Mudra Loan Interest Rate Calculator

Mudra (Micro Units Development & Refinance Agency) Loan is a government-backed scheme in India designed to provide financial support to micro, small, and medium enterprises (MSMEs). The scheme was launched by the Government of India under the Pradhan Mantri Mudra Yojana (PMMY) to promote entrepreneurship and support small businesses. Understanding interest rates is crucial for making informed borrowing decisions.

Mudra Loan Categories

• Shishu: Loans up to ₹50,000 for new businesses and startups. Interest rates typically range from 7.5% to 8.5% per annum.
• Kishore: Loans from ₹50,001 to ₹5,00,000 for established businesses looking to expand. Interest rates typically range from 7.5% to 8.5% per annum.
• Tarun: Loans from ₹5,00,001 to ₹10,00,000 for well-established businesses seeking growth capital. Interest rates typically range from 7.5% to 9% per annum.

Bank-Specific Interest Rates

Different banks offer varying interest rates for Mudra loans. SBI (State Bank of India) typically offers rates starting from 7.5%, while PNB (Punjab National Bank) offers rates around 7.65%. Union Bank of India and Canara Bank offer competitive rates around 7.6-7.7%. BOI (Bank of India) rates start from 7.75%, while HDFC Bank offers rates around 7.9%. BOB (Bank of Baroda), IDBI Bank, and IOB (Indian Overseas Bank) offer rates in the range of 7.7-7.85%. It's important to compare rates across banks to find the best deal.

Factors Affecting Interest Rates

• Credit Score: Higher credit scores typically result in lower interest rates
• Business Profile: Established businesses with good track records may get better rates
• Salary Account: Having a salary account with the lending bank can provide 0.25-0.5% discount
• Loan Amount: Larger loan amounts may qualify for better rates
• Loan Tenure: Longer tenures may have slightly higher rates
• Bank Relationship: Existing customers may get preferential rates

Key Features

• No collateral required for loans up to ₹10 lakhs
• Competitive interest rates starting from 7.5% per annum
• Flexible repayment tenure up to 7 years
• Available through various banks including SBI, PNB, Union Bank, Canara Bank, BOI, HDFC, BOB, IDBI, IOB, and more
• Quick processing and minimal documentation
• Supports various business activities including manufacturing, trading, and services
• Salary-based eligibility calculation helps determine maximum loan amount

Eligibility Criteria

• Indian citizens aged 18-65 years
• Micro, small, or medium enterprises
• Non-farm income generating activities
• Minimum monthly income requirements vary by bank (typically ₹15,000-₹25,000)
• Good credit history and repayment capacity
• EMI should not exceed 40-50% of net monthly income

How to Use This Calculator

• EMI Calculator: Enter your loan amount, select your bank and Mudra category, and get instant EMI calculations with detailed payment schedules. Compare different interest rates to find the best option.
• Salary-Based Eligibility Calculator: Enter your monthly salary, existing EMIs, age, and whether you have a salary account to determine your maximum eligible loan amount and category. This helps you understand how much you can borrow based on your income.
• Interest Rate Comparison: Compare interest rates across multiple banks simultaneously. Select banks to compare and see which offers the best rates, lowest EMI, and total interest. This feature helps you make an informed decision.
• Export payment schedules to CSV for detailed financial planning
• Use the calculator to understand how different interest rates affect your monthly EMI and total interest payable

Tips for Getting the Best Interest Rate

• Maintain a good credit score (above 750)
• Open a salary account with the lending bank
• Compare rates from multiple banks before applying
• Negotiate with banks based on your business profile and creditworthiness
• Consider shorter loan tenures if you can afford higher EMIs
• Build a relationship with the bank through other products

Note: Interest rates and eligibility criteria may vary by bank and are subject to change. Rates mentioned are indicative and may differ based on individual profiles, credit scores, and bank policies. Please contact your preferred bank for the most current rates and terms. This calculator provides estimates for planning purposes only. Always verify rates with the bank before making a final decision.