Loan categories
| Category | Loan amount |
|---|---|
| Shishu | Up to ₹50,000 |
| Kishore | Above ₹50,000 to ₹5 lakh |
| Tarun | Above ₹5 lakh to ₹10 lakh |
| Tarun Plus | Above ₹10 lakh to ₹20 lakh, for entrepreneurs who have successfully repaid a previous Tarun loan |
The Department of Financial Services describes non-agricultural activities and allied activities such as dairy, poultry and beekeeping. Participating institutions include banks, regional rural banks, small finance banks, NBFCs and microfinance institutions. Official PMMY details.
What to compare
Ask the lender for its interest rate, fees, repayment schedule, grace period, required documents and total cost. Collateral-free does not mean interest-free, automatic approval or no repayment obligation. The lender evaluates the application.
Example: A first-time borrower seeking ₹3 lakh would investigate Kishore; Tarun Plus is not a general ₹20 lakh first-loan category. Eligibility and sanction depend on the lender and current rules.
Source checked: 28 October 2026. Check current terms and availability with a participating lender.
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