Sudhir Singh
Updated on June 15, 2026
Bihar Mukhyamantri Udyami Yojana gives Rs 10 lakh to eligible applicants to start a manufacturing or service business. Half of it: Rs 5 lakh, is a grant you never repay. The remaining Rs 5 lakh is an interest-free loan you repay over 84 months (7 years).
Applications for 2025-26 opened in February 2026 through the online portal. If you missed this cycle, the scheme runs every year and the next round will open in early 2027.
The Rs 10 Lakh Structure
Rs 5 lakh subsidy: This is the government’s direct grant. No repayment.
Rs 5 lakh interest-free loan: Repay in equal monthly instalments over 7 years. No interest at all. You only return the principal.
Total benefit over 7 years: You get Rs 10 lakh upfront, repay Rs 5 lakh at zero interest, and keep Rs 5 lakh permanently.
Who Can Apply
The scheme has four sub-categories, each with separate seats:
SC/ST Youth: Scheduled Caste or Scheduled Tribe men and women aged 18-50.
EBC (Extremely Backward Class) Youth: Age 18-50.
Women (all categories): Women from any community aged 18-50.
Youth with Disabilities: Persons with disabilities, any community, aged 18-50.
Minimum education: 12th pass (Intermediate) from any recognised board. This is a hard requirement.
Bihar domicile: You must have been a resident of Bihar for at least 5 years.
What Business Can You Start?
The scheme covers manufacturing and service businesses from an approved list of 102 categories published by the Department of Industries.
Manufacturing examples: Ice cream, frozen food, agarbatti, papad, leather goods, cement bricks, electrical fittings assembly, garment stitching unit.
Service examples: Auto repair workshop, beauty salon, printing press, boutique, photography studio, electrical repair unit.
Pick carefully. You submit a project proposal for your chosen category. The committee evaluates it for feasibility. Vague or impractical proposals get rejected even if you are otherwise eligible.
Application Process
Go to udyami.bihar.gov.in
Create an account using your Aadhaar and mobile number.
Fill in personal details, educational qualification, category (SC/ST/EBC/Women/Differently Abled), and the business project you want to start.
Upload documents: Aadhaar, caste certificate, educational certificate (12th marksheet), bank account details, Bihar domicile proof, and project proposal summary.
Selection is competitive, more applicants than seats in most categories. The committee shortlists based on project quality, category representation, and district-level balance.
Selected candidates are notified on the portal. After notification: 1. Attend mandatory training (free, 2-3 days) 2. Open a current account in your business name at an authorised bank 3. First instalment (25% = Rs 2.5 lakh) is transferred to that account
Training Before the Money Comes
You must attend the District Industries Centre (DIC) training before any disbursement. Training covers:
Business registration (Udyam registration for MSME), GST basics, bank account management, raw material sourcing, marketing, and bookkeeping.
The training is mandatory, free, and lasts 2-3 days. A stipend of Rs 500 per day is paid. You also get help with Udyam registration during training, which makes your business officially an MSME, opening access to further government schemes and priority lending.
Repayment of the Rs 5 Lakh Loan
Once your business starts generating income, repayment begins. You pay back the Rs 5 lakh interest-free loan in 84 equal monthly instalments of approximately Rs 5,952 per month.
There is no interest. No penalty for early repayment.
If repayment is missed for 3 consecutive months, the DIC alerts you and gives a notice period before any action. Genuine business difficulties can be reported to the DIC for rescheduling.
Comparing with Laghu Udyami Yojana
Laghu Udyami: Rs 2 lakh, no repayment at all, BPL families only, no minimum education, lottery-based, simpler business types.
Mukhyamantri Udyami: Rs 10 lakh (Rs 5 lakh grant + Rs 5 lakh zero-interest loan), SC/ST/EBC/Women/Disabled, 12th pass mandatory, merit selection, manufacturing or service focus.
If you qualify for both and pass the 12th, apply for Mukhyamantri Udyami, the benefit is 5x larger. Bihar Laghu Udyami guide is at indiansouls.in/bihar-laghu-udyami-yojana-2026/.
For artisans who want skill support alongside business funding, PM Vishwakarma Yojana at indiansouls.in/startup/pm-vishwakarma-yojana-guide/ is complementary, the two schemes can be used for different purposes.
Key Links
Apply: udyami.bihar.gov.in
District Industries Centre (DIC): Find yours at industry.bihar.gov.in
Helpline: 0612-2547071
📩 If you notice any incorrect data in this guide or wish to share additional information, please write to us at info@indiansouls.in.
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