Bihar Laghu Udyami Yojana 2026: Rs 2 Lakh Grant, Eligibility and Apply Online

Intro (roadmap teaser)

If you live in Bihar and dream of starting your own small business, but a lack of money keeps stopping you, this article is for you.

In this post, we will tell you the complete truth – what this scheme really is, how much help you get and in what form, who is eligible and who is not, what the application process looks like, how selection works, how the money arrives in installments, and most importantly – what the latest status of applications is in 2026.

Quick-facts table

Information	Details
Scheme name	Mukhyamantri Laghu Udyami Yojana (Bihar Laghu Udyami Yojana)
Implementing department	Industries Department, Government of Bihar (Directorate of Micro, Small and Medium Enterprises)
Nature of benefit	Grant – does not have to be repaid
Total assistance	Rs 2,00,000
Installments	3 installments – 25% + 50% + 25%
Eligible families	Poor families with monthly family income below Rs 6,000
Per family	Only 1 member
Age limit	18 to 50 years
Minimum education	No minimum education required
Approved businesses	62 types of small industries / businesses
Application mode	Online only, free of cost
Official portals	laghuudyami.bihar.gov.in and udyami.bihar.gov.in
Toll-free helpline	1800-345-6214
Email	dir-msme.ind-bih@gov.in

What Is Bihar Laghu Udyami Yojana – First Understand This Clearly

Bihar Laghu Udyami Yojana is a self-employment scheme of the Government of Bihar. Its aim is to give money to economically weak families so they can start their own small business. The biggest feature of this scheme is that the money given is a grant, not a loan. It does not have to be repaid – whether the business succeeds or not.

Many people confuse this scheme with the Mukhyamantri Udyami Yojana. Both are Bihar government schemes, both share the same portal and helpline, but they are completely different. Remember one important rule – you can take the benefit of only ONE of the two schemes. If you have already taken the benefit of the Mukhyamantri Udyami Yojana, you will not be eligible for the Laghu Udyami Yojana.

Laghu Udyami vs Mukhyamantri Udyami Yojana – Know the Difference

Point	Laghu Udyami Yojana	Mukhyamantri Udyami Yojana
Total assistance	Up to Rs 2 lakh	Up to Rs 10 lakh
Nature of assistance	Full grant (100%), no repayment	Rs 5 lakh grant + Rs 5 lakh interest-free loan (repayable in 84 installments)
Target group	Poor families (monthly income below Rs 6,000)	SC / ST / EBC / Women / Youth / Minority / Divyangjan categories
Minimum education	None	At least Class 12 pass (or ITI / Polytechnic / Diploma)
Age limit	18-50 years	18-50 years
Selection	Computer lottery (random)	Computer lottery
Portal	laghuudyami.bihar.gov.in	udyami.bihar.gov.in

This table makes it clear that the Laghu Udyami Yojana is meant for families with very low income, who can start a business even without any major educational qualification.

How Much Money You Get and How – The Full 3-Installment Calculation

The total of Rs 2,00,000 comes in three installments. As per the Industries Department resolution (16 January 2024), the installments work like this:

Installment	Share	Amount	When it is released
First installment	25%	Rs 50,000	After selection + mandatory training, to buy toolkit / machinery
Second installment	50%	Rs 1,00,000	After correct utilisation of the first installment (utilisation certificate)
Third installment	25%	Rs 50,000	After correct utilisation of the second installment

One more thing to note – 5% of the amount per unit is kept separately for training and project monitoring. This means the government does not only give money, it also gives training to run the business. And every next installment comes only after the correct use of the previous one is proved. That is why keeping bills and receipts safely is very important.

Who Can Apply – Eligibility Conditions

Permanent resident of Bihar – the Aadhaar card must show a Bihar address.
Age between 18 and 50 years.
Monthly family income below Rs 6,000 (annual income below Rs 72,000). An income certificate will be needed for this.
Only 1 member per family can apply – one of husband, wife, or unmarried son / daughter.
No minimum education required – whether you failed Class 10 or hold a PhD, everyone gets an equal chance.
Government employees are not eligible for this scheme.
People who have already taken the benefit of the Mukhyamantri Udyami Yojana are not eligible.
The family name should be in the government survey list of poor families.

