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Bihar Self Employment Loan Scheme

Bihar Finance Application Mode: MIXED Active
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Verified Scheme Data Profile

This profile has been independently compiled from official gazette notifications and verified web domains. Source Authority Link: state.bihar.gov.in Authority: Finance Department (Bihar) • State/Region: Bihar • Last Audited: 20 Oct 2026

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State‑channelized loan assistance through commercial and cooperative banks for unemployed youth to start local services.

Detailed Summary

Overview

The Bihar Self Employment Loan Scheme provides subsidised credit to unemployed residents of Bihar for the establishment of micro‑enterprises and transport‑related ventures. The scheme is administered by the Department of Industries in partnership with scheduled commercial banks and cooperative banks.

Loan Products

Two primary products are offered: (i) Startup Loan up to ₹5 lakhs for new business ventures; (ii) Mukhyamantri Parivahan Yojana, a transport loan up to ₹5 lakhs for purchase of vehicles used in commercial activities. Interest rates are capped below market levels and are linked to the State Bank of India’s prevailing rates.

Disbursement & Repayment

Loans are disbursed directly to the applicant’s bank account after verification of eligibility. Collateral is not required; however, a guarantee from the bank is mandatory. Repayment tenure ranges from 3 to 7 years with a moratorium of up to 12 months for new enterprises.

Monitoring

Beneficiaries are monitored through periodic field inspections and submission of quarterly financial statements to the district coordinating bank.

Key Benefits & Financial Assistance

Comparison Criteria Benefits
Key Benefits
  • Collateral‑free credit up to ₹5 lakhs
  • Interest rates subsidised and linked to state bank benchmarks
  • Flexible repayment tenure of 3–7 years with up to 12 months moratorium
  • Access to both startup and transport‑specific loan products

Eligibility Criteria Profile

Comparison Criteria Eligibility
Minimum Age Limit 18 Years or above
Physical Disability Not Restricted (Anyone can apply)
Domicile State All India (Central Scheme)

Application Process Guide

  1. Register on the Bihar Industries portal (https://state.bihar.gov.in/industry/) and obtain a unique application ID.
  2. Download the loan application form and attach required documents (identity proof, residence proof, unemployment certificate, business plan).
  3. Submit the completed form online or physically at the nearest participating bank.
  4. The bank conducts eligibility verification and forwards the file to the Department of Industries.
  5. Upon approval, the loan amount is credited to the applicant’s bank account.

Common FAQs regarding this Yojana

Eligible permanent residents meeting the specified domicile, income, and category criteria can submit an application along with verified credentials.

Key mandatory documents include Aadhaar Card, Residence/Domicile Certificate, Income Certificate, and active Bank Account Passbook.

Benefits are directly credited to the beneficiary's Aadhaar-seeded bank account through the Public Financial Management System (PFMS) / DBT.

Applicants can track status in real-time by logging into the official portal using their Application Reference Number.