Want to expand your small business in Bihar? Knowledge of the MSME loan Bihar schemes is all that matters. The need for convenient, easy to avail and cheap business loans is increasing with more than 26 lakh registered MSMEs in Bihar as per government statistics. To facilitate this development, the government of Bihar has launched several forms of funding that suit the entrepreneurs. Whether it is a rural-based startup or an already established trader in an urban town, these Bihar MSME loan schemes are targeted to alleviate the financial burden, increase the number of jobs and foster innovation. This blog will discuss the best government-supported schemes that you must be aware of.
What Are the Top MSME Loan Bihar Options for Small Businesses?
Want to open or expand your business in Bihar? The Bihar govt MSME loan scheme provides a diversified financial assistance in several forms of Bihar MSME schemes that are specific to small businesses. From business loan in Bihar to exclusive Bihar government loan scheme for business, these programs aim to boost entrepreneurship and strengthen MSME Bihar initiatives.
- Mukhya Mantri Udyami Yojana
- Mukhyamantri Yuva Swarozgar Yojana
- Credit Linked Capital Subsidy Scheme (CLCSS)
- Pradhan Mantri MUDRA Yojana (PMMY)
- Prime Minister’s Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
- SIDBI Make in India Soft Loan Fund for MSMEs (SMILE)
- Bihar Startup Policy
- Bihar Industrial Investment Promotion Policy (BIIPP)
Mukhya Mantri Udyami Yojana
This scheme is aimed at providing financial assistance to young entrepreneurs through loans under various msme loan Bihar initiatives. The loan can be availed for setting up a new business, making it an ideal option for those seeking support through Bihar MSME loan schemes. The scheme also offers a 5% interest subsidy on the loan for the first five years. Following are the other highlights of the scheme:
| Loan amount | Up to 10 lakhs |
|---|---|
| Interest subsidy | 5% |
| Loan tenure | Up to 7 years |
| Educational qualification | Minimum 10th passed |
| Age | Between 18 and 40 years |
Mukhyamantri Yuva Swarozgar Yojana
It is a scheme launched by the Bihar government to encourage entrepreneurship among the youth. The scheme provides financial assistance to eligible candidates to set up their business ventures. The scheme covers all types of industries, including MSMEs, making it an ideal option for those seeking an MSME loan Bihar. This Bihar MSME loan initiative also falls under the broader umbrella of the Bihar govt MSME loan scheme, aiming to uplift small enterprises. As part of the Bihar government loan scheme for business, it offers strong support for budding entrepreneurs to start and grow their ventures.
| Loan amount | Up to 10 lakhs |
|---|---|
| Interest rate | 2%-4% |
| Loan tenure | Up to 7 years |
| Margin money requirement | 10% of the project cost |
| Age | Between 18 and 40 years |
Credit Linked Capital Subsidy Scheme (CLCSS)
Credit Linked Capital Subsidy Scheme was launched in October 2000 by the Government of India. This scheme provides necessary funds to MSMEs for upgrading their existing technologies. Enterprises can use this scheme to upgrade their existing plant and machinery and increase profit. This scheme has no upper loan limit, but the subsidy is calculated on the loan amount sanctioned for P&M purchase only. The scheme is also highly relevant for entrepreneurs seeking msme loan bihar benefits. By leveraging this scheme, businesses can improve productivity while enjoying the incentives offered under the bihar msme loan support framework. The following are its main features:
| Loan amount | No upper limit |
|---|---|
| Subsidy | 15% of the loan amount |
| Annual guarantee fee | 0.75%-1.0% |
| Loan tenure | Flexible tenure depending upon the repayment capacity |
Pradhan Mantri MUDRA Yojana (PMMY)
The Pradhan Mantri MUDRA Yojana (PMMY) is a flagship central government scheme launched in 2015. It provides micro-loans to non-corporate, non-farm micro and small enterprises in both rural and urban areas.
PMMY offers loans under three categories, depending on the stages of business growth and funding needs:
- Shishu Mudra: Up to Rs. 50,000
- Kishore Mudra: Rs. 50,001 to Rs. 5 lakh
- Tarun Mudra: Rs. 5 lakh to Rs. 10 lakh
MUDRA loans are available through various financial institutions, including Public sector banks, Private sector banks, Regional Rural Banks, Small Finance Banks, Microfinance Institutions, and Non-Banking Financial Companies (NBFCs).
Unlike other loan schemes, PMMY doesn’t have specific criteria for age, gender, tenure, interest rates, etc. All these factors can vary based on the category of the loan and the policies of the lending institution.