Required Documents – Keep Them Ready in Advance

The application window opens only for a few days, so keep your documents ready beforehand:

Aadhaar Card – clear scan of both sides (PDF / JPG), Bihar address clearly visible.
Income Certificate (Aay Praman Patra) – the most important document. Monthly family income must be below Rs 6,000. It is made online through the RTPS portal (serviceonline.bihar.gov.in) and issued by the Block Development Officer (BDO). It can take 7-15 days to get – so start getting it made right now.
Caste Certificate – for SC / ST / OBC / Minority categories, from the RTPS portal.
Residence Certificate (Niwas Praman Patra) – of the current or previous financial year.
Bank Passbook – scan of the first page, showing account number, IFSC code and name exactly matching Aadhaar. The account must be Aadhaar-linked.
Passport-size Photo – recent photo with white background.
Age Proof – Class 10 marksheet or birth certificate.
Self-Declaration Form – will be downloaded from the portal and comes with the form.

Clearing a common confusion: LPC (Land Possession Certificate) is NOT needed for this scheme. This confusion spreads because some bank loans ask for LPC, but this grant scheme does not need it.

For Which 62 Businesses Is the Money Given?

The Bihar government has included 62 types of small industries / businesses in this scheme. Understand them by category:

Category	Examples
Food processing	Atta-sattu-besan, oil mill, dal mill, spice production, bakery, ice cream, jam-jelly-sauce, makhana processing, honey processing, poha-chura, fruit juice
Textile and stitching	Readymade garments, bedsheet-pillow covers, embroidery, powerloom
Leather products	Leather shoes, bags-belts-wallets, leather jackets
Wood and furniture	Carpentry, steel furniture, bamboo-cane furniture
Construction material	Cement jali-doors-windows, concrete hume pipe, rolling shutters
Service businesses	Auto garage, dry cleaning, dhaba-hotel-restaurant, pathological testing lab, flex printing
Electronics and IT	Computer hardware assembling, stabilizer-inverter-UPS assembling, cooler manufacturing, IT business centre
Agriculture-based	Cattle feed, poultry feed, seed processing-packaging, agri equipment manufacturing, banana fibre
Others	Disposable diaper-sanitary napkin, detergent-soap-shampoo, notebook-copy production, plastic items, sports shoes, EV assembling, drone

At the time of application, you have to choose one of these 62 businesses. The department has also prepared a model project report (DPR) for each business, which is available on the official portal.

How to Apply – Step-by-Step Process

Step 1 – Open the official portal: Go to laghuudyami.bihar.gov.in. This is the official website. Information and selection lists are also available on udyami.bihar.gov.in.

Step 2 – Register: Enter your Aadhaar number. An OTP will come to the Aadhaar-linked mobile. Complete registration with the OTP. Fill details exactly as per Aadhaar.

Step 3 – Login and fill the form: Login again with Aadhaar number and OTP. Fill personal details, family details and bank account details.

Step 4 – Choose your business: Select your business from the 62 approved businesses.

Step 5 – Upload documents: Upload all required documents in the prescribed format. A photo can also be taken through the webcam.

Step 6 – Check and submit: Before submitting, check all information once again, because no changes are possible after submission. Keep the application number (acknowledgement slip) safe.

Step 7 – Verification and selection: Document verification will happen at the block level, then approval from the District Industry Centre (DIC). After that, selection happens through computer lottery.

Step 8 – Training: After selection, mandatory training at the District Industry Centre has to be attended. Only after this is the first installment released.

How Selection Happens – The Truth About the Lottery

Selection in this scheme happens neither on merit, nor on a first-come-first-served basis. Selection is done through computer lottery (computerised randomisation). This means:

Marks or percentage do not matter – a Class 10 fail and a PhD holder get an equal chance.
Applying early gives no advantage – apply any time before the last date, it makes no difference.
Only eligibility matters – if you are eligible, your name goes into the lottery.
Waiting List – after the selection list is filled, about 20% of names are kept in a waiting list. If selected people documents fail, waiting-list candidates get a chance.

