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Indian Finance 🇮🇳

Mudra Loan Eligibility — Calculations & Slabs for FY 2026-27

Check which Mudra loan tier -- Shishu, Kishore, or Tarun -- your business type and stage qualifies for under PMMY 2025 guidelines.

Last verified: June 2026 | Source: mudra.org.in

1. Loan & Business Specs

Frequently Asked Questions (FAQ)

What are the four categories of Mudra Loans?

Mudra loans are divided into: 1. Shishu (up to ₹50,000) for micro-startups. 2. Kishore (₹50,001 to ₹5 Lakh) for buying equipment/materials. 3. Tarun (₹5,00,001 to ₹10 Lakh) for established expansions. 4. Tarun Plus (₹10,00,001 to ₹20 Lakh) for experienced entrepreneurs with clean repayment histories on prior Mudra loans.

Is collateral required for a Mudra Loan?

As per RBI guidelines, commercial banks and lenders are instructed not to demand any third-party collateral or security for Mudra loans. The loans are backed by the Credit Guarantee Fund for Micro Units (CGFMU) administered by NCGTC.

What is the interest rate for a Mudra Loan?

Mudra loan interest rates are not fixed and vary across banks, NBFCs, and MFIs. They are typically linked to the lender's Base Rate / MCLR plus a small spread, generally ranging between 9% and 12% per annum.

How does the Udyam Registration help in applying for Mudra Loans?

Udyam registration is a mandatory registration for Micro, Small and Medium Enterprises (MSMEs) in India. Having a Udyam Registration Certificate is highly recommended (and often mandatory) by banks as part of the KYC and loan processing requirements.

Where can I verify the source data for this calculator?

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth

💡 What Does This Calculator Do?

This calculator determines your loan category (Shishu, Kishore, Tarun, or Tarun Plus) under the Pradhan Mantri Mudra Yojana (PMMY), evaluates your eligibility, and estimates your monthly EMIs and loan capacity.

📋 How to Use It

  1. 1
    Loan Details: Enter the loan amount needed, business stage (Startup or Expansion), and your business sector.
  2. 2
    Financial Strength: Input your projected annual turnover and credit score range.
  3. 3
    Priority Profiling: Select if you qualify as a woman entrepreneur or belong to SC/ST/OBC/Minority categories.

🧬 The Logic Explained Simply

  • The Concept: PMMY offers collateral-free business loans up to ₹20 Lakh. The categories are:
  • Shishu: Up to ₹50,000 (ideal for micro-startups).
  • Kishore: ₹50,001 to ₹5,00,000 (for machinery and expansion).
  • Tarun: ₹5,00,001 to ₹10,00,000 (established businesses).
  • Tarun Plus: ₹10,00,001 to ₹20,00,000 (requires successful repayment of previous Mudra loans).
  • The Subsidies: Women, SC/ST, and Minority applicants get prioritized interest rates and speedier approvals from lending institutions.

💡 Real-World Calculation Breakdown

An entrepreneur needs a loan of ₹5,00,000 to expand her boutique in Maharashtra. She has a credit score of 740 and selects the woman entrepreneur category.

  • Mudra Category: Kishore (Amount between ₹50,001 and ₹5,00,000).
  • Collateral Required: ₹0 (No collateral is required under the scheme).
  • EMI Estimate: Assuming an interest rate of 10.00% for a 5-year tenure:
  • Monthly EMI: ₹10,624.
  • Total Interest: ₹1,37,411 over 60 months.

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