The “Mukhyamantri Alpsankhyak Rozgar Rinn Yojana” was launched by the Minority Welfare Department, Government of Bihar, with the objective of providing employment-generating loans to youths from minority communities—namely Muslim, Sikh, Christian, Buddhist, Jain, and Parsi. This state-sponsored scheme, implemented by the Bihar State Minorities Financial Corporation Limited (BSMFC), offers loans up to ₹5,00,000 at a simple annual interest rate of 5%, which must be repaid in 20 equal quarterly installments over 5 years.
Benefits
- Loan Amount:
Loans of up to ₹5,00,000 are provided at a simple annual interest rate of 5%. - Disbursement:
After the sanction order, the loan amount is transferred via RTGS. For amounts exceeding ₹1,00,000 per unit of equipment/machines, funds are transferred to the vendor’s account upon submission of a quotation or proforma invoice; amounts less than ₹1,00,000 are transferred directly to the applicant’s account. - Repayment:
The loan is to be repaid in 20 equal quarterly installments. A 3-month moratorium is provided before interest accrues. - Processing Charge & Rebate:
A processing fee of 0.5% is deducted from the sanctioned amount, and a 0.5% rebate on the outstanding interest is offered if the full loan is repaid on time. - Penalty & Post-dated Cheques:
Late EMI payments attract compounded interest at the end of the financial year. Applicants are required to submit 10 to 20 post-dated cheques.
Eligibility
- Residency:
The applicant must be a permanent resident of Bihar and must apply in their district of permanent residence. - Minority Community:
Only youths belonging to Muslim, Sikh, Christian, Buddhist, Jain, or Parsi communities are eligible. Applicants from all minority communities except Muslims must submit a religious belief certificate from a recognized religious body. - Age:
The applicant’s age should be between 18 and 50 years. - Employment:
The applicant should not be a government or semi-government employee. - Income:
The applicant’s annual family income must be less than ₹4,00,000. - Usage:
The loan must be used exclusively for employment and income-generation activities.
Priority Criteria:
- Former beneficiaries who have repaid their loans on time are exempt from the selection and site inspection process.
- Preference is given to applicants who are educated or trained under a skill development scheme, reside in rural areas, are women, disabled, abandoned, or widowed, are between 18 to 35 years, or are members of a government-registered cooperative, federation, or self-help group (SHG), as well as experienced applicants or shopkeepers.
Guarantor Requirements:
- For Loans Up to ₹1,00,000:
A self-guarantee or guarantee by a person possessing supporting documents like a rent receipt. - For Loans Exceeding ₹1,00,000:
A guarantor must be a government/semi-government/bank/autonomous body employee (with at least 5 years of service remaining), an income tax payee, an Anganwadi worker, a teacher from a registered madrasa, a permanent teacher, or a mutawalli from a registered waqf with immovable properties for equitable mortgage.
Application Process
Offline
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Advertisement:
The Bihar State Minorities Financial Corporation Limited (BSMFC) will publish an advertisement in daily newspapers inviting loan applications to be submitted at the District Minority Welfare Office (DMWO). -
Submission of Application:
Interested applicants must submit the completed application form along with all required documents to the DMWO in the district where they plan to start their business. -
Site Inspection & Verification:
Prior to sanctioning the loan, a site inspection and document verification will be conducted. The divisional in-charge prepares a site inspection report and provides recommendations. -
Documentation:
The Corporation’s regional office collects additional documents from selected applicants, including affidavits, agreement letters, guarantee bonds, and hypothecation forms, which are then signed on behalf of the Corporation. -
Sanction & Disbursement:
After successful verification and completion of the documentation process, the loan is sanctioned and disbursed to the selected candidates.
Note: For further information, please contact the District Minority Welfare Office at your district headquarters.
Documents Required
- Identity Proof (Aadhaar Card)
- Passport-size Photograph
- Proof of Age
- Educational Qualification, Training, or Experience Certificate
- Photocopy of Bank Passbook (showing bank name, account number, and IFSC code)
- Caste/Community Certificate
- Income Certificate issued by a competent authority (SDO, BDO, CO)
- Residence Certificate issued by a competent authority
- Disability Certificate (if applicable)
- Any additional documents as required
Frequently Asked Questions
- Which communities are eligible for this scheme?
Eligible communities include Muslim, Sikh, Christian, Buddhist, Jain, and Parsi. - What is the interest rate charged on the loan?
The loan is offered at a simple annual interest rate of 5%. - What is the maximum loan amount available under this scheme?
Loans of up to ₹5,00,000 can be sanctioned. - What is the loan repayment period?
The loan must be repaid in 20 equal quarterly installments over 5 years. - Are there any additional charges involved in this scheme?
A processing fee of 0.5% of the sanctioned amount is deducted, and late EMI payments incur compounded interest. - Is there any rebate for timely repayment?
Yes, a 0.5% rebate on the outstanding interest is offered if the full loan is repaid on time. - What happens if I fail to repay the loan on time?
Failure to pay EMIs on time will result in compounded interest being recovered at the end of the financial year. - What are the eligibility criteria for applying to the scheme?
Applicants must be permanent residents of Bihar, belong to a minority community, be aged between 18 and 50, have an annual family income less than ₹4,00,000, and must not be government or semi-government employees. - Can women apply for the scheme?
Yes, women from minority communities are eligible. - Do I need to provide a guarantor for the loan?
Yes, depending on the loan amount, a guarantor is required as per the outlined conditions. - What is the moratorium period?
A 3-month moratorium period is provided before interest accrues. - How is the loan amount disbursed?
The loan is disbursed via RTGS; for amounts over ₹1,00,000, funds are transferred to the vendor’s account upon submission of a quotation or proforma invoice. - Can the loan be used for any purpose?
No, the loan must be used exclusively for employment and income-generation activities. - Are former beneficiaries eligible for a new loan?
Yes, former beneficiaries who have repaid their loans on time are exempt from the selection and site inspection process. - What is the process for applying?
Applications are submitted offline at the District Minority Welfare Office following the publication of an advertisement by the BSMFC. - Can I apply for a loan if I am already employed in a private job?
No, the applicant should not be a government or semi-government employee; additional eligibility regarding private employment may be specified by the authorities. - Is the scheme available to applicants from all districts in Bihar?
Yes, applicants must apply in the district of their permanent residence. - What are the sources for further details?
Refer to the official guidelines, Scheme Details (Page No. 5), and the BSMFC website.