PM Vishwakarma Loan EMI Calculator
The PM Vishwakarma Loan EMI Calculator helps you calculate the monthly EMI for your collateral-free Enterprise Development Loan under the PM Vishwakarma scheme. The scheme offers two loan tranches at a subsidized interest rate of 5% per annum.
Loan structure (official)
| Tranche | Amount | Tenure | Interest Rate |
|---|---|---|---|
| First | Rs 1,00,000 | 18 months | 5% per annum |
| Second | Rs 2,00,000 | 30 months | 5% per annum |
The second tranche is available only after the first loan is fully repaid.
Interest subvention
The Government of India pays an interest subvention of 8% to the lending bank. The artisan pays only 5%. Credit guarantee fees are also borne by the Government, so there are zero collateral and zero guarantee costs for the beneficiary.
Why this matters
At market rates (12-18% for unsecured loans), a Rs 1 lakh loan would cost Rs 9,000-15,000 in interest over 18 months. Under PM Vishwakarma at 5%, the same loan costs only Rs 3,770 in interest — a saving of Rs 5,000-11,000.
Use the calculator above (Tab 2: Loan EMI) to see your exact EMI and interest saving.
Formula
**EMI Formula (reducing balance method):** EMI = P x r x (1+r)^n / ((1+r)^n - 1) Where: - P = Principal (loan amount) - r = Monthly interest rate = Annual rate / 12 / 100 - n = Loan tenure in months **At 5% (PM Vishwakarma):** r = 5 / 12 / 100 = 0.004167 **At 12% (Market):** r = 12 / 12 / 100 = 0.01 **Interest Saving** = (Market Total Interest) - (Scheme Total Interest)
Example
**First Tranche — Rs 1,00,000, 18 months:** | | PM Vishwakarma (5%) | Market Rate (12%) | |--|-----|-----| | Monthly EMI | Rs 5,765 | Rs 6,062 | | Total Interest | Rs 3,770 | Rs 9,116 | | Total Repayment | Rs 1,03,770 | Rs 1,09,116 | | **Your Saving** | | **Rs 5,346** | **Second Tranche — Rs 2,00,000, 30 months:** | | PM Vishwakarma (5%) | Market Rate (12%) | |--|-----|-----| | Monthly EMI | Rs 6,653 | Rs 7,448 | | Total Interest | Rs -? | Rs -? | | **Your Saving** | | **~Rs 23,850** |
How to Use
- Select your loan tranche (First: Rs 1L/18 months or Second: Rs 2L/30 months)
- The loan amount and tenure auto-fill based on your selection
- Review the interest rate (5% for PM Vishwakarma, changeable for comparison)
- Set the market comparison rate (default 12%)
- Click 'Calculate EMI' to see the side-by-side comparison
- Download CSV or print the report
Frequently Asked Questions
Is the PM Vishwakarma loan really collateral-free?
Yes. The Enterprise Development Loans under PM Vishwakarma are completely collateral-free. The Government of India bears the credit guarantee fees. You do not need to pledge any property or assets to get the loan.
What happens if I default on the loan?
Defaulting on the PM Vishwakarma loan will affect your credit score and may prevent you from accessing the second tranche (Rs 2 lakh). The credit guarantee covers the lender's risk, but you are still legally obligated to repay. Contact your lending institution immediately if you face repayment difficulties.
Can I prepay the loan early?
Yes. There are typically no prepayment penalties for PM Vishwakarma loans. Prepaying early reduces your total interest cost. Check with your specific lending bank for their prepayment policy.
How is the 5% interest rate subsidized?
The Government of India pays an interest subvention of up to 8% to the lending bank. So if the bank's normal lending rate is 13%, the government pays 8% and you pay only 5%. This makes the effective cost to you just 5% per annum.