The company said the loans will be available across the four Mudra categories — Shishu, Kishore, Tarun and Tarun Plus — and will target small businesses, artisans, rural entrepreneurs and first-time borrowers.
The move is aimed at expanding access to formal credit for micro enterprises, particularly borrowers who have limited access to organised sources of finance, according to HDBFS.
Under the Mudra framework, loans are intended to support income-generating activities among micro and small businesses. The categories are differentiated by the size and stage of the loan, with Tarun Plus covering loans of more than ₹10 lakh and up to ₹20 lakh for eligible borrowers who have successfully repaid earlier Tarun loans.
HDBFS said the Mudra loans will be used for working capital and business expansion. The company plans to use its distribution network to extend the scheme across geographies and customer segments.
“Our participation reflects our commitment to expanding credit access to Bharat and supporting small businesses and entrepreneurs who are contributing to local economies,” G. Ramesh, MD and CEO, HDB Financial Services, said.
HDBFS is a non-deposit-taking NBFC and a subsidiary of HDFC Bank. The company said its distribution network stood at 1,710 branches across 1,165 cities and towns as of June 30, 2026.