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Under the PMMY scheme, banks, NBFCs, and MFIs provide collateral-free financial assistance to MSMEs through three products, including Shishu, Kishore, and Tarun.

 

Among them, Tarun loans provide maximum amounts as term or working capital loans. Read on to learn more about its features, the documents you require at the time of application, and more. 

Features of the Tarun Loan

Here are some of the notable characteristics of the Tarun loan provided under the Mudra scheme:

  • The loan amount available under this product ranges between ₹5 Lakhs and ₹10 Lakhs

  • Only income-generating MSMEs involved in non-farming and non-corporate sectors with a valid Udyam Registration Number (URN) are eligible for this loan

  • The interest rate on Tarun loan starts from 8% per annum and may vary depending on the lender’s guidelines

  • Tarun loans offer flexible repayment tenure, which can extend up to 7 years

  • The target segments for the Tarun lending scheme include women, OBCs, SCs, STs, and minorities

  • The scheme instructs lending institutions to provide preference for lending to certain sectors, such as food products, textiles, agriculture-allied services, etc.  

  • You do not need to provide collateral to get a Tarun loan

Documents Required for a Mudra Tarun Loan

Here is a list of documents you must furnish when availing of a Tarun loan:

  • Duly-filled Mudra scheme application form

  • Loan application form of the lending institution

  • Proof of identity

  • Proof of residence

  • Proof of business existence, ownership, and continuity

  • Balance sheet for the last two years

  • Estimated balance sheet for the next financial year or the loan tenure

  • Income tax returns

  • Sales tax statement

  • Bank account statements

  • Trade references

  • Record of sales made in the current financial year

  • Caste certificate for OBCs, SCs and STs

  • A well-documented business plan 

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How to Apply for a Mudra Tarun Loan

You can easily apply for Tarun loans under the Mudra scheme online or offline. Here are the steps you need to follow to apply for this financial product online:

  • Step 1: Visit the official website of the preferred lender and download the application form for the Mudra Tarun Loan

  • Step 2: Fill in the relevant details and enter KYC details, such as information related to your Aadhaar card, voter’s ID, and more

  • Step 3: Provide details about your business, including its purpose, income tax, and sales-related information

  • Step 4: Select a suitable loan amount and repayment tenure

  • Step 5: Click on the ‘Submit’ once you have carefully understood the loan terms and agreement 

  • Step 6: The bank will review your application and approve it if you and your business meet the eligibility requirements

Annual Reports of the Mudra Tarun Loan

The following table presents the amount that banks sanctioned as Tarun loans under the Mudra Yojana in different FYs since its inception:

Financial Year

Number of Loan Accounts

Amount of Loan Sanctioned (in Crores)

2015-16

4,10,000

₹29,854

2016-17

5,39,732

₹41,882.66

2017-18

8,06,924

₹60,943.36

2018-19

17,56,871

₹74,990.86

2019-20

12,85,116

₹78,358

2020-21

10,68,771

₹79,290

2021-22

9,86,166

₹76,718.61

FAQs on the Mudra Tarun Loan

Which lending institutions provide Tarun Mudra loans?

Over 200 banks, NBFCs and MFIs, with their branches spread across India, provide Tarun MUDRA loans.

Can I get a Tarun loan from the Mudra agency?

No, Mudra is a refinancing agency that provides funds to last-mile financiers. You can get a Tarun loan from Scheduled Commercial Banks, Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs).

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