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

Pradhan Mantri MUDRA Yojana - Tarun Plus Tier (₹20 Lakh Limit)

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

Enhanced MUDRA loan up to ₹20 Lakh for entrepreneurs with successful prior Tarun repayment history.

Connected Central Government Scheme: Pradhan Mantri MUDRA Yojana - Tarun Plus Tier (Enhanced Credit ₹10 Lakh to ₹20 Lakh)View Government Scheme Guidelines →

Interest Rate9.15% – 11.50%Linked to EBLR / MCLR / Risk

Loan Amount Quantum₹10,00,001 to ₹20,00,000Based on turnover & project cost

Repayment TenureUp to 7 yearsWith moratorium where applicable

Collateral SecurityNil third-party collateral; hypothecation of business assets

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

Restricted strictly to borrowers who have successfully availed and fully repaid/serviced a previous Tarun tier MUDRA loan with a flawless track record.

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 Plus Tier (₹20 Lakh Limit)?

Enhanced MUDRA category introduced in Union Budget 2024 raising the collateral-free credit ceiling to ₹20 Lakh for entrepreneurs who previously availed and successfully repaid Tarun tier loans.

Key Benefits & Features

Double the traditional MUDRA credit limit (up to ₹20 Lakh); zero immovable property mortgage; fast-track processing for proven borrowers.

Government Subsidy & Credit Guarantee Coverage

Enhanced credit guarantee coverage under CGFMU up to ₹20 Lakh

Enterprise Eligibility Criteria

Entrepreneurs who previously availed Tarun loans and maintained 100% timely repayments, having active Udyam and GST registration.

Business Vintage3+ Years in Operation

Min. Annual Turnover₹15.0 Lakh

Processing Fee0.50% + GST

Prepayment TermsZero prepayment penalty on floating rate loans

How to Apply (3 Verified Paths)

💼Path 1: Current Account Portal

Request Tarun Plus facility enhancement from your original lending bank.

🌐Path 2: Official FinTech / Govt Portal

Apply at psbloansin59minutes.com providing prior Tarun loan closure certificate.

🏢Path 3: SME Banking Center Walk-In

Visit your commercial bank branch with prior Tarun loan repayment statements.

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

Visit Official Portal↗

Documents Required Checklist

Prior MUDRA Tarun loan no-dues or track certificate, 2 years audited balance sheets, 12 months GST returns, Udyam certificate, CMA data.

Frequently Asked Questions

Who is eligible for the new ₹20 Lakh Tarun Plus tier?

Only entrepreneurs who have previously availed a Tarun tier loan under PMMY and successfully repaid it without any default are eligible for Tarun Plus.

When was the Tarun Plus tier introduced?

It was officially announced by Union Finance Minister in the Union Budget 2024-25 and operationalized via DFS guidelines.

Is collateral required for loans up to ₹20 Lakh under Tarun Plus?

No. The credit guarantee window of CGFMU was statutory expanded to cover up to ₹20 Lakh with zero real estate collateral.

Can Tarun Plus be used for service businesses?

Yes, both manufacturing and service enterprises that meet the prior track record condition are fully eligible.