Under the Pradhan Mantri Mudra Yojana (PMMY), the government has introduced the ‘Tarun Plus’ category that raises the maximum loan limit from Rs. 10 lakh to Rs. 20 lakh. This higher limit is meant for entrepreneurs who have already taken and successfully repaid a previous ‘Tarun’ category loan.
Mudra loans are collateral-free and backed by the Credit Guarantee Fund for Micro Units (CGFMU). Interest rates are set by the lending bank and are not fixed by the government, so compare offers before applying.
Apply and check status only on the official portal.
How to apply for a Mudra (Tarun Plus) loan
- Keep your KYC and business documents ready (Aadhaar/PAN, address proof, Udyam registration, bank statements, project report).
- Visit the JanSamarth or Udyamimitra portal, or your preferred bank branch.
- Choose the business / Mudra loan option and select the Tarun Plus category if you have repaid a Tarun loan.
- Submit your application and track it using the reference number provided.
Official links
Related
FAQs
What is the new Mudra loan limit under Tarun Plus?
Under the Tarun Plus category, the maximum Mudra loan limit has been raised from Rs. 10 lakh to Rs. 20 lakh for entrepreneurs who have successfully repaid an earlier Tarun-category loan.
Are Mudra loans collateral-free?
Yes. Mudra loans are collateral-free and are backed by the Credit Guarantee Fund for Micro Units (CGFMU). Interest rates depend on the lending bank.
Who benefits most from Tarun Plus
Tarun Plus is designed for graduating entrepreneurs — borrowers who took a Tarun loan (₹5–10 lakh), repaid it successfully, and now need bigger working capital or expansion funds. If that is you, the doubled ₹20 lakh ceiling means you may not need to shift to costlier business loans yet.
How to use the higher limit wisely
- Borrow against a concrete expansion plan — new machinery, additional stock, a second outlet — not just because the limit exists
- Interest is charged only on what you draw if structured as working capital/Mudra card
- Your repayment record on the earlier Tarun loan is the main approval factor — keep the account clean
- Compare 2–3 lenders; rates and margin requirements vary bank to bank
How to apply
Apply at the bank that handled your previous Tarun loan (fastest, since they have your history) or through udyamimitra.in. Full process, documents and tips: Mudra loan apply online.