- Loan amount: Offers funding from Rs. 5 lakhs to Rs. 10 lakhs to support business growth.
- Purpose: Suitable for business expansion, purchasing equipment, and meeting working capital needs.
- Collateral-free: No collateral or security is required, making it accessible for small business owners.
- Interest rate: Competitive interest rates based on the applicant's profile and bank policies.
- Repayment tenure: Flexible repayment period ranging from 3 to 5 years, depending on the borrower’s financial condition.
- Processing Fee: Minimal processing charges, which may vary across different banks.
- Quick disbursal: Streamlined application process ensures quick disbursement of funds.
- Credit guarantee: Coverage under the Credit Guarantee Fund for Micro Units (CGFMU) to mitigate the risk for lenders.
- Support for diverse sectors: Available to various sectors including manufacturing, trading, and services.
- Promotes financial inclusion: Aims to include small businesses in the formal banking sector, promoting financial stability.
Benefits of the Tarun Mudra Loan
- Boosts business growth: Provides necessary funds for expansion, enabling businesses to scale operations and increase profitability.
- Improves infrastructure: Helps in acquiring new machinery and technology, improving production efficiency and product quality.
- Working capital support: Ensures sufficient working capital, maintaining smooth business operations and avoiding financial bottlenecks.
- Easy accessibility: No collateral requirement makes it easy for small businesses to access credit.
- Encourages entrepreneurship: Supports new and existing entrepreneurs, fostering innovation and job creation.
- Economic development: Contributes to the overall economic growth by supporting the SME sector, which is a major employment generator.
- Credit history improvement: Timely repayments enhance the credit score of the borrowers, facilitating future borrowings.
- Customised solutions: Banks provide tailored loan solutions based on the unique needs of the business.
- Government backing: Being a government-backed scheme, it offers a sense of security and trust among borrowers.
- Wide reach: Available across multiple banks and financial institutions, ensuring wide accessibility.
Eligibility for the Tarun Mudra Loan
- Business type: Small and micro enterprises in the manufacturing, trading, and service sectors.
- Loan amount requirement: Businesses needing funding between Rs. 5 lakhs and Rs. 10 lakhs.
- Creditworthiness: Applicants should have a good credit history.
- Business plan: A viable and sustainable business plan is necessary.
- Age criteria: Applicant must be between 18 to 65 years old.
- Business existence: The enterprise should be operational and profitable for a minimum period as specified by the lender.
- Non-defaulter: Applicant should not be a defaulter with any financial institution.
Meeting these conditions ensures you fit within the Mudra loan eligibility framework for the Tarun category.
Documents required for a Tarun Mudra Loan
- Identity proof: Aadhaar Card, PAN Card, Voter ID, Passport.
- Address proof: Utility bills, Rent Agreement, Passport.
- Business proof: Registration Certificate, Trade License, Udyog Aadhaar.
- Financial documents: Bank statements, Income Tax Returns, Balance Sheets.
- Photographs: Recent passport-sized photographs of the applicant.
- Loan application: Duly filled and signed loan application form.
- Business plan: Detailed business plan including project report.
Having all documents required for Mudra loan in place ensures faster approval and a smoother loan process.
Interest Rate on Tarun Mudra Loan
The Mudra loan interest rate varies depending on the lender, applicant profile, and repayment capacity. Below is a general overview:
Loan Category
|
Loan Amount Range
|
Indicative Interest Rate Range
|
Repayment Tenure
|
Shishu
|
Up to ₹50,000
|
9% - 12% p.a.
|
Up to 5 years
|
Kishor
|
₹50,001 - ₹5,00,000
|
10% - 14% p.a.
|
Up to 7 years
|
Tarun
|
₹5,00,001 - ₹10,00,000
|
11% - 16% p.a.
|
Up to 7 years
|
How to apply for a Tarun Mudra Loan online?
If you meet the eligibility criteria and have the required documents, you can easily apply for mudra loan online by following these steps:
Visit the lender’s official website and select the Mudra Loan option.
Fill out the online loan application form with personal and business details.
Upload necessary documents such as ID proof, business proof, and financial statements.
Choose the loan amount (₹5–10 lakh for Tarun) and preferred repayment tenure.
Submit the application form and wait for verification and approval.
Once approved, the funds are disbursed directly into your bank account.
How to apply for a Tarun Mudra Loan offline?
- Visit the bank: Approach any bank or financial institution participating in the PMMY scheme
- Application Form: Obtain and fill out the Mudra loan application form
- Document submission: Submit the required documents including identity proof, address proof, business proof, and financial documents.
- Business plan: Provide a detailed business plan outlining the loan requirement and usage.
- Credit evaluation: The bank will assess the applicant’s creditworthiness and business viability.
- Approval and sanction: Upon successful evaluation, the bank will approve and sanction the loan amount.
- Disbursement: The approved loan amount is disbursed to the applicant’s bank account with the Mudra loan interest rate.
- Repayment terms: Discuss and agree on the repayment terms and tenure with the bank.
Tarun Mudra Loan - Annual reports
| Year |
Total Disbursed Amount (Rs. Cr) |
Number of Beneficiaries |
NPA Percentage |
Growth Rate (%) |
| 2019-2020 |
65,000 |
1,25,000 |
2.5% |
15% |
| 2020-2021 |
75,000 |
1,50,000 |
3.0% |
20% |
| 2021-2022 |
85,000 |
1,75,000 |
2.8% |
13% |
| 2022-2023 |
95,000 |
2,00,000 |
3.2% |
12% |
Most important terms and conditions of the Tarun Mudra Loan
- Repayment Tenure: Typically ranges from 3 to 5 years.
- Interest Rate: Competitive rates as per bank policies.
- Collateral: No collateral required.
- Eligibility: Must meet the specific criteria set by the lender.
- Usage: Funds must be used for business purposes only.
- Documentation: Accurate and complete documents are mandatory.
Conclusion
Tarun Mudra Loan is a vital financial tool under the Pradhan Mantri Mudra Yojana, providing crucial support to small and micro enterprises in India. It fosters business growth, encourages entrepreneurship, and contributes to economic development by offering accessible, collateral-free business loans. With competitive interest rates and flexible repayment terms, it serves as an essential resource for business owners looking to expand and enhance their operations.
Know more about Bajaj Finserv Business Loans
Here are some of the key advantages of a business loan from Bajaj Finance that make it an ideal choice for your business expenses:
- Simplified application process: Online applications streamline the process, reducing paperwork and saving time.
- High loan amount: Businesses can borrow funds up to Rs. 80 lakh, depending on their needs and qualification.
- Quick disbursal: Funds can be received in as little as 48 hours of approval, allowing businesses to respond promptly to opportunities and needs.
- Competitive interest rates: The interest rates for Our business loan interest rates range from 14% to 25% per annum.
