About this employment scheme
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.
Programme snapshot
| Scheme Name | PM MUDRA Tarun Plus 2026 — New ₹20 Lakh Loan Category for Established MSMEs |
| Launched By | Government of India |
| Launch Year | 2024 |
| Benefit | 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 |
| Category | Employment |
| Last Verified | 4 September 2026 |
| Official Portal | https://mudra.org.in |
What workers 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
Which workers qualify
- ✓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 at enrolment
Registration process
- 1Visit any bank branch (SBI, PNB, Bank of Baroda, Canara, HDFC, Axis, etc.) or NBFC
- 2Request MUDRA Tarun Plus loan application form
- 3Submit documents + previous MUDRA loan repayment proof
- 4Bank assesses creditworthiness (CIBIL score 650+ preferred for Tarun Plus)
- 5No collateral required — CGTMSE (Credit Guarantee Fund) covers the bank's risk
- 6Loan sanctioned → disbursed to business account
Official Government Portal
Use mudra.org.in directly — there is no application fee, and no third party can speed up your approval.
🔗Apply on mudra.org.in