Prime Minister’s Employment Generation Programme (PMEGP)
PMEGP is a credit-linked subsidy scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME), which aims at creating job opportunities by establishing micro-enterprises. The main target of this scheme is Women, Traditional and prospective artisans and Unemployed youth. The following are some of its main features:
| Age | Minimum age of 18 |
|---|---|
| Interest rate | Between 11% -12% depending on the bank |
| Loan tenure | 3-7 years |
| Education qualification | VIII standard pass |
| Maximum Loan amount | Rs. 1 Crore |
| Subsidy | 15% to 35% |
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
CGTMSE is a joint initiative launched in 2000 by the Ministry of Micro, Small and Medium Enterprises (MSME), the Government of India, and the Small Industries Development Bank of India (SIDBI). It encourages financial institutions to provide collateral-free credit schemes to micro and small enterprises. In case of any default, the bank can file a claim with CGTMSE. This scheme plays a significant role in promoting msme loan bihar options and helping entrepreneurs access bihar msme loan benefits with ease. The following are some of its main features:
| Loan amount | Up to 5 crore |
|---|---|
| Collateral | Not required |
| Loan tenure | 5-10 years |
| Annual Guarantee fee | 0.37%-1.35% |
| Age | Minimum age of 18 |
Stand-up India
Stand-up India is a central government scheme launched in 2016. It provides bank loans for entrepreneurship among women and members of Scheduled Castes (SCs) and Scheduled Tribes (STs). Existing businesses cannot avail loans through this scheme, as these are provided for starting new businesses. These loans are provided through various banks, including scheduled commercial banks, regional rural banks (RRBs), and small finance banks.
This scheme provides loan amounts ranging from Rs. 10 lakhs to Rs. 1 crore. The interest rates and tenure vary depending on the nature of the business and other factors such as the nature of the business, credit policies of the lender, etc.
SIDBI Make in India Soft Loan Fund for Micro, Small, and Medium Enterprises (SMILE)
SMILE is a scheme launched by the central government to provide financial assistance to 25 Identified sectors under the ‘Make in India’ initiative. This scheme promotes the ‘Make in India’ initiative among entrepreneurs. SMILE provides adequate funding for the setting up of new enterprises and also for the expansion of existing ones. For those looking for msme loan bihar options, this scheme can be highly beneficial. It also aligns with various bihar msme loan initiatives designed to empower small and medium enterprises across the state. The following are some of its main features:
| Loan tenure | Maximum 10 years |
|---|---|
| Loan amount | From Rs.10 lakhs to Rs.25 lakhs |
| Interest rates | Depending on enterprises’ requirement |
| Nature of loan | Quasi-equity and term loans |
Bihar Startup Policy
Bihar Startup Policy 2025 is one of the key projects aimed at developing the startup ecosystem in the state. Having been designed to accommodate young entrepreneurs and new businesses, the scheme is critical in enhancing the msme loan Bihar ecosystem. It provides funding, coaching, and start-up to start-ups interested in leaving a mark. It has such opportunities as interest-free seed funding, sustenance allowances, and so the small business can expand. In case you are interested in Bihar MSME loan, this policy provides an exciting platform to convert the innovative concepts into a viable business venture.
Key Features:
- Seed Funding Assistance: Up to ₹10 lakhs as interest-free loan for early-stage startups
- Sustenance Allowance: ₹20,000 per month for up to one year
- Product Development Grant: Up to ₹2 lakhs for prototype creation
- Eligibility: Must be registered as a startup and operate in Bihar
- Target Sector: Technology, agriculture, manufacturing, and other MSMEs
Bihar Industrial Investment Promotion Policy (BIIPP)
BIIPP is a pro-business policy of Bihar to fast track the growth of industries in the state. This policy provides capital subsidies, tax benefits and interest subsidies to promote entrepreneurs particularly in the MSME sector. Individuals seeking msme loan Bihar advantages can find a perfect combination of incentives in BIIPP that would allow decreasing start-up costs and guarantee long-term development. The Bihar MSME loan seekers can benefit a lot by streamlining themselves with the benefits provided under BIIPP, whether it is the launch of a new unit or the expansion of an existing one.
Key Highlights:
- Capital Subsidy: Up to 30% of the total fixed capital investment
- Interest Subvention: Up to 5% for 5 years on term loans
- Electricity Duty Exemption: 100% for 5 years
- Eligible Sectors: Manufacturing, agro-processing, textiles, food processing, etc.
- MSME Focus: Special incentives for MSMEs, women-led, and SC/ST enterprises
Why Choose Finline for the Project Reports for Bank Loans?
Finding the right scheme can be a game changer in case you intend to start or extend your business in Bihar. The government has numerous financial assistance programs in the form of start up friendly policies, interest subsidized loans and many more under different schemes of msme loan Bihar. As a young entrepreneur or an established business owner, these initiatives are meant to make you grow with ease.
The first step that must be taken in order to maximize any Bihar msme loan is to have a good project report. Here is where Finline comes in. Finline is an online platform that can assist you in creating professional financial reports, just like Canva but with business plans. Using Finline, you can create a bank-agreeable project report within ten minutes and in any language of your choice.
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