Bank-wise Mudra Loan Interest Rates (2026 Comparison)
The table below provides the indicative annual interest rates and processing fees for Mudra Loans offered by major commercial and rural lenders in India, with a specific focus on active networks in Rajasthan (like RMGB):
| Lender Bank | Indicative Interest Rate (p.a.) | Processing Charges |
|---|---|---|
| State Bank of India (SBI) | 8.40% - 11.25% | Shishu: Nil | Kishore/Tarun: Up to 0.50% |
| Bank of Baroda (BOB) | 8.40% - 12.50% | Shishu: Nil | Kishore/Tarun: 0.50% |
| Rajasthan Marudhara Gramin Bank (RMGB) | 8.50% - 12.00% | Shishu: Nil | Kishore/Tarun: Up to 0.50% |
| Punjab National Bank (PNB) | 8.55% - 12.15% | Shishu: Nil | Kishore/Tarun: 0.50% |
| HDFC Bank | 9.50% - 15.50% | Up to 1.00% of loan amount |
| ICICI Bank | 10.00% - 16.00% | Up to 1.00% of loan amount |
How is Mudra Loan Interest Calculated?
Mudra loan interest rates are typically floating rates linked to the lending bank's reference benchmark:
- EBLR (External Benchmark Lending Rate): Most public sector banks link their interest rates to the RBI Repo Rate. Any rate hike or drop by the RBI directly impacts your EMI payments.
- MCLR (Marginal Cost of Funds Based Lending Rate): Some private lenders utilize internal costing benchmarks to determine credit rates, which are updated monthly or annually.
- Risk Premium: Lenders add a risk premium (typically 0.50% to 3.00%) on top of the benchmark based on your CIBIL rating and business viability assessment.
Incentives & Subventions under PMMY
- 2% Interest Subvention (Shishu Scheme): The Government provides a 2% interest subvention discount for Shishu loan borrowers who pay their monthly EMIs on time, making the effective interest rate extremely low.
- Women Entrepreneurs Concession: Many public sector lenders provide an additional interest rebate of 0.25% to 0.50% per annum to promote female business owners.
Official Contacts for Rate Verification
To verify the exact EBLR spread values on any day, you can contact the official banker helpdesk desks:
- SLBC Rajasthan Helpdesk (Convenor - BOB Zonal Office, Jaipur): Toll-Free `1800-180-6546`
- SBI Corporate Customer Care: `1800-11-2211` / `1800-425-3800`
- PMMY Central Support Helpdesk: `1800-180-1111` / `1800-11-0001`
Frequently Asked Questions
Yes, since Mudra loans are linked to EBLR/Repo Rate benchmarks, the interest rate fluctuates dynamically in accordance with RBI monetary policies.
No, as per RBI guidelines, public sector banks do not levy prepayment or foreclosure penalties on Mudra loans if you decide to pay off the balance before the tenure ends.