Bihar Chief Minister Nitish Kumar unveiled a startup loan scheme on 14 June 2025, offering up to ₹10 lakh interest-free loans, with ₹5 lakh as a subsidy, to boost entrepreneurship. Aimed at youth and women, the initiative seeks to create jobs and foster economic growth. Over 1,500 startups have already registered under the Bihar Startup Policy, signaling a vibrant entrepreneurial ecosystem.
Bihar’s Startup Revolution: Nitish Kumar’s ₹10 Lakh Loan Scheme
On 14 June 2025, Bihar Chief Minister Nitish Kumar launched an ambitious initiative to propel the state’s startup ecosystem, announcing interest-free loans of up to ₹10 lakh for aspiring entrepreneurs. The scheme, an extension of the Bihar Startup Policy introduced in July 2022, is designed to empower youth and women by providing financial support to establish new businesses and small industries. Out of the ₹10 lakh, ₹5 lakh is offered as a subsidy, with the remaining ₹5 lakh to be repaid in installments over seven years, easing the financial burden on budding entrepreneurs.
The announcement, made during an event in Patna, builds on the success of existing programs like the Mukhyamantri Yuva Udyami Yojana (MYUY) and Mukhyamantri Mahila Udyami Yojana (MMUY). These schemes have already supported thousands of young and female entrepreneurs in Bihar, with over 1,522 startups registered as of May 2025, according to the state’s Industries Department. The government has disbursed ₹62.5 crore to these ventures, fostering a diverse range of industries, from technology to traditional crafts, and promoting inclusive economic growth.
Kumar emphasized that the initiative aligns with his government’s goal of generating 20 lakh employment opportunities during its current tenure. “We are committed to making Bihar a hub of innovation and self-reliance,” he said, highlighting the role of startups in addressing unemployment and boosting the state’s economy. The scheme also offers additional incentives, including a 5% enhanced benefit for female entrepreneurs and ₹3 lakh grants for startups undergoing rigorous training in product development and finance.
To streamline access, the Bihar government has established a dedicated startup portal, enabling entrepreneurs to register and apply for benefits seamlessly. District-level steering committees, led by local ministers, ensure that projects are tailored to regional needs, further strengthening the initiative’s impact. The policy also provides shared office spaces and other amenities to support early-stage businesses.
The timing of the announcement, ahead of the 2025 Bihar Assembly elections, has sparked discussions about its political implications. Opposition leaders, including Rashtriya Janata Dal’s Tejashwi Yadav, have claimed that the scheme mirrors their own poll promises. However, Kumar’s administration maintains that the focus is on sustainable development and empowering marginalized communities, including women and economically disadvantaged groups.
Recent data underscores the scheme’s potential impact. Bihar’s startup ecosystem has seen significant growth, with the state emerging as a promising destination for entrepreneurs. The policy’s emphasis on inclusivity has increased participation from women and traditionally marginalized communities, signaling a shift in Bihar’s socio-economic landscape. As the state gears up for elections, this initiative could play a pivotal role in shaping Bihar’s economic future, positioning it as a leader in India’s startup revolution.
Disclaimer: This article is based on reports from credible sources, including government announcements and media coverage from outlets like The Hindu, Times of India, and Navbharat Times, as well as updates from the Bihar Startup Policy portal. Information is accurate as of 14 June 2025. Readers are advised to verify details through official government channels.