MUDRA Tarun (₹10 lakh business loan)

Who is eligible

• Operating non-farm enterprise
• Turnover within MUDRA Tarun ceiling
• Funding need indicated

Eligibility rules · v1 · effective 1 January 2026

Who is not eligible

• Add 'Get credit' to your goals to see this scheme.
• MUDRA Tarun is for existing enterprises (incorporated or operating).
• Turnover exceeded the MUDRA Tarun ceiling.

Before you apply

Most rejections happen because of small data mismatches, not eligibility. Clear these checks first — each takes a few minutes and saves weeks.

1. 1

   Do you have your Udyam Registration certificate?

   Banks expect Udyam registration for MUDRA lending. It is free and instant — complete it first (see the Udyam step on your roadmap).

   Fix it on the official portal

   [UDYAM_CERT]

2. 2

   Are your last 6–12 months of bank statements ready and consistent with your declared turnover?

   Lenders compare statement inflows against the turnover you declare. Large unexplained gaps are a common rejection reason — reconcile the numbers before you apply.

   [BANK_STATEMENT]

3. 3

   Does your business plan state how the loan amount will be used?

   Tarun loans (₹10–20 lakh) need a simple plan showing the purpose (equipment, working capital, stock) and expected income. One page is enough; vague purposes get rejected.

   [BUSINESS_PLAN]

How to apply

1. 1

   Sign in to JanSamarth

   Aadhaar-based eKYC.

2. 2

   Choose Business Activity Loan → MUDRA Tarun

   Compare offers from participating banks.

   Typical duration · 1 day

3. 3

   Upload documents and submit application

   All documents accepted as scanned PDFs.

   Typical duration · 2 days

4. 4

   Bank evaluation and disbursement

   Typical: 2–4 weeks.

   Typical duration · 21 days

What to expect after applying

Decision typically in 14–30 days after you submit

After you submit at a branch or via JanSamarth, sanction typically takes 2–4 weeks. There is no statutory approval deadline — if you hear nothing for over a month, ask the branch for written status and escalate through the bank's grievance channel rather than paying an agent to "speed it up".

Common rejection reasons — and how to avoid them

• Declared turnover doesn't match bank-statement inflows

  How to avoid it: Lenders reconcile your statements against the application. Route business income through the account you present, and explain any large one-off credits up front.

• Poor repayment history or existing defaults

  How to avoid it: MUDRA loans are collateral-free, so banks lean heavily on credit history. Check your credit report before applying and regularise any overdue accounts first.

• Loan purpose is vague or not an income-generating activity

  How to avoid it: PMMY funds income-generating micro-enterprises. State exactly what the money buys (machine, stock, working capital) and the income it produces — personal or consumption uses are rejected.