Benefit Amount
Loan ₹5 lakh to ₹10 lakhLoan
✓ Government Verified✓ Direct Bank Transfer
ℹAbout MUDRA Loan — Tarun
MUDRA Loan — Tarun is designed for established micro business owners who want to expand their existing operations. If you've been running a small business successfully and need Rs.5 lakh to Rs.10 lakh for growth, this government-backed loan offers collateral-free financing. You can apply online through the official MUDRA website or visit any participating bank with basic documents like Aadhaar, PAN, and proof of your business operations.
Ministry
Ministry of Finance
✓Who Is Eligible?
MUDRA Loan Tarun is available to established micro business owners across India who meet the basic eligibility criteria. You must be between 21 to 65 years of age to apply for this scheme. There is no income limit restriction, meaning individuals from any economic background can apply. The scheme is open to all genders, whether you are a man or a woman entrepreneur. All social categories including General, OBC, SC, and ST candidates are eligible without any discrimination. The key requirement is that you must be running an established micro business successfully and seeking funds specifically for expansion or growth of your existing operations. You need to provide proof of your current business operations through documents like business registration, shop establishment proof, or operational records. The loan amount ranges from Rs.5 lakh to Rs.10 lakh, so you should require funds within this range for your business expansion plans. There are no geographic restrictions, meaning this scheme applies to all states and union territories across India. Whether you are located in urban or rural areas, you can apply for this loan. Self-employed individuals and small business owners are the primary target group. Check the official MUDRA website at https://www.mudra.org.in for any additional or updated eligibility requirements before applying.
Quick eligibility check:
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Gender: Male, Female, Other✓
Category: General, OBC, SC, ST📝How to Apply for MUDRA Loan — Tarun
Applying for MUDRA Loan Tarun is a straightforward process that you can complete online or at your bank. First, visit the official MUDRA website at https://www.mudra.org.in to understand the complete loan details and eligibility criteria. Second, gather all required documents including your Aadhaar Card, PAN Card, business proof documents, recent bank statements, and Income Tax Returns if available. Third, you can either apply directly through the official MUDRA website portal or visit any participating bank branch near you with your documents. Fourth, fill out the loan application form with accurate information about your existing business, current operations, and the expansion plans for which you need the loan amount. Fifth, submit your documents along with the completed application form to the bank or through the online portal. Sixth, the bank will verify your documents and assess your business credentials, typically taking a few days to a week. Finally, once approved, you will receive the loan amount directly to your business bank account. Remember that this is a collateral-free loan, so you don't need to pledge any assets as security. Keep all your business-related documents ready to speed up the approval process.
Visit Official Portal →📄Documents Required6 required
?Frequently Asked Questions
1What is the difference between MUDRA Loan Tarun and other MUDRA loan categories?
MUDRA Loan — Tarun is specifically for established micro businesses seeking expansion with loan amounts between Rs.5 lakh to Rs.10 lakh. It differs from MUDRA Loan Shishu (up to Rs.50,000 for startups) and MUDRA Loan Kishor (Rs.50,001 to Rs.5 lakh for growing businesses). Tarun targets businesses that have proven track records and need larger capital for expansion.
2Is collateral required for MUDRA Loan — Tarun?
No, MUDRA Loan — Tarun is a collateral-free loan scheme. You don't need to pledge any assets or property as security. However, banks may require business proof, bank statements, and ITR to assess your business credibility and repayment capacity.
3How long does it take to get approval for MUDRA Loan — Tarun?
The approval timeline typically ranges from 7-14 days depending on the bank and completeness of your documentation. Banks may process faster if you submit all required documents (Aadhaar, PAN, Business Proof, Bank Statements, and ITR) upfront. Some banks offer quick-track approvals within 48-72 hours for existing customers.
4What interest rate and repayment tenure is offered under this scheme?
Interest rates vary by bank and your creditworthiness, typically ranging from 8-12% per annum. The loan can be repaid over a period of 3-7 years depending on your business cash flow and the bank's policies. Some banks also offer flexible repayment schedules tailored to seasonal business variations.
5Can I apply for MUDRA Loan — Tarun online or do I need to visit the bank in person?
You can apply through the official MUDRA website (mudra.org.in) online, but most banks will require you to visit in person to verify documents and complete the final formalities. However, many banks now offer hybrid processes where you can start the application online and complete verification at the branch.
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