Loans above ₹5 lakh and up to ₹10 lakh for growing micro enterprises to scale up.
Ministry of Finance (Department of Financial Services)
💰 Benefit: Collateral-free loan above ₹5 lakh and up to ₹10 lakh. After successful repayment, eligible for Tarun Plus (₹10–20 lakh).
Always verify eligibility on the official website before applying. Scheme rules may change. Facts last checked against the official source on 15 October 2026.
Tarun covers loans above ₹5 lakh and up to ₹10 lakh. If you repay a Tarun loan successfully, you can apply under Tarun Plus for ₹10 lakh to ₹20 lakh.
Tarun Plus is a category started on 24 October 2024 for loans above ₹10 lakh and up to ₹20 lakh. It is only for borrowers who have availed and successfully repaid a Tarun loan.
PMMY sets no age or income limit. Any Indian citizen eligible to borrow, with a business plan for a non-farm income-generating activity, can apply, subject to the lender's norms.
No. Mudra loans are collateral-free, and the Credit Guarantee Fund for Micro Units (CGFMU) gives guarantee cover to lenders.
You need the application form, identity proof, address proof, bank statements and any statutory returns or other papers the lender asks for. PAN is not compulsory, but you must meet the lender's KYC rules.
There is no fixed government rate. Rates are deregulated, and lenders set reasonable rates within RBI guidelines.