Latest Application Status in 2026 – Know the Truth

Important: The official dates for applications in 2026 have not been announced yet. The department opens the application window from time to time and announces it on the official portal. So do not treat any date told in a WhatsApp message or YouTube video as final truth.

The 2025 experience can work as a reference:

2025 event	Date
Applications opened	19 February 2025
Last date to apply	5 March 2025
Selection list	7 March 2025
Final list	25 March 2025

A similar window can be expected in 2026, but this is only an estimate – wait for the official announcement and keep your documents ready till then, especially the income certificate, which takes 7-15 days.

How to Check Installment Status

Method 1 – Portal login: Go to laghuudyami.bihar.gov.in, login with Aadhaar number and OTP. Your application and installment status will show on the dashboard.

Method 2 – Selection list: Go to udyami.bihar.gov.in, open the Latest Updates or Result section. Download the district-wise and category-wise selection list PDF and look for your name.

Why Applications Get Rejected – Avoid These Mistakes

Wrong Aadhaar details or Aadhaar-linked mobile number switched off.
Incomplete or wrong documents – especially an invalid income certificate.
Two applications from the same family – duplicate applications are automatically rejected.
Already having taken the Mukhyamantri Udyami Yojana benefit.
Bank account not linked with Aadhaar – DBT gets stuck.
Not meeting the eligibility conditions.

Scam Alert – Save Yourself From Frauds

Fraud claim	Truth
We will get your application done for Rs 5,000	FRAUD – application is completely free
We will guarantee your selection	FRAUD – selection is by lottery, nobody can guarantee it
Through an agent it will be faster	FRAUD – the process is the same for everyone
Fill an offline form, pay Rs 2,000	FRAUD – application is online only
Fake websites (like udyami-bihar.com)	FRAUD – only laghuudyami.bihar.gov.in and udyami.bihar.gov.in are official

Remember – if anyone asks for money, understand it is a fraud. Trust only .gov.in or .nic.in websites. A CSC centre may charge a small fee for online help, but the application itself is free.

Contact Details

Department: Directorate, Micro, Small and Medium Enterprises, Industries Department, Vikas Bhawan, 2nd Floor, New Secretariat, Nehru Road, Patna, Bihar – 800015
Toll-free number: 1800-345-6214
Email: dir-msme.ind-bih@gov.in
Portal: laghuudyami.bihar.gov.in

FAQ – Frequently Asked Questions

1. Is the money under Bihar Laghu Udyami Yojana a loan?
No. It is a full grant. Not a single rupee has to be repaid – whether the business runs or not.

2. How many people from one family can apply?
Only 1 member – one of husband, wife, or unmarried son / daughter.

3. Is there any fee for application?
Absolutely not. Application is completely free. If someone asks for money, it is a fraud.

4. Is selection by merit or by lottery?
By lottery. The computer does a random selection. Marks, percentage or education do not matter – only eligibility is checked.

5. When will forms be filled in 2026?
Official dates have not been announced yet. In 2025, the window was open from 19 February to 5 March. Keep checking laghuudyami.bihar.gov.in for the fresh announcement.

6. Will the money come directly to the bank?
Yes, through DBT into the Aadhaar-linked bank account. That is why the account must be Aadhaar-linked.

7. Can I take the benefit of both Laghu Udyami and Mukhyamantri Udyami schemes?
No. You can get the benefit of only one of the two schemes.

8. How do I get the Income Certificate made?
Apply online on the RTPS Bihar portal (serviceonline.bihar.gov.in). It is issued by the BDO office and can take 7-15 days.

9. If the business fails, will I have to return the money?
No, it is a grant. Even if the business fails, the money does not have to be returned.

10. What should I do if my name is not in the selection list?
First check the waiting list – about 20% of names are in it. If your name is not there either, wait for the next application window and keep your documents ready.

Disclaimer

This is a private information portal, not a government website. For the latest information on the scheme, always check the official portal laghuudyami.bihar.gov.in.