Mudra Loan EMI Calculator

What is a Mudra Loan

A Mudra Loan is a type of loan offered by financial institutions in India. It is a loan that is secured by the assets of the borrower, such as real estate, vehicles, and personal property. The loan is typically offered at a lower interest rate compared to other types of loans, and the borrower is required to maintain a minimum monthly installment towards the loan.

How to Calculate Mudra Loan EMI

Follow these steps to calculate your Mudra Loan EMI:

1. Enter the loan amount, interest rate, and loan tenure in the input fields.
2. automatically you will see the monthly EMI, total interest, and total payment. Click the "Calculate EMI" button to see the results.
3. Review the monthly EMI, total interest, and total payment.

Key Points

• Higher interest rate means higher EMI
• Longer tenure reduces EMI but increases total interest
• Initial EMIs have higher interest component
• Later EMIs have higher principal component
• Part prepayment can reduce total interest burden
• EMI should not exceed 40-50% of monthly income

Example

Suppose you want to take a Mudra loan of ₹1,00,000 for 24 months at a rate of 12% per annum. What is the monthly EMI?

EMI = 1,00,000 x 12 x (1 + 12/100)^(24*12) / ((1 + 12/100)^(24*12) - 1)

EMI = ₹9,650

Important Note

EMI is the amount that is paid back to the lender monthly, while interest is the additional amount that is added to the principal amount each month.

Part prepayment can reduce total interest burden

EMI should not exceed 40-50% of monthly income