LoanMinistry of Finance / RBIVerified 7 May 2026Official source

Pradhan Mantri MUDRA Yojana — Tarun Plus Category

Announced in Union Budget 2024-25, MUDRA Tarun Plus extends collateral-free loans up to ₹20L (up from ₹10L) for micro and small businesses that have previously availed and successfully repaid a MUDRA Tarun loan. This is a loan — repayment required. Interest rates typically 10–12% p.a. No processing fee at most lenders. Mandatory credit guarantee cover under CGTMSE.

Maximum amount
₹20.0L
Typical payout
₹15.0L
Processing time
2–6 weeks

Eligibility criteria

Company type
Private Limited, LLP, One Person Company, Proprietorship, Partnership Firm
Stage
Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr)
States
All India (nationwide)
Sectors
SaaS / Software, AI / ML, Fintech, Healthtech, Edtech, D2C / E-commerce, Manufacturing, Food Processing, Agritech, Cleantech / EVs, Logistics, Retail, Textile, Pharma, Biotech, Chemicals, Engineering, Media / Content, Other
Prerequisites
  • Udyam (MSME) registration required

Documents required

1
Prior MUDRA loan closure certificate
From previous lender confirming full repayment
Tip: This is the key eligibility proof — get it before approaching a new lender
2
Aadhar card
3
PAN card
4
6-month bank statements
Tip: Must show repayment of prior MUDRA loan
5
Business proof
Shop act, Udyam Registration Certificate, GST registration, and Trade License.
6
(If Applicable) Asset/Liability Statement
A statement of assets and liabilities of the borrower/partners.
7
(If Applicable) Purchase Quotations
Detailed quotations from suppliers for machinery or equipment to be purchased.
8
(If Applicable) Specific Category Identification
Proof of SC/ST/OBC/Minority status if seeking specific category benefits.

How to apply for MUDRA Tarun Plus

1
Obtain closure certificate for your prior MUDRA Tarun loan from the original lender
2
Approach any scheduled bank, NBFC-MFI, or MFI and request MUDRA Tarun Plus loan
3
Submit application with prior repayment proof, bank statements, and business documents
4
Loan sanctioned typically within 2–4 weeks; MUDRA card issued for utilisation

Does your startup qualify for MUDRA Tarun Plus?

Answer a few questions about your company and get a personalised eligibility report across all active government schemes — including MUDRA Tarun Plus.

Check your eligibility — free

Frequently asked questions

Who is eligible for MUDRA Tarun Plus?

MUDRA Tarun Plus is available to Private Limited, LLP, One Person Company, Proprietorship, Partnership Firm companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr) stage, across all Indian states (nationwide). Udyam (MSME) registration is required.

How much funding does MUDRA Tarun Plus provide?

MUDRA Tarun Plus provides up to ₹20.0L. Most applicants receive around ₹15.0L. This is a loan product — repayment is required.

How long does MUDRA Tarun Plus approval take?

The typical processing time from submission to disbursement is 2–6 weeks.

Is MUDRA Tarun Plus currently accepting applications?

Yes, MUDRA Tarun Plus is currently active and accepting applications.

Do I need Udyam registration for MUDRA Tarun Plus?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

Information is based on publicly available scheme guidelines. Last verified 7 May 2026. Always verify with official sources before applying.