Mukhyamantri Alpsankhyak Rozgar Rinn Yojana 2026: ₹5 Lakh Loan at 5% Interest

At a glance

About the scheme

Implemented by the Bihar State Minorities Financial Corporation Limited under the Minority Welfare Department, the Mukhyamantri Alpsankhyak Rozgar Rinn Yojana promotes self-employment among notified minority communities. Residents of Bihar aged between 18 and 50 years can avail of financial support of up to ₹5,00,000 to establish small businesses or income-generating units. The loan carries an affordable 5% simple interest rate, a 3-month moratorium, and offers an interest rebate for prompt repayment.

Benefits

• Loan assistance of up to ₹5,00,000 for starting employment or income-generating ventures
• Affordable simple annual interest rate of 5%
• Three-month moratorium period during which no interest is levied
• Repayment distributed across 20 equal quarterly instalments over 5 years
• Rebate of 0.5% on outstanding interest for timely repayment of the entire loan
• Direct bank transfer via RTGS for amounts under ₹1,00,000, or directly to the vendor for equipment purchases exceeding ₹1,00,000

Who can apply (eligibility)

• Must be a permanent resident of Bihar applying in the home district
• Must belong to a notified minority community (Muslim, Christian, Sikh, Buddhist, Jain, or Parsi)
• Applicant must be between 18 and 50 years of age
• Total annual family income must be less than ₹4,00,000
• Must not be an employee of any government or semi-government organization
• Must use the sanctioned loan exclusively for employment or income-generating activities
• Non-Muslim applicants must provide a religious belief certificate from a recognised religious body
• Adequate guarantor required: self-guarantee or rent receipt holder for loans up to ₹1,00,000; government/bank employee, tax payer, Anganwadi worker, or waqf mutawalli for loans above ₹1,00,000

Who cannot apply

• Government or semi-government employees
• Applicants with an annual family income of ₹4,00,000 or higher
• Non-residents of Bihar
• Applicants seeking loans for activities unrelated to self-employment or income generation

Documents required

• Aadhaar card as proof of identity
• Recent passport-size photograph
• Proof of age (birth certificate or school matriculation certificate)
• Educational qualification, skill training, or trade experience certificate
• Bank passbook photocopy showing bank name, account number, and IFSC code
• Caste or community certificate (or religious belief certificate)
• Income certificate issued by a competent authority (SDO, BDO, or CO)
• Residential certificate issued by a competent authority
• Disability certificate (if applicable)
• 10 to 20 post-dated cheques
• Required affidavits, guarantee bonds, agreement letters, and hypothecation documents

How to apply

1. 1Track the official advertisement released by the Bihar State Minorities Financial Corporation Limited in regional newspapers.
2. 2Obtain the official application form from the District Minority Welfare Office (DMWO) in your home district.
3. 3Fill in the application details and attach self-attested copies of all mandatory documents.
4. 4Submit the completed application pack directly to the District Minority Welfare Office where you plan to establish the business.
5. 5Cooperate with department officials during the physical site inspection and document verification process.
6. 6Submit additional required legal documents such as affidavits, agreement forms, guarantee bonds, and post-dated cheques at the regional office.
7. 7Receive the sanctioned loan disbursement through RTGS into your bank account or directly to the machinery vendor.

Frequently asked questions