# MSME Loan Advisory — MUDRA & CGTMSE

> Small businesses can borrow without collateral through MUDRA loans — Shishu (up to ₹50,000), Kishore (up to ₹5 lakh), Tarun (up to ₹10 lakh) and Tarun Plus (up to ₹20 lakh for those who repaid a Tarun loan) — and through bank loans covered by CGTMSE guarantees. Udyam registration, clean books and GST returns, and a clear repayment plan are what lenders check.

Practice: Corporate Finance & Valuation — https://www.industax.com/services/corporate-finance/

Loans are sanctioned by banks and NBFCs, not by the scheme websites, so the application quality and your banking history decide the outcome. Beware of agents promising guaranteed sanctions for fees.

We prepare the financials, projections and application for your bank, and register Udyam if needed.

## Key facts

| Item | Detail |
| --- | --- |
| MUDRA | Shishu ≤ ₹50k; Kishore ≤ ₹5L; Tarun ≤ ₹10L; Tarun Plus ≤ ₹20L |
| CGTMSE | Credit guarantee for collateral-free MSE loans |
| Prerequisite | Udyam registration usually expected |
| Lender | Banks and NBFCs |

## Who needs this

- Micro and small businesses
- First-time borrowers
- Businesses without collateral

## What's included

- Eligibility review
- Udyam registration
- Financials and projections
- Application support

## Documents

- KYC and business proof
- Bank statements
- ITRs and GST returns
- Quotations for assets

## Process

1. **Assess** — Scheme and loan size matched.
2. **Prepare** — Financials and application.
3. **Apply** — Submitted to the lender.

## FAQs

### Is a MUDRA loan given by the government directly?

No. MUDRA loans are given by banks, NBFCs and MFIs under the scheme; the government agency refinances and supports lenders.

### What is Tarun Plus?

A category introduced in 2024 for loans above ₹10 lakh up to ₹20 lakh for entrepreneurs who have availed and repaid a Tarun loan.

### Does CGTMSE coverage cost anything?

An annual guarantee fee is charged, usually passed on to the borrower by the lender.

## Official sources

- MUDRA: https://www.mudra.org.in/
- CGTMSE: https://www.cgtmse.in/

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Canonical page: https://www.industax.com/services/corporate-finance/msme-loan-advisory
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.