In the Union Budget 2024-25 , the Indian Government made some significant changes to the Pradhan Mantri Mudra Yojana (PMMY) a new category called Tarun Plus has been introduced . This new Tarun Plus category more than doubles the previous maximum loan limit , allowing more established business owners to apply for loans of up to ₹20 lakh without needing to put up any collateral.
Here’s your comprehensive guide to applying for the PMM Mudra Yojana Tarun Plus loan in 2026.
1. What is the Tarun Plus Category anyway ?
The Tarun Plus is a brand new category launched specifically for entrepreneurs who have “graduated” to a higher level.
- Loan Amount: Above ₹10 lakh and up to ₹20 lakh a big increase.
- The Core Thing: To get one of these loans , you’ll need to have already had a Tarun category loan ( around ₹5L-₹10L) and successfully paid it off.
- Security: Like all Mudra loans , these are generally collateral-free and are covered by the Credit Guarantee Fund for Micro Units (CGFMU).
2. What are the Eligibility Criteria ?
To qualify for that higher limit of ₹20 lakh you’ll need to tick all the following boxes:
- Past Repayment Experience: You must have a good track record of repaying a past Mudra Tarun loan.
- Business Type: The business has to be a small, non-corporate, non-farm micro-enterprise ( anything from manufacturing to services to agriculture).
- Age Restriction: You have to be between 18 and 65 years old.
- Credit History: You need to have a good credit score with no defaults on any bank or financial institution.
3. What Documents Do You Need?
Since this is a bigger loan we’re talking about , the documentation is going to be a bit more rigorous than for the Shishu or Kishore categories.
- Identity and Address Docs: Aadhaar, PAN Card, Voter ID, or Passport – the usual suspects.
- Business Proof: A business registration (GST or Udyam) or Licence will do.
- Financial Records: 2 years of audited/unaudited balance sheets and 2 years of income tax returns.
- Bank Statements: 6 to 12 months of bank statements.
- Project Report: A detailed business plan that shows the project is viable from both a technical and financial perspective.
- Asset Statement: A record of your assets and liabilities.
4. How to Apply: Step by Step Guide
Option A: Online (Recommended)
- Head to the Portal: Go to the JanSamarth Portal or the Udyamimitra Portal.
- Check if You’re Eligible: Pick “Business Activity Loan” and put in your details to see if you qualify for the Tarun Plus category.
- Register: Sign up with your mobile number and an email.
- Fill in the Form: Select “Tarun Plus” and fill in the digital application form.
- Upload Docs: Scan and upload your ITR, bank statements and business proof.
- Select Lender: Pick a lender from a list of over 200 partner banks and NBFCs (such as SBI, PNB, Bank of Baroda).
Option B: Offline
- Visit a Branch: Head to a nearby Public Sector Bank, Private Bank, Regional Rural Bank (RRB) or a NBFC.
- Get the Form: Ask for the “PMMY Tarun Plus” application form.
- Submit: Attach your business plan and all the required documents. The bank will check your past Mudra loan repayment record before processing.
5. Key Terms to Keep in Mind
Processing Fee: Generally around 0.50% for Tarun Plus, though some banks may waive this during special schemes.
Interest Rate: This is determined by the bank ( usually between 8% and 12% though this can vary based on the bank’s policy and your credit history).
Repayment Tenure: Up to 7 years (including a 12 month moratorium).
