Government loan schemes

MUDRA loan

Business loans of up to ₹20 lakh with no collateral, for small non-farm businesses, in four sizes: Shishu, Kishore, Tarun and Tarun Plus.

Check if you qualify, free ↓

Largest loan

₹20 lakh (Tarun Plus)

Shishu

Up to ₹50,000

Kishore

Above ₹50,000 to ₹5 lakh

Tarun

Above ₹5 lakh to ₹10 lakh

Tarun Plus

Above ₹10 lakh to ₹20 lakh

Collateral

None needed

Who can apply

• Small non-farm businesses that are not companies: a proprietor, a partnership, a shop, a workshop, a small manufacturer or a service business.
• Manufacturing, processing, trading and services, and activities allied to agriculture.
• Tarun Plus, above ₹10 lakh, only if you have taken a Tarun loan before and repaid it in full.

Not open to

• Companies: MUDRA is for non-corporate businesses.
• Crop farming itself.
• A borrower in default with a bank.

What you get

A loan of up to ₹20 lakh with no collateral, under RBI norms. The lender sets the interest rate and decides each loan.

Examples

What the scheme rules say for a few typical cases. The checker below runs the same rules on yours.

• ₹40,000 for a sewing machineOpen

  Yes: this is a Shishu loan. Shishu (up to ₹50,000), with no collateral.

• ₹3 lakh to stock a kirana shopOpen

  Yes: this is a Kishore loan. Kishore (₹50,000 to ₹5 lakh), with no collateral.

• ₹8 lakh for a small bakery's ovensOpen

  Yes: this is a Tarun loan. Tarun (₹5 to ₹10 lakh), with no collateral.

• ₹15 lakh, first MUDRA loanNot open

  Tarun Plus is only for repeat borrowers.

• ₹15 lakh, after repaying a Tarun loanOpen

  Yes: this is a Tarun Plus loan. Tarun Plus (₹10 to ₹20 lakh), with no collateral.

• ₹30 lakh for a small factoryNot open

  MUDRA stops at ₹20 lakh.

How to apply

1. Work out how much you need and what for. The amount decides the tier.
2. Keep your identity and address proof, and quotations for what you will buy.
3. Apply at a bank branch, regional rural bank, small finance bank, NBFC or microfinance institution.

Check if you qualify

A few questions about you and the business. You will see MUDRA loan first, and the other schemes beside it.

Questions people ask

How much can I borrow under MUDRA?

Up to ₹20 lakh. Shishu: up to ₹50,000; Kishore: above ₹50,000 to ₹5 lakh; Tarun: above ₹5 lakh to ₹10 lakh; Tarun Plus: above ₹10 lakh to ₹20 lakh.

Do I need collateral for a MUDRA loan?

No. MUDRA loans, up to ₹20 lakh, are collateral-free under RBI norms.

Who can get a Tarun Plus loan?

Only someone who took a Tarun loan and repaid it in full. A first-time borrower can get up to ₹10 lakh under Tarun.

Where do I apply for a MUDRA loan?

At a bank branch, regional rural bank, small finance bank, NBFC or microfinance institution. The lender decides the loan and sets the rate.

From the scheme's official page, checked on 9 November 2026. Rules change; the bank still decides each loan.