Banks sanction Rs 4,930 cr to 34,697 borrowers under Mudra Tarun Plus as of June 2025

New Delhi: Banks have sanctioned over Rs 4,930 crore to 34,697 loan accounts under the newly introduced ‘Tarun Plus’ category of Mudra Yojana as of June 2025.

With a view to incentivising successful borrowers under the Pradhan Mantri MUDRA Yojana (PMMY), a new category of Mudra Loans, namely ‘Tarun Plus’ was introduced in 2024-25 for those borrowers who have successfully repaid their Mudra loan under the Tarun Category, Finance Minister Nirmala Sitharaman said in the Rajya Sabha. Under ‘Tarun Plus’, collateral-free loans up to Rs 20 lakh are provided to such borrowers, she said.

As per PMMY guidelines, 34,697 loan accounts amounting to more than Rs 4,930 crore, as on June 2025, have been sanctioned under this newly introduced category, she said in reply to a question by Congress MP Randeep Surjewala. Banks, through their network, are actively reaching out to Mudra borrowers and reviewing the growth of the units through post-sanction inspections, analysis of stock statements, account transactions and renewal of credit limit, etc, she added.

In reply to another question, Sitharaman said a National Mission on Financial Inclusion (NMFI), namely, Pradhan Mantri Jan Dhan Yojana (PMJDY), was launched in August 2014 to provide universal banking services for every unbanked household, based on the guiding principles of banking the unbanked, securing the unsecured, and funding the unfunded.

To give impetus to financial inclusion initiatives of the government, she said, PMJDY was extended beyond August 14, 2018, by making the scheme more attractive. Banks regularly conduct financial literacy camps in villages, rural and remote areas to educate customers about benefits available on RuPay Debit Card, Direct Benefit Transfer (DBT) withdrawals using RuPay Debit cards and safe digital payments instead of cash transactions, she said.

Business Correspondents (BCs) are trained to help customers use RuPay Debit cards at micro-ATMs, she said. Further, she said, Banks communicate to customers regularly through SMS/email for nudging them to use their RuPay Debit cards at Point of Sale (PoS) & e-Commerce Channel.