Mukhyamantri Yuva Udyami Yojana
Mukhyamantri Yuva Udyami Yojana is a flagship self-employment promotion scheme launched by the Government of Bihar in 2018 under the Department of Industries, Government of Bihar. The scheme aims to promote entrepreneurship among educated unemployed youth of Bihar by providing financial assistance to set up new industrial units.
It is an ongoing scheme implemented annually through online application cycles. The primary purpose of the scheme is to encourage first-generation entrepreneurs and reduce unemployment by supporting micro and small manufacturing enterprises.
As an MSME or Startup in Bihar, you can benefit through capital subsidy support and interest-free loans to establish your own business unit.
Key Features
- Financial assistance up to ₹10 lakh: Under this scheme, eligible youth can receive project support up to ₹10 lakh for setting up a new enterprise. The amount covers machinery, equipment, and other approved capital expenditure required for business establishment.
- 50% subsidy component (up to ₹5 lakh): Out of the total approved project cost, 50% is provided as government subsidy, subject to a maximum of ₹5 lakh. This reduces your repayment burden significantly.
- Interest-free loan support: The remaining amount (up to ₹5 lakh) is provided as an interest-free loan by the Bihar Government. You are required to repay only the principal amount in installments as per prescribed guidelines.
- Mandatory entrepreneurship training: Selected applicants must undergo entrepreneurship development training before loan disbursement. This helps you understand compliance, bookkeeping, marketing, and basic business operations.
- Applicable only for new enterprises: The scheme supports only new industrial units. Existing businesses are not eligible. This ensures genuine first-time entrepreneurs benefit from the support.
- Online application and transparent selection: Applications are invited through the official portal of the Industries Department. Selection is conducted through a screening process based on eligibility and project viability.
- Special provisions for social categories: Separate allocations are made for different social categories, including women and reserved categories, to ensure inclusive development.
- Focus on manufacturing and selected service sectors: The scheme mainly promotes manufacturing activities. Certain service activities notified by the department are also eligible. Trading activities are generally not permitted.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- Applicant must be a permanent resident of Bihar
- Age between 18 to 40 years
- Minimum educational qualification: Intermediate (12th pass) or equivalent
- Must not be employed in Government/Semi-Government
- Must not be defaulter of any bank or financial institution
- Must propose a new industrial unit
- Only one member per family eligible
- Applicant should not have previously availed similar state government self-employment schemes
Who Can Apply:
- Existing running businesses
- Trading activities
- Applicants with prior government loan defaults
Documents Required
- Aadhaar Card
- Residence Certificate (Bihar)
- Educational Qualification Certificate
- Caste Certificate (if applicable)
- Detailed Project Report (DPR)
- Passport size photographs
- Bank account details
- PAN Card
Application Process for the Scheme
Option 1: Apply with Bullit, Recommended
Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.
Option 2: Apply with Official Portal of Bihar Industries Department
- Visit the official portal of Udyami Bihar
- Register using Aadhaar and personal details.
- Fill an online application form with project details.
- Upload required documents.
- Submit application and note acknowledgement number.
- Attend an interview/screening if shortlisted.
- Track application status online.
- Contact District Industries Centre (DIC) for grievance or clarification.
Frequently asked questions
Is this scheme available throughout Bihar?
Yes, the scheme is applicable across all districts of Bihar. Applications are processed district-wise through respective District Industries Centres under the Industries Department.
Can an existing business apply?
No, only new enterprises are eligible under this scheme. Existing businesses or expansion projects are not covered.
Is the subsidy amount refundable?
No, the subsidy portion (up to ₹5 lakh) is not refundable, provided the enterprise operates as per scheme conditions.
What is the repayment period for the loan?
The interest-free loan portion must be repaid in installments within the timeline prescribed by the Department. Exact repayment schedule is notified in the sanction letter.
Is there any application fee?
As per official guidelines, no major application fee is charged. Minor portal-related charges, if any, are notified in the official notification.
Are service sector units eligible?
Primarily manufacturing units are supported. Certain notified service activities may be eligible. Trading businesses are generally excluded.