Official Source
Ministry of Finance / SIDBI
The Pradhan Mantri Mudra Yojana (PMMY) has been enhanced with a new "Tarun Plus" category, increasing the maximum loan limit to ₹20 lakh. This decision was announced to provide greater financial support to micro-enterprises that have successfully repaid their previous Mudra loans and are ready to scale up.
Mudra Loan Categories — Revised
Shishu: Up to ₹50,000
Kishor: ₹50,001 to ₹5 lakh
Tarun: ₹5 lakh to ₹10 lakh
Tarun Plus (New): ₹10 lakh to ₹20 lakh
- ▸For startups and very early-stage businesses
- ▸No collateral required
- ▸Interest rate: Generally 1–1.5% per month depending on lender
- ▸For businesses that have already established operations
- ▸Some basic financial documentation required
- ▸For well-established micro businesses
- ▸Better credit history required
- ▸For borrowers who have successfully repaid Tarun category loans
- ▸Enhanced documentation and purpose verification required
Who Can Apply
Any non-farm sector micro enterprise:
- ▸Proprietorships, partnership firms, private limited companies
- ▸Artisans, small traders, vegetable vendors, shopkeepers
- ▸Small manufacturing units, food processing, handicrafts
- ▸Transport operators (small trucks, auto-rickshaws)
- ▸Service sector micro businesses
How to Apply
Mudra loans are provided through:
Process:
- ▸Public sector banks and private sector banks
- ▸Regional Rural Banks (RRBs)
- ▸Small Finance Banks and MFIs
- ▸NBFCs registered with RBI
- ▸Approach your nearest bank branch or apply online through bank's website
- ▸Submit business plan, identity/address proof, bank statements (6 months)
- ▸Bank processes and sanctions the loan
- ▸Loan disbursal directly to business account
Additional Scheme Benefits
- ▸Credit Guarantee: Loans up to ₹10 lakh covered under MUDRA Credit Guarantee
- ▸No Collateral: No collateral or third-party guarantee for loans up to ₹10 lakh
- ▸Mudra Card: Working capital component issued as Mudra Rupay Debit Card
- ▸Women Entrepreneurs: Priority in loan sanctioning and marginally lower interest rates
- ▸Subsidy Schemes: Mudra loans under certain government schemes may qualify for interest subvention
Scheme Statistics and Success Rate
Since inception in 2015:
- ▸Over 40 crore loans sanctioned totalling ₹23+ lakh crore
- ▸68% of beneficiaries are women
- ▸SC/ST/OBC/Minority communities are priority beneficiaries
- ▸NPA rates historically low at 3–4% due to social accountability mechanisms
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