It is type of Business Loan for Micro Unit / Entrepreneurs. Under this scheme, finance is provided to non-corporate, non-farm small/micro enterprises from Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs having loan requirement up to Rs. 10 lakh. There are three categories in PMMY.

Loan up to Rs. 50,000/- is covered under Shishu, Loans above Rs. 50,000/- up to Rs. 5,00,000/- is covered under Kishor and Loans above Rs. 5,00,000/- up to Rs. 10,00,000/- is covered under TARUN.