If you're a budding entrepreneur or a small business owner in India, the Pradhan Mantri Mudra Yojana (PMMY) can be a powerful financial tool to grow your business. 

Launched in 2015, the scheme offers collateral-free loans up to ₹10 lakhs to micro and small enterprises. 

Whether you run a shop, provide services, or manage a small manufacturing unit, a Mudra loan can help you with working capital or equipment purchases.

But before you apply, it’s important to understand your eligibility and how much you’ll have to repay monthly. That’s where the Mudra Loan EMI Calculator comes in handy.

What is a Mudra Loan EMI Calculator?

A Mudra Loan EMI Calculator is a simple online tool that helps you estimate your monthly installment (EMI) based on the loan amount, interest rate, and repayment tenure. This can help you plan your finances better and ensure that your business cash flow can handle the repayment.

How It Works:

You need to input:

• Loan amount (up to ₹10 lakhs)

• Interest rate (usually between 8% to 12%)

• Repayment tenure (up to 5 years)

The calculator will instantly show your monthly EMI, total interest payable, and the total amount payable over the loan period.

Why Use a Mudra Loan Calculator?

1. Financial Planning

Knowing your EMI in advance helps you decide if the loan fits within your business’s financial capacity. It prevents you from over-borrowing and helps you prepare for regular payments.

2. Comparison Tool

You can change the inputs to see how different tenures or loan amounts affect your EMI. This makes it easier to find a repayment plan that works best for you.

3. Quick and Accurate

Manual EMI calculations can be confusing and time-consuming. The calculator offers instant and accurate results, saving you effort and reducing the risk of error.

Check Your Mudra Loan Eligibility

Before applying, you should also check whether you meet the basic Mudra loan eligibility criteria:

• You must be an Indian citizen aged 18–65 years.

• You should own a non-farming small or micro business in manufacturing, trading, or services.

• The business should not be a defaulter to any bank or financial institution.

• The loan amount should fall under one of the three categories:

1. Shishu: Loans up to ₹50,000

2. Kishor: Loans from ₹50,001 to ₹5 lakhs

3. Tarun: Loans from ₹5 lakhs to ₹10 lakhs

Different banks may have slightly varying eligibility checks, but these are the general guidelines.

Final Thoughts

The Mudra Loan EMI Calculator is a valuable tool to help you plan before you borrow. It empowers small business owners with the knowledge to make confident financial decisions. Whether you're just starting out or expanding your operations, using the calculator ensures you’re not caught off-guard by monthly payments.