Bihar Government Loan Schemes and Grants for Startups & MSMEs

Are you a Startup or MSME from Bihar?

If yes, then this is the right time to build your dream business with the help of Bihar Government Loan Schemes. The Bihar government has launched multiple entrepreneurship and self-employment programs to support youth, women, minorities, and backward classes. Whether you are planning a new startup or expanding an existing MSME, these schemes can provide loans, subsidies, and business training.

How Bihar’s Startups Can Take Advantage of It

In the last few years, Bihar has witnessed a strong rise in entrepreneurship. As per official reports, over 12,000 youth-led startups have benefited from state and central government initiatives, creating thousands of jobs and contributing to Bihar’s growing economy.
With easy access to interest-free or low-interest loans up to ₹10 lakh, entrepreneurs can now establish industries in agriculture, services, and manufacturing sectors. The Bihar Startup Policy 2022 and Mukhyamantri Udyami Yojanas are the key growth boosters.

Bihar Election 2025: A New Era of Youth-Focused and Startup-Friendly Policies

As Bihar heads toward the 2025 elections, the state government and policymakers are emphasizing youth empowerment, digital entrepreneurship, and innovation-driven schemes. Recognizing the growing impact of startups and MSMEs on Bihar’s economy, new-generation schemes are being introduced to boost self-employment, technology adoption, and skill development.

The next phase of Bihar’s industrial growth will focus on making entrepreneurship accessible to every aspiring youth. The upcoming policies aim to expand Mukhyamantri Udyami Yojanas, simplify startup registration, and introduce digital funding and training platforms for faster implementation. These steps are expected to create 1 lakh+ new jobs and attract investments in green energy, agritech, and manufacturing sectors.

State-Wise Schemes for Bihar Startups

1. Mukhyamantri Yuva Udyami Yojana

This flagship scheme promotes entrepreneurship and self-employment among Bihar’s youth. Eligible applicants can receive up to ₹10,00,000 in financial assistance to set up new businesses.

• Focus: Business, Self-employment, Youth Empowerment
• Benefit: Up to ₹10 lakh assistance
• Objective: Encourage youth to become job creators, not job seekers

2. Mukhyamantri Mahila Udyami Yojana

Aimed at empowering women entrepreneurs, this scheme provides ₹10 lakh assistance to start small-scale ventures.

• Focus: Women Entrepreneurship, Self-employment
• Target Group: Female youth of Bihar
• Benefit: 50% loan + 50% subsidy model

3. Mukhyamantri Alpasankhyak Udyami Yojana

This scheme supports minority entrepreneurs (Muslim, Sikh, Jain, Christian, etc.) by providing up to ₹10 lakh for business establishment.

• Focus: Minority Entrepreneurship
• Benefit: 50% subsidy, 50% loan

4. Mukhyamantri Ati Pichhada Varg Udyami Yojana

Designed for extremely backward classes, this program offers ₹10 lakh to start new enterprises.

• Focus: Financial empowerment of EBC youth
• Implementation: Department of Industries, Bihar

5. Mukhyamantri Anusuchit Jati / Anusuchit Janjati Udyami Yojana

This initiative aims to boost Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurship by funding new startups and MSMEs.

• Financial Assistance: Up to ₹10 lakh
• Purpose: Promote inclusion and self-dependence

6. Bihar Startup Policy 2022

The Bihar Startup Policy provides end-to-end support, from funding to incubation, to promote startups in technology, agriculture, education, healthcare, and manufacturing.

• Incentives:
  • Interest-free seed fund up to ₹10 lakh
  • Mentorship and networking support
  • Reimbursement for patent filing and marketing expenses
• Goal: To create a sustainable startup ecosystem in Bihar

National Schemes for Startups and MSMEs

While Bihar offers excellent state-specific incentives, entrepreneurs can also take advantage of national-level government schemes designed to empower startups across India.

1. Pradhan Mantri Mudra Yojana (PMMY)

Under this flagship scheme, small businesses can avail loans up to ₹20 lakh for manufacturing, trading, and service activities.

• Categories: Shishu, Kishor, Tarun
• Benefit: Collateral-free loans

2. Stand-Up India Scheme

This initiative helps SC/ST and Women Entrepreneurs to start new ventures by providing bank loans for greenfield projects.

• Loan Amount: ₹10 lakh – ₹1 crore
• Sector: Manufacturing, trading, and services

3. Entrepreneurship and Skill Development Programme (ESDP)

Organized by the Ministry of MSME, ESDP trains youth in business planning, management, and financial literacy to help them start and grow MSMEs.

4. Agri-Clinics and Agri-Business Centres Scheme

For agriculture-based startups, this program offers training and financial aid to agri-graduates for setting up agri-businesses.

5. Green Business Scheme

Launched by the Ministry of Social Justice & Empowerment, it provides loans for eco-friendly businesses like solar energy, electric vehicles, and organic farming.

6. Samriddhi Scheme for SC/ST Students

This initiative offers ₹20 lakh in funding for Scheduled Caste/Scheduled Tribe students to start their own ventures during or after graduation.

7. MSME Sustainable (ZED) Certification Scheme

This program encourages MSMEs to adopt Zero Defect, Zero Effect (ZED) practices and get certified to access incentives and recognition.

8. Incubation Scheme by MSME

The Incubation Scheme helps startups validate their ideas, providing financial support for prototype development and machinery setup.

9. New Swarnima Scheme for Women

A loan assistance program offering ₹2 lakh at just 5% interest for backward class women entrepreneurs to establish small businesses.

10. National Startup Awards

Recognizes outstanding startups and encourages innovative business ideas that contribute to India’s economic growth.

Impact of Bihar Government Schemes

Since the introduction of these schemes, over 30,000 entrepreneurs in Bihar have benefited from various loan, grant, and mentorship programs.
Many successful startups in sectors like agriculture tech, handicrafts, and education have emerged from Bihar, showcasing the state’s growing entrepreneurial spirit.

How StartupFlora Helps You Avail These Schemes

StartupFlora acts as your trusted business consultancy partner in registering, applying, and availing government loans, subsidies, and startup certifications.
We help with:

• Startup India & MSME Registration
• Seed Funding & Subsidy Application
• Business Plan & Documentation Support
• Government Scheme Consultancy

If you are from Bihar and planning to launch your startup — StartupFlora can help you access the right funding and government support easily.

FAQs on Bihar Government Loan Schemes

Q1. What is the Mukhyamantri Yuva Udyami Yojana in Bihar?
A: It is a flagship program offering up to ₹10 lakh for youth to start new businesses and promote entrepreneurship in Bihar.

Q2. Are there any schemes for women entrepreneurs in Bihar?
A: Yes, the Mukhyamantri Mahila Udyami Yojana provides ₹10 lakh assistance exclusively for women entrepreneurs.

Q3. How can minority entrepreneurs get loans in Bihar?
A: They can apply under the Mukhyamantri Alpasankhyak Udyami Yojana, which provides 50% subsidy and 50% loan.

Q4. What is Bihar Startup Policy 2022?
A: It is a comprehensive policy providing funding, mentorship, and infrastructure to promote startups in Bihar.

Q5. How can StartupFlora help Bihar startups?
A: StartupFlora assists in registration, funding applications, and availing subsidies under Bihar and national startup schemes.