PMMY Tarun — MUDRA Loan ₹5 Lakh to ₹10 Lakh
By Ministry of Finance, Govt of India
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
Collateral-free business loan ₹5–₹10 lakh for established micro-enterprises scaling up
- Funding amount
- ₹5L – ₹10L
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this loan
The Tarun category under Pradhan Mantri MUDRA Yojana (PMMY) serves established micro-enterprises with a demonstrated track record that need ₹5 lakh to ₹10 lakh to scale operations, add machinery, expand to new markets, or manage seasonal working capital. No collateral is mandated; lenders assess the proposal on business merit and past repayment behaviour. Available through all MUDRA-empanelled lending institutions. Loan tenure and interest rates are determined by the lender within RBI's MSME lending guidelines.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
The Ministry of Finance is the apex ministry of the Government of India responsible for the country's economic and fiscal policy. Headquartered at North Block, New Delhi, it administers taxation, public expenditure, financial-sector regulation, capital markets and the Union…
Learn moreBenefits & Funding
- Amount
- ₹5L – ₹10L
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
PMMY Tarun provides collateral-free loans from ₹5,00,001 to ₹10 lakh for established micro-enterprises with a proven operational record. No physical security is mandated; the lender assesses your business on its merits and repayment history. Loan tenure and interest rates are set by the lender within RBI''s MSME guidelines.
Funds can be deployed across any non-farm income-generating use — adding machinery, scaling production capacity, entering new markets, or covering seasonal working capital requirements in manufacturing, services, or trading businesses.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Register or log in on the
Register or log in on the Jan Samarth portal (jansamarth.in) and select 'Business Loan' → 'Pradhan Mantri MUDRA Yojana'.
You - 2
- 3
- 4
- 5
- 6
- 7
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Who can apply for a PMMY Tarun loan?
Established non-farm micro-enterprises with a demonstrated operational track record that need ₹5 lakh to ₹10 lakh to scale can apply through any MUDRA-empanelled bank, RRB, MFI, or NBFC.
What is the loan range under Tarun?
₹5,00,001 to ₹10 lakh. For higher amounts (up to ₹20 lakh), the Tarun+ category is available for those who have previously repaid a MUDRA loan.
Is collateral required?
No collateral is mandated. Lenders evaluate your business merit and past repayment behaviour to assess the loan.
What can the loan be used for?
Adding machinery or equipment, expanding to new markets, managing seasonal working capital, or scaling any non-farm income-generating activity in manufacturing, services, or trading.
What are the interest rates and tenure?
Interest rates and loan tenure are determined by the lender within RBI''s MSME lending guidelines. There is no statutory cap at the Tarun tier — compare offers across lenders before applying.
How do I apply?
Apply at any MUDRA-empanelled scheduled commercial bank, RRB, MFI, or NBFC, or initiate your application online at jansamarth.in.
