About the MSME Loan Calculator
What is the MSME Loan Calculator?
Micro, small and medium enterprises (MSMEs) can borrow term loans and working capital from banks and NBFCs, often under priority-sector lending with collateral-free cover from the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Enter the loan amount, rate, tenure and processing fee. This MSME loan calculator shows the EMI, total interest and effective annual cost of the loan.
How to use the MSME Loan Calculator
- Loan Amount (₹) (sample: 20,00,000)
- Interest Rate (% per year) (sample: 11)
- Tenure (years) (sample: 5)
- Processing Fee (% of loan, GST added at 18%) (sample: 1)
- Press Calculate MSME Loan EMI (results also refresh as you type). The result card shows the Monthly EMI, along with Total interest, Total amount payable, Upfront fees incl. GST and Effective annual cost (APR) incl. fees.
Formula used
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P = the loan amount
- r = the monthly interest rate = annual rate ÷ 12 ÷ 100
- n = the number of monthly instalments
Each month, interest = outstanding balance × r and the rest of the EMI repays principal, so interest falls and principal repayment rises over time.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Loan Amount (₹) | 20,00,000 |
| Interest Rate (% per year) | 11 |
| Tenure (years) | 5 |
| Processing Fee (% of loan, GST added at 18%) | 1 |
| Result | Value |
|---|---|
| Monthly EMI | ₹43,485 |
| Total interest | ₹6,09,091 |
| Total amount payable | ₹26,09,091 |
| Upfront fees incl. GST | ₹23,600 |
| Effective annual cost (APR) incl. fees | 12.15% |
Tips for using the MSME Loan Calculator
- Register on the Udyam portal — it is required for most MSME schemes.
- CGTMSE guarantees collateral-free loans up to ₹10 crore for eligible micro and small enterprises.
- Keep GST returns and bank statements clean to qualify for better rates.