Mukhyamantri Udyami Yojana Bihar: ₹10 Lakh Loan for Entrepreneurs

Mukhyamantri Udyami Yojana is an entrepreneurship promotion scheme by the Bihar government that provides ₹10 lakh financial assistance to aspiring entrepreneurs. The assistance includes ₹5 lakh as subsidy (grant) and ₹5 lakh as interest-free loan repayable in 84 easy instalments. The scheme covers SC, ST, OBC, women, and youth from all categories.

What is Mukhyamantri Udyami Yojana?

Launched to boost self-employment and entrepreneurship in Bihar, this scheme helps unemployed youth set up small and medium industrial units. The scheme has multiple variants:

Key Benefits

• ₹10 lakh total financial assistance
• ₹5 lakh subsidy (50% grant — no repayment needed)
• ₹5 lakh interest-free loan (repayable in 84 monthly instalments)
• Training and handholding support for entrepreneurs
• Project preparation and DPR support

Who is Eligible?

• Must be a permanent resident of Bihar
• Age: 18 to 50 years
• Education: Minimum 10+2 (Intermediate) pass, or ITI, Polytechnic, or equivalent
• Category criteria as per the variant applied (SC/ST/OBC/Women)
• Must not be a defaulter of any bank or financial institution
• Must have a proprietorship firm, partnership firm, LLP, or private limited company registered or willing to register in Bihar
• The proposed project must be for manufacturing, services, or trading sector

Documents Required

• Aadhaar card
• 10+2 or equivalent marksheet/certificate
• Caste certificate (for SC/ST/OBC variants — issued by competent authority)
• Residential certificate of Bihar
• Bank account passbook (in applicant's name)
• PAN card
• Passport-size photograph and signature
• Project report / DPR (Detailed Project Report)
• Firm registration certificate (or undertaking to register within specified time)
• Cancelled cheque of the bank account

Step-by-Step Application Process

Online Application

1. Visit the official portal at udyami.bihar.gov.in
2. Click on "New Registration" or the relevant scheme variant
3. Enter your Aadhaar number and verify via OTP
4. Fill in personal details — name, father's name, DOB, address, education, category
5. Upload required documents — photo, signature, Aadhaar, caste certificate, educational certificates
6. Prepare and upload your project report (DPR) detailing the proposed business
7. Select the type of industry/business you want to start
8. Enter bank account details for fund transfer
9. Review all details carefully and submit the application
10. Note the Application Reference Number for tracking

After Submission

1. Application is screened by the District Industries Centre (DIC)
2. Shortlisted candidates are called for interview/verification
3. Selected candidates receive approval letter
4. Beneficiary registers the firm and opens a current account
5. ₹5 lakh subsidy is released first
6. ₹5 lakh loan is disbursed through the bank
7. Business operations begin with training and mentorship support

Check Application Status

1. Visit udyami.bihar.gov.in
2. Click on "Application Status"
3. Enter your Registration Number or Aadhaar number
4. View current status and any remarks

Fees

There are no application fees. The scheme is free to apply. However, you may incur costs for:

• DPR preparation (can be done yourself or through a consultant)
• Firm registration charges (as per government rates)

Processing Time

• Application review: 1-3 months
• Interview/verification: 1-2 months after shortlisting
• Fund disbursement: 1-2 months after selection
• Total process: Approximately 4-6 months

Important Tips

1. Prepare a strong DPR — this is the most critical document. Include market analysis, projected revenue, and clear use of funds
2. Apply in the right category — check which variant (SC/ST/OBC/Women/Youth) you qualify for
3. Keep all original documents ready — you'll need them during verification
4. Start with firm registration early — it can take time to get proprietorship/partnership registered
5. Repay loan on time — the ₹5 lakh loan must be repaid in 84 instalments. Default will affect your credit score

Frequently Asked Questions

Q1: Can I apply for multiple variants of Udyami Yojana?

No, you can apply under only one variant of the scheme. Choose the most applicable category.

Q2: Is the ₹5 lakh subsidy returnable?

No, the subsidy component of ₹5 lakh is a grant and does not need to be repaid. Only the ₹5 lakh loan component needs repayment.

Q3: What types of businesses are covered?

The scheme covers manufacturing, services, and trading businesses. This includes food processing, textile, IT services, retail, and many other sectors.

Q4: Can government employees apply?

No, government employees are not eligible. The scheme is for unemployed youth and aspiring entrepreneurs.

Q5: Do I need to start a new business or can I expand an existing one?

The scheme is primarily for starting new businesses. Expansion of existing units may be considered under certain conditions.

Q6: What is the loan repayment schedule?

The ₹5 lakh interest-free loan must be repaid in 84 equal monthly instalments (7 years), starting after a moratorium period.

Q7: Can I apply if I've already taken a bank loan?

You can apply, but you must not be a defaulter on any existing bank loan.

Disclaimer: This guide is for informational purposes only. CitizenNest is an independent platform and is not affiliated with the Bihar government. Visit udyami.bihar.gov.in for official information and latest notifications.

Related: See our PAN Card guide if you need a PAN card for your business registration.