- GST registration (if applicable)
- Trade license / Shop Act license
Financial Documents:
- Bank statements (last 6 months)
- Income proof / ITR (if applicable)
- Business plan / project report
- Quotations for machinery/equipment
What are the interest rates for MUDRA loans?
Interest rates are determined by lending institutions within RBI guidelines:
| Category | Loan Amount | Interest Rate (p.a.) |
|---|---|---|
| Shishu | Up to ₹50,000 | 8% - 12% |
| Kishore | ₹50,001 - ₹5,00,000 | 14% - 17% |
| Tarun | ₹5,00,001 - ₹10,00,000 | Above 16% |
| Tarun Plus | ₹10,00,001 - ₹20,00,000 | As per lender |
Note: Rates may vary by lender. Women entrepreneurs get 0.25% rate reduction.
What is the repayment tenure for MUDRA loans?
MUDRA loans offer flexible repayment tenures ranging from 1 to 7 years depending on the loan category and business cash flow:
- Shishu: Typically 1-3 years, can be extended up to 5 years
- Kishore: Usually 3-5 years, can extend up to 7 years
- Tarun & Tarun Plus: 5-7 years based on business nature
Important: Repayment schedule is designed to match your business cash flow. Discuss with your lender for optimal tenure.
Is collateral required for MUDRA loans?
No, MUDRA loans are collateral-free. This is one of the key features making them accessible to micro and small businesses:
- No property mortgage required
- No guarantor needed for Shishu loans
- No security deposit
- No processing fee
- Simple documentation process
However, for loans above ₹5 lakhs (Tarun and Tarun Plus), some lenders may require personal guarantee or third-party guarantee.
What types of businesses can avail MUDRA loans?
MUDRA loans support a wide range of business activities across sectors:
Manufacturing:
- Food processing
- Textiles & garments
- Handicrafts
- Small-scale industries
Trading:
- Retail shops
- Wholesale trading
- Kirana stores
- E-commerce
Services:
- Beauty parlors/salons
- Repair shops
- Transportation
- IT services
Also eligible: Dairy, poultry, fisheries, beekeeping, agriculture-allied activities, and micro credit schemes.
How to apply for a MUDRA loan?
You can apply for MUDRA loans through multiple channels:
- Banks: Visit any scheduled commercial bank (SBI, HDFC, ICICI, etc.) with your documents
- Regional Rural Banks (RRBs): Approach your local RRB branch
- MFIs (Microfinance Institutions): Apply through registered MFIs
- NBFCs (Non-Banking Financial Companies): Many NBFCs offer MUDRA loans
- Online: Use bank websites or MUDRA portal (mudra.org.in) for information
Application Steps: Fill application form → Submit documents → Bank verification → Loan sanction → Disbursement
What is the Tarun Plus category and who can apply?
Tarun Plus is a new MUDRA loan category announced in Union Budget 2024-25, effective from October 24, 2024:
Key Features:
- Loan Amount: ₹10 lakhs to ₹20 lakhs
- Eligibility: Businesses that have successfully availed and repaid Tarun loans
- Purpose: Designed for scaling up well-established businesses
- Collateral: As per lender's policy
This category enables growing businesses to access higher funding after demonstrating successful repayment track record in the Tarun category.
What are the benefits of MUDRA loans?
Financial Benefits:
- No collateral required
- Zero processing fee
- Competitive interest rates
- Up to ₹20 lakhs funding
- Flexible repayment (1-7 years)
Business Benefits:
- Easy access to credit
- Business expansion support
- Working capital financing
- Equipment/machinery purchase
- Skill development support
Special Benefit: Women entrepreneurs receive 0.25% interest rate reduction, promoting women's entrepreneurship.
Can I prepay my MUDRA loan?
Yes, MUDRA loans can be prepaid without any penalty charges. This flexibility helps businesses manage their finances better:
- Full Prepayment: Pay off entire outstanding amount anytime
- Partial Prepayment: Make additional payments to reduce principal
- No Penalty: Zero prepayment charges for all MUDRA categories
- Interest Savings: Reduces total interest outgo
Pro Tip: Use surplus business income for partial prepayments to save on interest and become debt-free faster.