MUDRA Tarun Plus Loan: Rs 10 to Rs 20 Lakh Expansion Loan

For well-established businesses ready for aggressive expansion, MUDRA Tarun Plus Loan offers Rs 10 lakh to Rs 20 lakh. This enhanced variant supports large-scale business growth, manufacturing expansion, and strategic investments without requiring collateral, making it ideal for proven entrepreneurs. MUDRA Tarun Plus is an extended version of the standard Tarun Loan, designed for businesses that have demonstrated consistent profitability and strong repayment capacity. It bridges the gap between MUDRA financing and traditional bank loans, providing higher amounts while maintaining simplified documentation.

Loan Amount and Interest Rates

Tarun Plus Loan offers: Rs 10,00,000 to Rs 20,00,000 with interest rates of 8% to 11.5% per annum. Repayment period is 5 to 7 years with processing fees of 1% to 1.5% of loan amount. Moratorium period is 6 to 12 months available. Rates vary based on your credit score, business profitability, and the lender’s policies. Women entrepreneurs often get reduced rates by 0.5%.

Eligibility Requirements

To qualify, you must be an Indian citizen aged 18 to 65 years with a business operating successfully for minimum 3-5 years. Annual business turnover should be minimum Rs 50 lakh with clear profit records for last 3 years. You need excellent credit history with zero defaults and a positive credit score (usually 650 or above). Your business should be registered (sole proprietor, partnership, or company) with a stable customer base and market presence. Your previous loan repayment history is crucial, as late payments or defaults will disqualify you.

Documents to Prepare

You’ll need: Identity, address, and bank proofs, recent passport-sized photographs, detailed business plan and expansion project report, bank statements (24 months), ITR for last 3 years, audited balance sheet and profit-loss statements, business registration and trade certificates, premises lease or ownership proof, list of existing assets and equipment with valuations, personal balance sheet showing assets and liabilities, and business credit references from suppliers. Audited financial statements make approval faster and easier.

How to Apply

Prepare a comprehensive expansion or investment project report. Calculate detailed financial projections for 3-5 years. Show break-even analysis and expected ROI. Contact your bank’s business loans department. Discuss loan requirements and eligibility. Collect the Tarun Plus application form. Fill all details accurately and completely. Attach all required original and copied documents. Submit application to bank’s business division. Bank conducts due diligence and property verification. Loan committee review within 30-50 days. Approval and fund disbursement in installments if needed.

Common Uses for Tarun Plus Loan

Manufacturing facility expansion or modernization, multi-city franchise network expansion, large retail chain expansion, commercial property purchase for business premises, technology infrastructure and automation, supply chain and logistics setup, real estate or hospitality business growth, export business infrastructure, and healthcare or educational institution expansion.

FAQ

Can a new business apply for Tarun Plus directly?
No, your business must have 3-5 years of operation history and proven profitability.

What if I have late payment history with my current loan?
Late payments will likely result in rejection. Consider improving your payment record before applying.

Can I get funds disbursed in stages?
Yes, many banks disburse Tarun Plus loans in 2-3 stages based on project milestones.

Is collateral required for Tarun Plus?
No, but banks may ask for additional security like post-dated cheques or hypothecation of business assets.