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If you are an MSME owner who is looking to start a business or expand it, a Mudra Tarun loan can come to your rescue. Given as a part of the Pradhan Mantri Mudra Yojana, the Mudra Tarun loan can help you secure funding of anywhere between ₹5 to ₹10 lakhs. You can use this money to set up a new business, expand your operations or even meet heavy working capital requirements. This article will take a deep dive into the Mudra Tarun loan variant and tell the reader everything they need to know about it.

Features of the Mudra Tarun Loan

Some of the features of the Mudra Tarun loan are as follows:

  • Tarun loans are granted to MSMEs who want to expand/upscale their operations, require a high amount of start-up capital, or to meet their working capital needs.

  • Funding of anywhere between ₹5 Lakhs to ₹10 Lakhs can be availed as a Tarun loan.

  • The borrower can repay the sanctioned amount within the timeframe of 3 to 5 years.

  • The applicable processing fees for Tarun loans do not go beyond 0.5% of the approved amount.

  • The interest rate charged to Tarun loan borrowers generally does not exceed 12% per annum.

  • One does not need to offer any kind of collateral to get a Mudra Tarun loan.

Documents Required for Mudra Tarun Loan

The documents that you will require to get a Tarun loan as an MSME are:

  • Identity Proof such as a Voter ID card, PAN Card, Aadhaar Card, Driver’s Licence, Passport or any other government-issued photo ID.

  • Residence Proof such as telephone/electricity bills/property tax receipts that should not older than 2 months/Aadhar Card/Voter ID/Passport/Bank passbook or account statements or domicile certificates issued by the concerned local body

  • Two recent photographs which should not be older than six months.

  • Balance sheets for the business with respect to the past two financial years

  • Income tax and sales tax returns

  • Bank account statements going back 6 months

  • Estimated balance sheet for the upcoming 1 year or for the required loan duration.

  • Memorandum of association (MaA) and articles of association (AoA), if applicable.

  • Sales figures of the current financial year before applying for the Tarun Mudra Loan

  • Reports explaining the economic and technical sustainability of the business

  • Proof of the Identity/Address of the business or enterprise along with copies of relevant licences and registration of ownership.

  • Proof of category such as SC/ST/OBC (if applicable)

Application Process for Mudra Tarun Loans

To apply for a Mudra Tarun loan, you must follow the steps mentioned below:

  • Step 1: Visit the Udyami Mitra online portal at https://udyamimitra.in/ and click on the ‘Apply Now’ button.

  • Step 2: Select the type of borrower that you are and fill in the required information on the following page. To proceed, you must complete this step by verifying your mobile number with a one-time password (OTP) sent to your phone number.

  • Step 3: The following page will require you to key in your personal and professional details to move forward.

  • Step 4: Once you do so, you will be greeted with a welcome message, around which you will see an ‘Apply Now’ button. Click on it and then select ‘Tarun’ on the following page to move on to the next step.

  • Step 5: Fill in details regarding your enterprise, such as the sector you operate in, the reason for the loan, required funds, and your lender of choice. To conclude this step, upload the required documents and click on ‘Submit’.

  • Step 6: Finally, you will see a declaration page. Tick on the appropriate checkboxes to complete the Mudra Tarun loan application process.

To apply for the Tarun loan through the offline method, you will need to visit a commercial or private sector bank and submit the downloaded and duly filled Mudra loan application form with all the required documents. Once your documents have been verified, you will receive the loan amount in the bank account that you have mentioned. Note that along with the required documents, you will also need to submit a self-written business plan as well.

Annual Reports of Mudra Tarun Loan

The Indian government has aided several MSME owners such as yourself to achieve their business goals through Mudra Tarun loans. Take a look at the Tarun loan amount disbursals and loan accounts opened every financial year since the launch of the Pradhan Mantri Mudra Yojana.

Financial Year

Number of Loan Accounts

Total Amount Sanctioned
(₹ crore)

FY 2015-16

4,10,417

29,853

FY 2016-17

5,39,732

41,882

FY 2017-18

8,06,924

60,943

FY 2018-19

17,56,871

74,990

FY 2019-20

12,85,116

78,359

FY 2020-21

10,68,771

79,290

Conclusion

Mudra Tarun loans can come to the rescue of an MSME owner at a time when they are running short of the necessary funds. Tarun loans can even help the proprietor with the funds they require to survive a tough economic environment. If an individual is unable to secure a Mudra Tarun loan, he/she can always apply for a business loan through Bajaj Markets. The lending partners of Bajaj Markets offer business loans at competitive interest rates and flexible loan terms.