Tarun project report
Rs 5,00,001 – Rs 10,00,000
The Tarun category is the highest tier of Pradhan Mantri Mudra Yojana, offering loans from Rs 5,00,001 to Rs 10,00,000. It is designed for well-established enterprises and ambitious entrepreneurs who need substantial capital for expansion, modernisation, or setting up new ventures with significant infrastructure requirements. Tarun loans support businesses that can demonstrate strong revenue potential.
Most Tarun applicants qualify on day one
Tick the criteria below — chances are you already meet them. Use the eligibility calculator for a personalised score.
Indicative Tarun approval-likelihood for a typical applicant.
Calculate yoursIndian citizen aged 18–65 years
Non-corporate, non-farm small or micro enterprise
Proven business track record preferred (1+ years)
Detailed project report with comprehensive financial projections
Good CIBIL score (650+ preferred)
Strong repayment capacity demonstrated through bank statements
Valid KYC, business registration, and financial documents
What to keep at hand
Most banks ask for the same essentials. We've illustrated each so you know exactly what to look for.
Aadhaar Card and PAN Card of applicant and co-applicant (if any)
Passport-size photographs (2 copies)
Business registration, GST certificate, trade licence
Proof of business premises (rent agreement, ownership deed)
Detailed project report with CMA data and financial projections
Audited financial statements of last 2 years (if existing business)
Bank statements of last 12–24 months
Income Tax Returns of last 2–3 years
Quotations for all machinery, equipment, and infrastructure
Partnership deed / MOA / AOA / LLP agreement (if applicable)
CIBIL report or credit score
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Tarun-specific questions
What is the maximum loan amount under Tarun Mudra?
The Tarun category offers loans from Rs 5,00,001 to Rs 10,00,000. A newer Tarun Plus category extends this to Rs 20,00,000 for borrowers who have successfully repaid a Tarun loan.
Is collateral needed for Tarun Mudra loans?
No collateral is required for Tarun loans up to Rs 10 lakh. The loan is covered under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme.
What interest rate can I expect for a Tarun loan?
Tarun loan interest rates typically range from 8.5% to 11.5% per annum. Larger loan amounts within Tarun often get better rates than smaller Kishore loans because banks view them as more commercially viable.
Do I need a CIBIL score for Tarun loans?
While there is no strict minimum, a CIBIL score of 650 or above significantly improves your chances. Banks use credit scores as one factor in their assessment for Tarun-category loans.
Can I get a Tarun loan for a new business?
Yes, but it is harder. Banks prefer existing businesses with a track record for Tarun amounts. New businesses can qualify with a very strong project report, relevant experience, and adequate margin money.
What is the repayment period for Tarun loans?
Tarun term loans typically have a repayment period of 3–7 years (up to 84 months). Working capital loans are usually sanctioned for 1 year and renewable annually based on business performance.
Can Tarun loans be combined with PMEGP or Swabalamban subsidy?
Yes. Tarun loans can be clubbed with PMEGP (up to 15-25% subsidy for general category, 25-35% for special categories) or state Swabalamban schemes. This significantly reduces your effective borrowing cost.
What is the Tarun Plus category?
Tarun Plus is a newer category announced for borrowers who have successfully repaid a previous Tarun loan. It offers loans from Rs 10,00,001 to Rs 20,00,000, enabling successful entrepreneurs to scale further.
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