Up to ₹10 lakh to set up a small unit, half as a grant and half as an interest-free loan
Mukhyamantri Udyami Yojana (Bihar)
The Industries Department's scheme for new entrepreneurs, read in its 2025-26 guideline (Annexure II, issued by the Directorate of Micro, Small and Medium Industries) and its FAQ, both on the Udyami Bihar portal. It runs in yearly rounds. The 2025-26 round took applications from 25 February to 23 March 2026 and selects 9,347 applicants: 2,000 each for the SC and ST, extremely backward class, women and youth components, 1,247 for minority and 100 for persons with disability. Names were drawn by computer lottery on 20 May 2026. No round was open on 24 October 2026. The portal's latest notice (23 October 2026) gives earlier beneficiaries until 10 November 2026 to upload utilisation certificates. Watch the portal for the next round. The portal also carries the separate Bihar Laghu Udyami Yojana.
Residents of Bihar aged 18 to 50, at least Intermediate (10+2), ITI or polytechnic diploma pass, setting up a unit from the Department's project list
- Up to ₹10 lakh for the chosen project, depending on the project: 50 per cent as a grant (up to ₹5 lakh) and 50 per cent as a loan (up to ₹5 lakh)
- The loan is interest-free, except under the youth component, where it carries 1 per cent interest. Repayment of the loan share starts one year after the last instalment, online on the portal; the department's FAQ says it is in 84 monthly instalments
- Money is paid in instalments into a current account in the unit's name, each after a 6 day non-residential training. Of the first instalment, up to ₹1.50 lakh can go on preparing the site, ₹25,000 on the electricity connection and safety kit and ₹25,000 on other items
- Up to 6 months' rent, or ₹50,000 if less, can be paid in advance for a rented site, but not to a close relative
- Machinery must be bought on GST invoices and paid for online; any payment above ₹10,000 must be by bank transfer, cheque or UPI, never cash
- Permanent resident of Bihar, aged 18 to 50, with at least Intermediate (10+2), ITI or polytechnic diploma
- A proprietorship (on your own PAN), partnership, LLP or private limited company
- The right component: SC and ST men and women; extremely backward class (BC-01); women of all categories; youth, meaning men of general and backward (BC-02) categories; minority men and women; or persons with 40 per cent or more disability holding a UDID card
- A project from the Department's list, set up in your own home district. The project cannot be changed after you choose it
- A medical test lab project needs a DMLT or BMLT certificate
Apply online on the Udyami Bihar portal when the Department opens a round. Selection is by computer lottery against district targets, then the head office checks the uploaded documents. Selected applicants take the first 6 day training before any money is paid.