Tarun Mudra Loan: Limit, Interest Rate and Eligibility

What is Tarun Mudra Loan?

The Tarun Mudra Loan is a government-backed Business Loan offered under the Pradhan Mantri Mudra Yojana to support micro and small enterprises. It aims to provide accessible funding to eligible entrepreneurs and promote business growth.

The Tarun Mudra Loan is a component of the PMMY scheme designed to provide collateral free financial support to small and micro enterprises. The loan covers a range from ₹5 lakh to ₹10 lakh. It aims to encourage business expansion, working capital requirements and machinery purchase, especially for growing enterprises. The scheme benefits new and existing entrepreneurs by providing accessible financing.

Also Read: What is Business Loan: A Complete Guide

Key Features of the Tarun Mudra Loan

• Loan amount between ₹5 lakh and ₹10 lakh
• Collateral-free loan structure
• Flexible repayment tenure offered by lenders
• Priority access for women and minority entrepreneurs
• Interest rate varies by lender
• Simple eligibility and documentation process

Tarun Mudra Loan Limit and Margin Requirements

The Tarun Mudra Loan is available between ₹5 lakh and ₹10 lakh. The margin requirement depends on the lender and generally ranges from 10 to 20 percent of the project cost. The loan can be used for working capital, expansion and purchase of assets.

Eligibility Criteria for Tarun Loan

• Age between 18 and 65 years
• Eligible applicants include individuals, firms and companies
• Good credit profile and repayment record
• Enterprises engaged in manufacturing, trading or service sectors
• Udyam Registration may be required

Also Read: Udyam Registration for Startups

Interest Rates and Charges on Tarun Mudra Loan

Interest rates range from 11 to 16 percent per annum depending on lender policy, credit profile and business viability. Processing fees may apply. A better credit score may help applicants secure lower rates.

Documents Required for Tarun Mudra Loan

• Complete application form
• Identity proof and address proof
• Business registration documents
• Financial statements
• Additional documents as required

How to Apply for Tarun Mudra Loan - Step by Step Guide

• Visit the lender website or branch
• Complete application form
• Submit required documents
• Verification by lender
• Approval and disbursal based on eligibility
• Maintain accurate records to support application

Benefits of Availing Tarun Mudra Loan

The Tarun Mudra Loan offers several benefits to eligible enterprises. It provides easy access to capital without collateral and supports borrowers with competitive interest rates that make financing more affordable. The scheme offers flexible repayment terms that enable businesses to manage cash flow effectively and promotes business growth by funding expansion and working capital needs. Government support increases feasibility and reduces risk for lenders which improves availability of credit for small and micro enterprises.

Tarun Mudra Loan: Annual Disbursement and Performance

The annual disbursement under the Tarun category has grown steadily reflecting positive demand from small enterprises. It highlights government focus on financial inclusion and entrepreneurship.

Final Thoughts

The Tarun Mudra Loan helps micro and small entrepreneurs access funds to expand operations, purchase assets and meet working capital needs.

Godrej Capital Loans for Small Businesses

Godrej Capital offers different types of loans for small businesses, viz., unsecured Business Loan, Business Loan for Women, Business Loan for MSMEs; also, secured loans like Loan Against Property and Udyog Loan Against Property. These loans are designed to cater to the diverse needs of MSMEs. These loan solutions provide:

• Flexible Loan Repayment: Godrej Capital’s ‘Design Your EMI’ feature empowers you opt for flexible repayment based on your business cashflow requirements. With this feature, borrowers can choose to pay interest-only in select months, so they have more funds for other business needs. This is especially useful if you run a seasonal business or need to allocate funds for other important needs.
• Competitive Interest Rates: Godrej Capital understands the importance of managing costs. That's why it offers competitive interest rates to keep your loan EMIs affordable. Use Business Loan EMI calculator to estimate your monthly EMI payment.
• Minimal Documentation: Godrej Capital’s loan application process requires minimal documentation to save you time and hassle.
• Prompt Support: Make the most of GC’s dedicated customer support team, which is proactive in providing timely guidance and assistance. Additionally, utilise 24/7 access to GIA chatbot to avail instant answers and information, ensuring borrowers can quickly find the solutions they need

Apply now for a Business Loan.

FAQs

Q.1. What is the maximum limit for Tarun Mudra Loan?

A. The maximum limit is ten lakh rupees.

Q.2. Can a new business apply for Tarun Loan?

A. Yes, if it meets eligibility criteria.

Q.3. Is collateral mandatory for Tarun Loan?

A. No, the loan is collateral free.

Q.4. What documents are essential for quick approval?

A. Identity proof, business documents and financial records.

Q.5. How long does approval and disbursal take?

A. It depends on lender processes.

Disclaimer:

The content presented on this page, including images and factual information, is intended solely as a summary derived from publicly available sources. GHFL/GFL (“Company”) does not claim ownership of such information, nor does it represent that the Companies have exclusive knowledge of the same. While efforts are made to ensure accuracy, there may be inadvertent errors, omissions, or delays in updating the content. Users are strongly encouraged to independently verify all information and seek expert advice where necessary. Any decisions made based on this content are solely at the discretion and responsibility of the user. Godrej Capital and its affiliates assume no responsibility for any loss or damage that may result from the use of or reliance on the information provided herein.