PMMY Tarun Plus: Get a ₹20 Lakh Loan Without Guarantee — 25,000 New Beneficiaries in Just Four Months

PMMY Tarun Plus: The Pradhan Mantri Mudra Yojana (PMMY) continues to create waves among small entrepreneurs across India. Its latest extension, Tarun Plus, is opening new doors for business owners, empowering them to become self-reliant and actively contribute to India's growing economy.

A Huge Response to PMMY Tarun Plus

Launched under the PMMY framework, Tarun Plus has already received an overwhelming response. In the first four months of the 2024–25 financial year alone, over 25,000 new beneficiaries have been added under this scheme. Banks have collectively disbursed loans worth ₹3,790 crore to these new entrants.

Who Can Benefit from Tarun Plus?

The Tarun Plus category specifically targets borrowers who had earlier taken a loan under the original Tarun category and successfully repaid it.

• For these borrowers, the loan limit has been doubled to ₹20 lakh.

• Most importantly, these loans are offered without the need for any collateral, providing much-needed relief to small business owners and startups struggling to secure funding.

When Was the Scheme Introduced?

Finance Minister Nirmala Sitharaman announced the Tarun Plus scheme during the July 2024 Union Budget. It was officially notified on October 25, 2024.

The scheme is ideal for ventures engaged in:

• Manufacturing

• Trading

• Services

• Agriculture-related activities

PMMY's Achievements So Far

Since its inception on April 8, 2015, PMMY has achieved significant milestones:

• 52.37 crore loans sanctioned so far.

• Total loan value stands at ₹33.65 lakh crore.

• 68% of beneficiaries are women entrepreneurs.

• 50% of loans have been granted to individuals from SC/ST/OBC communities.

• The average loan size has grown from ₹40,000 to ₹1.05 lakh.

• The scheme’s NPA (Non-Performing Asset) ratio has improved dramatically, dropping to just 2.21%.

These numbers reflect PMMY's vital role in boosting financial inclusion and supporting grassroots entrepreneurship across India.

Categories of Mudra Loans

• Shishu: Loans up to ₹50,000

• Kishore: Loans from ₹50,000 to ₹5 lakh

• Tarun/Tarun Plus: Loans from ₹5 lakh to ₹20 lakh

Loans under PMMY are available through various financial institutions, including:

• Scheduled Commercial Banks (SCB)

• Regional Rural Banks (RRB)

• Small Finance Banks (SFB)

• Non-Banking Financial Companies (NBFC)

• Micro Finance Institutions (MFI)

Conclusion: A Game Changer for Small Entrepreneurs

Tarun Plus is more than just a loan scheme — it's a major step toward financial empowerment for India's small businesses. By offering higher loan amounts without collateral, the government is not only encouraging entrepreneurship but also laying the foundation for robust economic growth at the grassroots level.