SIDBI (Direct Financing)Term Loan (Capex / Expansion)Small Enterprise (Investment ≤ ₹10 Cr)Verified: 2026-09-29

Pradhan Mantri MUDRA Yojana - Tarun Tier Loan

Primary Lending Institution:Small Industries Development Bank of India (SIDBI)

Business scaling credit from ₹5 Lakh to ₹10 Lakh without real estate mortgage under MUDRA.

Connected Central Government Scheme: Pradhan Mantri MUDRA Yojana - Tarun Tier (Expansion Loans ₹5,00,001 to ₹10,00,000)View Government Scheme Guidelines →

Interest Rate9.00% – 11.75%Linked to EBLR / MCLR / Risk

Loan Amount Quantum₹5,00,001 to ₹10,00,000Based on turnover & project cost

Repayment TenureUp to 7 yearsWith moratorium where applicable

Collateral SecurityNo collateral or third-party guarantee required; primary security on assets created

What's Missing: Crucial Fine-Print & Exclusion Gaps

Requires 2 years audited/CA-certified financial statements and projected cash flows. Promoter margin contribution of 15% is mandatory.

Note: Eligo publishes these regulatory and commercial exclusions directly from bank product guidelines and CGTMSE rules to protect MSME applicants from unexpected fee debits or loan rejection surprises.

What is Pradhan Mantri MUDRA Yojana - Tarun Tier Loan?

Expansion-level financing under PMMY for established small business enterprises requiring ₹5 Lakh to ₹10 Lakh for modernizing facilities or scaling working capital.

Key Benefits & Features

Credit up to ₹10 Lakh without physical property mortgage; repayment extended up to 7 years; composite term loan and cash credit structure.

Government Subsidy & Credit Guarantee Coverage

CGFMU guarantee coverage; Hypothecation of plant, machinery & stocks

Enterprise Eligibility Criteria

Operational small enterprises with minimum 2 years profitable operations, valid Udyam Registration, and GST filing record.

Business Vintage2+ Years in Operation

Min. Annual Turnover₹5.0 Lakh

Processing Fee0.50% of loan amount + GST

Prepayment TermsZero prepayment penalty on floating rate loans

How to Apply (3 Verified Paths)

💼Path 1: Current Account Portal

Submit expansion project balance sheets to existing banker.

🌐Path 2: Official FinTech / Govt Portal

Apply at psbloansin59minutes.com with GSTIN and bank statement upload.

🏢Path 3: SME Banking Center Walk-In

Visit SME branch of commercial bank with 2 years financial statements.

Eligo does not collect business loan applications or financial data. Apply directly on the verified official domain:

Visit Official Portal↗

Documents Required Checklist

Udyam Registration, Last 2 years ITR and balance sheet, 12 months GST returns, 6 months bank statement, Projected financial statement for loan tenure.

Frequently Asked Questions

Can Tarun tier loan be split into term loan and cash credit?

Yes, banks routinely structure Tarun loans as a composite facility (e.g. ₹6 Lakh term loan for machinery and ₹4 Lakh cash credit for raw material working capital).

What is the maximum tenure for Tarun tier?

The maximum repayment tenure is up to 7 years (84 months) including a moratorium period of 6 to 12 months for machinery installation.

Is GST registration mandatory for Tarun tier?

For enterprises with annual turnover exceeding statutory GST limits (₹40 Lakh for goods, ₹20 Lakh for services), GST registration is mandatory.

What CIBIL score is expected for Tarun tier?

Most lending banks require a minimum commercial/individual CIBIL score of 675 for sanctioning Tarun tier loans.