PMMY Tarun+ — MUDRA Loan ₹10 Lakh to ₹20 Lakh
By Ministry of Finance, Govt of India
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Quick Answer
Collateral-free business loan ₹10–₹20 lakh for micro-enterprises with strong repayment track record
- Funding amount
- ₹10L – ₹20L
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this loan
The Tarun+ category is the highest tier under Pradhan Mantri MUDRA Yojana (PMMY), introduced to bridge the gap between micro-enterprise credit and formal MSME loans. Provides ₹10 lakh to ₹20 lakh to micro-entrepreneurs who have previously availed and successfully repaid a MUDRA loan at a lower tier. No collateral required, but a proven repayment history under PMMY is typically expected by lenders. Covers all non-farm income-generating activities including manufacturing, services, trading, and tourism (homestays are explicitly included). Apply through any MUDRA-empanelled scheduled bank or NBFC.
Eligibility
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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
- ₹10L – ₹20L
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
PMMY Tarun+ is the highest tier under Pradhan Mantri MUDRA Yojana, offering collateral-free loans from ₹10,00,001 to ₹20 lakh for micro-entrepreneurs who have demonstrated creditworthiness through prior MUDRA loan repayment. No physical security is required; the MUDRA guarantee backstops the lender.
Funds can be deployed across all non-farm income-generating activities — manufacturing, services, trading, and tourism (including homestays). Loan tenure and interest rates are determined by the empanelled lender within RBI''s MSME lending guidelines. This tier bridges the gap between micro-enterprise credit and formal MSME bank loans.
- 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'.
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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 is eligible for the PMMY Tarun+ loan?
Non-farm micro-entrepreneurs who have previously availed and successfully repaid a MUDRA loan at a lower tier (Shishu, Kishore, or Tarun) and now need ₹10 lakh to ₹20 lakh to scale further. All non-farm income-generating activities — including manufacturing, services, trading, and tourism (homestays explicitly included) — are covered.
What is the loan range under Tarun+?
₹10,00,001 to ₹20 lakh. This is the highest tier under PMMY and bridges micro-enterprise credit with formal MSME financing.
Is a prior MUDRA loan mandatory?
A proven repayment history under PMMY is typically expected by lenders for the Tarun+ category. Most lenders require you to have successfully repaid a previous MUDRA loan before sanctioning Tarun+.
Is collateral required?
No collateral is required. The MUDRA guarantee backs the lender, removing the need for property or asset security from the borrower.
Can homestay and tourism businesses apply?
Yes. Tourism businesses, including homestays, are explicitly included under the Tarun+ eligible activity list.
How do I apply?
Apply at any MUDRA-empanelled scheduled bank or NBFC, or use the Jansamarth portal at jansamarth.in to initiate your application digitally.
News
- HDB Financial Services enters Mudra loan scheme, to offer collateral-free loans up to ₹20 lakhcnbctv18.com · last month
Source: Google News aggregated
