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PM MUDRA Tarun Plus — ₹20 Lakh Loan

PM MUDRA Tarun Plus 2026 — New ₹20 Lakh Loan Category for Established MSMEs | mudra.org.in

2026 ✓EmploymentLoans ₹10 lakh to ₹20 lakh without collateral for established micro enterprises + Low interest rates (8-12% typically) + No collateral/guarantee required + Available from 50,000+ lending institutions nationwideLaunched: 2024Updated: May 2026
2 min read
Reviewed by Schemes In India Editorial Team · Last verified: 25 May 2026

PM MUDRA Tarun Plus — ₹20 Lakh Loan — Quick Overview

Scheme NamePM MUDRA Tarun Plus 2026 — New ₹20 Lakh Loan Category for Established MSMEs | mudra.org.in
Launched ByGovernment of India
Launch Year2024
BenefitLoans ₹10 lakh to ₹20 lakh without collateral for established micro enterprises + Low interest rates (8-12% typically) + No collateral/guarantee required + Available from 50,000+ lending institutions nationwide
CategoryEmployment
Last Verified25 May 2026
Official Portalhttps://mudra.org.in

What is PM MUDRA Tarun Plus — ₹20 Lakh Loan?

PM MUDRA Yojana's Tarun Plus category was introduced in the Union Budget 2024-25 to serve established micro and small enterprises that have successfully repaid previous MUDRA Tarun loans (₹5-10 lakh) and need higher credit to scale up. The new Tarun Plus category offers loans from ₹10 lakh to ₹20 lakh — filling the gap between the existing Tarun (max ₹10 lakh) and formal SME loans (which require collateral). Original MUDRA categories: Shishu (up to ₹50,000), Kishor (₹50,001-5 lakh), Tarun (₹5-10 lakh). Tarun Plus (₹10-20 lakh) is available to enterprises that have a satisfactory repayment track record on previous MUDRA loans, showing responsible credit behaviour. All banks, NBFCs, MFIs, RRBs, and Small Finance Banks offer MUDRA loans including Tarun Plus. Purpose: working capital, machinery purchase, business expansion — NOT for personal expenses.

Under this scheme, eligible beneficiaries receive Loans ₹10 lakh to ₹20 lakh without collateral for established micro enterprises + Low interest rates (8-12% typically) + No collateral/guarantee required + Available from 50,000+ lending institutions nationwide. The scheme was launched in 2024 and is implemented by the Government of India.

Benefits of PM MUDRA Tarun Plus — ₹20 Lakh Loan

Loans ₹10 lakh to ₹20 lakh without collateral for established micro enterprises + Low interest rates (8-12% typically) + No collateral/guarantee required + Available from 50,000+ lending institutions nationwide

Who is Eligible for PM MUDRA Tarun Plus — ₹20 Lakh Loan?

  • Existing micro or small enterprise with a satisfactory MUDRA loan repayment track record
  • Must have previously availed and repaid (or currently repaying) a MUDRA Tarun loan (₹5-10 lakh)
  • Business must be operational for at least 2-3 years
  • Business should be in manufacturing, trading, or services (NOT agriculture land purchase or personal expenses)
  • No NPA (Non-Performing Asset) history on any bank loan

Documents Required for PM MUDRA Tarun Plus — ₹20 Lakh Loan

0/6 documents ready

How to Apply for PM MUDRA Tarun Plus — ₹20 Lakh Loan Online?

  1. 1Visit any bank branch (SBI, PNB, Bank of Baroda, Canara, HDFC, Axis, etc.) or NBFC
  2. 2Request MUDRA Tarun Plus loan application form
  3. 3Submit documents + previous MUDRA loan repayment proof
  4. 4Bank assesses creditworthiness (CIBIL score 650+ preferred for Tarun Plus)
  5. 5No collateral required — CGTMSE (Credit Guarantee Fund) covers the bank's risk
  6. 6Loan sanctioned → disbursed to business account
🏛️

Official Government Portal

Apply directly on the official government website. This is the only authorised portal — never pay anyone to apply on your behalf.

🔗Apply on mudra.org.in
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Frequently Asked Questions — PM MUDRA Tarun Plus — ₹20 Lakh Loan

MUDRA Tarun: ₹5 lakh to ₹10 lakh — for micro enterprises with some track record. MUDRA Tarun Plus (new, Budget 2024): ₹10 lakh to ₹20 lakh — specifically for enterprises that have already repaid MUDRA Tarun loans and want to scale further. Tarun Plus is a reward for responsible repayment behaviour — it gives graduating micro-entrepreneurs access to higher credit without needing to go to formal SME lending (which requires collateral). Think of it as a step-up ladder: Shishu → Kishor → Tarun → Tarun Plus → formal SME credit.

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