Overview
Collateral-free loans for non-farm micro and small enterprises through banks, NBFCs and MFIs under the Shishu, Kishore, Tarun and Tarun Plus categories.
Why it matters for founders
Use this scheme together with other Startup India and MSME benefits. Our community experts can help you prepare documents and a strong application.
Key benefits
Shishu: loans up to ₹50,000
Kishore: loans above ₹50,000 and up to ₹5 lakh
Tarun: loans above ₹5 lakh and up to ₹10 lakh
Tarun Plus: up to ₹20 lakh for successful Tarun borrowers
No collateral required; covered under the Credit Guarantee Fund for Micro Units
Eligibility
- Indian citizen with a business plan for a non-farm income-generating activity (manufacturing, trading, services or allied agriculture)
- Micro or small enterprise with credit need within the Mudra loan limits
- Not a defaulter to any bank or financial institution
- Tarun Plus: borrowers who have availed and repaid a previous Tarun loan
Who should apply
- Early-stage founders who meet the eligibility above and have their documents ready
- Businesses that need this type of support (grant, loan or subsidy) in the next 6–12 months
- Applicants who can show a clear plan for how the money or benefit will be used
How to apply
- 1
Prepare a simple business plan with the loan amount you need
- 2
Approach any bank, NBFC or MFI branch, or apply online on the JanSamarth / Udyamimitra portal
- 3
Submit the application with KYC and business documents
- 4
The lender appraises your proposal and sanctions the loan
Documents checklist
0 of 5 readyTick each document as you collect it — your ticks are saved on this device.
Common mistakes to avoid
- Applying before checking every eligibility condition
- Uploading unclear, unsigned or expired documents
- Using different business names or addresses across documents
- Paying agents who promise guaranteed approval — government applications are free
- Missing the deadline or not tracking the application status
Frequently asked questions
Who can apply for Pradhan Mantri Mudra Yojana?
Where do I apply?
Is the information on this page official?
Similar schemes
Credit Guarantee Fund Trust for Micro and Small Enterprises
Guarantee cover to banks so micro and small enterprises can get term loans and working capital without collateral or third-party guarantee.
Credit Guarantee Scheme for Startups
Guarantee cover on loans given by banks, NBFCs and venture debt funds to DPIIT-recognised startups, so founders can borrow without collateral.
Stand-Up India
Bank loans between ₹10 lakh and ₹1 crore for at least one SC/ST borrower and one woman borrower per bank branch to set up a greenfield enterprise.
Prime Minister's Employment Generation Programme
Credit-linked subsidy for setting up new micro-enterprises in manufacturing and service sectors, with higher subsidy for special categories and rural areas.
