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
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 required
- Identity and address proof (Aadhaar, PAN)
- Business plan / project report
- Quotations for machinery or items to be purchased
- Proof of business address and category certificate (if applicable)
- Bank statements (for existing businesses)
Frequently asked questions
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