1. What is SBI Mudra Loan EMI?

The SBI Mudra Loan EMI is the fixed monthly payment you make to repay your Mudra loan from State Bank of India. The EMI consists of both principal and interest components, calculated using the reducing balance method.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment (INR)

Explanation: The formula accounts for compound interest over the loan period, ensuring each payment reduces both principal and interest.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan finances accordingly, and choose the right loan tenure based on their repayment capacity.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (starting at 7.30% for SBI Mudra loans), and loan tenure in months (up to 60 months for Mudra loans).

5. Frequently Asked Questions (FAQ)

Q1: What are the current SBI Mudra loan interest rates?
A: Rates start at 7.30% p.a. for Shishu loans (up to ₹50,000) and may vary based on loan category and borrower profile.

Q2: What is the maximum tenure for Mudra loans?
A: Typically up to 5 years (60 months), depending on the loan scheme and business requirements.

Q3: Does the EMI remain constant throughout the tenure?
A: Yes, EMI remains fixed unless interest rates change (for floating rate loans) or you make prepayments.

Q4: How can I reduce my EMI burden?
A: You can opt for a longer tenure (reduces EMI but increases total interest) or make partial prepayments.

Q5: Are there any processing fees for Mudra loans?
A: SBI charges minimal processing fees, typically 0.5% of the loan amount plus GST.