Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q144: To be eligible for the "Tarun Plus" loan category (loans between ₹10 Lakh and ₹20 Lakh) under MUDRA, a borrower must satisfy a specific condition. Which of the following is that condition?

A
The borrower must have a credit score of 800 or above.
B
The borrower must employ at least 20 people in their enterprise.
C
The borrower must have availed and successfully repaid a previous loan under the 'Tarun' category.
D
The borrower must be a GST-registered entity with a turnover exceeding ₹1 Crore.
✅ Correct Answer: C
🎯 Quick Answer:
Successful repayment of a previous Tarun loan is mandatory.
Concept Definition: Graduation Logic.
Structural Breakdown: 1. Rationale: The "Tarun Plus" category is a reward for good credit behavior and business growth.
It is not open to a fresh borrower directly (who would typically start at Shishu or Kishore). 2. Guarantee: These loans are covered under the Credit Guarantee Fund for Micro Units (CGFMU).