Tarun Loan

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. 

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

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

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