Pradhan Mantri MUDRA Yojana
Ministry of Finance, through MUDRA and lending institutions
Small business loans for non-corporate, non-farm micro enterprises in manufacturing, trading and services, given by banks, NBFCs and microfinance lenders. MUDRA itself refinances lenders and does not lend directly. Loans come in four sizes, from Shishu to Tarun Plus, with the largest reserved for borrowers who already repaid a Tarun loan.
What you can get
Shishu up to ₹50,000, Kishor up to ₹5 lakh, Tarun up to ₹10 lakh, Tarun Plus up to ₹20 lakh
Do you repay it?
Yes, or it takes equity
Type
Loan
Where
All of India
Current status
MUDRA's site has performance reports for 2025-26 and a notice on the Tarun Plus ₹20 lakh limit. No end date or window is published. Applications go through lenders year round.
Who can apply
- Indian citizen with a plan for a non-farm income activity
- Credit need up to ₹20 lakh
- Aimed at non-corporate small businesses such as proprietorships and partnerships
- Tarun Plus only after repaying an earlier Tarun loan
How to apply
- 1Approach a bank, NBFC or microfinance lender near you
- 2Or apply online through Udyamimitra or Jan Samarth
- 3The lender applies its own terms and interest rate
The catch
MUDRA's own site targets non-corporate businesses, so a private limited startup should ask the lender first, as the Startup India playbook says otherwise. MUDRA warns it uses no agents, and interest is set by the lender.
We read this on the official page on 4 November 2026. Rules and dates change, so confirm there before you apply. Founders Wing is not connected to this scheme, does not help with applications and never charges for access to it.