Bihar Mukhyamantri Udyami Yojana 2026: Eligibility, Benefits and How to Apply

What the Mukhyamantri Udyami Yojana is designed to do

Starting a new business in Bihar often stalls at the funding stage, particularly for first-generation entrepreneurs from SC/ST, EBC, minority, or women backgrounds who may not have collateral or an existing credit history that banks require. The Mukhyamantri Udyami Yojana was created by the Bihar government to directly fund new enterprises, combining a substantial outright subsidy with a low-cost loan so that the financial barrier to starting a business is meaningfully lower.

Unlike many state schemes that only subsidize interest on a bank loan, this scheme channels both the subsidy and the loan component through the Industries Department directly, with selected beneficiaries receiving the funds to set up their enterprise.

Key Takeaways

• The scheme is implemented by the Industries Department, Government of Bihar, through the official portal udyami.bihar.gov.in.
• Total financial assistance goes up to ₹10 lakh per selected applicant, split as a 50 percent non-repayable subsidy, up to ₹5 lakh, and a 50 percent loan component, up to ₹5 lakh, repayable over 84 installments.
• The scheme runs six parallel categories: Mukhyamantri SC/ST Udyami Yojana, Mukhyamantri Ati Pichhda Varg (EBC) Udyami Yojana, Mukhyamantri Mahila Udyami Yojana, Mukhyamantri Yuva Udyami Yojana, Mukhyamantri Alpsankhyak Udyami Yojana, and Mukhyamantri Divyangjan Udyami Yojana.
• Selection is lottery-based among eligible applicants once the application window closes, rather than first-come-first-served.
• Applicants must be permanent residents of Bihar, generally within an 18 to 50 age range depending on the specific category, with some category-specific cycles setting the upper limit at 40 or 45 years.
• The loan component under the Mukhyamantri Yuva Udyami Yojana carries a small 1 percent interest rate, while other categories are typically structured as interest-free loans.

The six categories under the scheme

Eligibility criteria

• The applicant must be a permanent resident of Bihar, with a valid domicile certificate.
• Age limits vary slightly by category and application cycle, generally falling between 18 and 50 years, with some cycles capping certain categories at 40 or 45 years.
• The business proposed must be a new enterprise; the scheme is not meant to fund an already operational, long-running business.
• The applicant's business location must be within Bihar; proposals for businesses to be set up outside the state are not eligible.
• Applicants should not have previously availed assistance under the same scheme for an earlier venture.

Financial assistance structure

• Total assistance of up to ₹10,00,000 per selected beneficiary.
• ₹5,00,000 as a non-repayable subsidy, which does not need to be returned.
• ₹5,00,000 as a loan component, generally interest-free except under the Yuva Udyami Yojana, which carries 1 percent interest.
• The loan portion is typically repaid over 84 monthly instalments.
• The exact split between subsidy and loan, and the precise repayment schedule, can vary slightly by application cycle and category, so applicants should confirm current terms on the official portal.

How to apply for the Mukhyamantri Udyami Yojana

• Visit the official portal at udyami.bihar.gov.in and register with your mobile number and basic details.
• Select the category that applies to you, such as SC/ST, EBC, Mahila, Yuva, Alpsankhyak, or Divyangjan Udyami Yojana.
• Fill in personal details, educational qualifications, proposed business details, and bank account information.
• Upload the required documents, including a domicile certificate, a caste or category certificate where applicable, educational certificates, Aadhaar, and a passport-sized photograph.
• Submit the application before the notified last date, and note your application number for tracking.
• Watch for the lottery-based selection list published on the portal, followed by document verification and training before fund disbursement for selected applicants.

Frequently Asked Questions

How much financial assistance does the Mukhyamantri Udyami Yojana provide?

Selected applicants can receive up to ₹10 lakh in total, structured as a ₹5 lakh non-repayable subsidy and a ₹5 lakh loan, typically repayable over 84 instalments.

Who is eligible for the Bihar Mukhyamantri Udyami Yojana?

Permanent residents of Bihar proposing a new enterprise, generally aged between 18 and 50 depending on the category, are eligible under one of the scheme's six categories.

How are applicants selected under this scheme?

Selection follows a lottery-based process among eligible applicants once the online application window closes, rather than a first-come-first-served basis.

Is interest charged on the loan component?

Most categories carry an interest-free loan component, except the Mukhyamantri Yuva Udyami Yojana, which carries a 1 percent interest rate on its loan portion.

Can an existing business apply for funding under this scheme?

No, the scheme is intended to fund new enterprises, not to provide working capital or expansion funding for an already operational, long-running business.

Where do I apply for the Mukhyamantri Udyami Yojana?

Applications are submitted online through the official portal at udyami.bihar.gov.in, where you select your applicable category and complete the registration process.

Planning to start a business in Bihar?

A complete, error-free application matters when selection is lottery-based among eligible entries. Book a free consultation with Growthora, and we will help you prepare your documents, choose the right category, and put together a strong Mukhyamantri Udyami Yojana application.