When you think about starting a small business in Bihar, what’s the first hurdle that comes to mind? For most, it’s finance. Access to formal credit, especially without collateral, is not easy for small shopkeepers, artisans, or service providers in rural towns. This is where the PM Mudra Yojana (Pradhan Mantri Mudra Yojana) steps in—turning business dreams into real, sustainable ventures.
Let’s break it all down in a simple, clear format so that every aspiring entrepreneur from Patna to Purnea understands how this scheme works and how it can benefit them.
What is PM Mudra Yojana?
Launched in April 2015, PM Mudra Yojana is a government scheme that provides loans up to ₹10 lakh to micro and small enterprises. The best part? No need for any security or collateral. Yes, you read that right.
Whether you’re running a dairy, opening a tailoring shop, starting a coaching center, or setting up a mobile repair kiosk – this scheme supports all such businesses under three simple categories.
Categories of Mudra Loans
Shishu Loan (₹50,000 or less)
Perfect for people just starting out or those needing basic setup capital.
Kishor Loan (₹50,001 to ₹5 lakh)
Ideal for small business owners looking to expand or add more inventory.
Tarun Loan (₹5 lakh to ₹10 lakh)
Best suited for stable businesses needing larger capital for scaling.
These categories ensure that your loan matches your business needs without overburdening you.
Who Can Apply?
The PM Mudra Yojana is open to:
- First-time business owners
- Street vendors
- Shopkeepers
- Artisans
- Service providers
- Small manufacturers
The scheme is especially helpful for youth, women entrepreneurs, and SC/ST candidates. No need to own property or show big bank balances—just a good plan and some confidence.
Required Documents
Getting a Mudra loan doesn’t mean loads of paperwork. All you need is:
- Aadhaar and PAN Card
- Passport-size photo
- Proof of business (shop license, GST, etc.)
- Bank passbook or statement
- Business plan (if applying for Kishor or Tarun)
Keep your documents clean and organized—it helps banks process your request faster.
How to Apply for PM Mudra Yojana
You have two ways to apply:
✅ Offline:
Walk into any bank—SBI, PNB, Bank of Baroda, Canara Bank, or others. Ask for the Mudra loan form. Fill it, attach documents, and submit. Simple!
✅ Online:
Visit www.udyamimitra.in
- Register and choose your Mudra loan category
- Upload required documents
- Track your application online
Banks and NBFCs are also available on this platform.
Benefits of PM Mudra Yojana
Here’s why this scheme is such a hit across India, especially in states like Bihar:
- No collateral needed
- Low interest rates (starting around 8%)
- No processing fee for Shishu loans
- Flexible repayment up to 5 years
- Special support for women and backward class entrepreneurs
- Encourages financial inclusion in small towns and villages
In fact, more than 30 crore loans have been given under this scheme across India. Bihar alone has seen lakhs of approvals.
Real Impact in Bihar
From tea stalls in Darbhanga to boutique shops in Muzaffarpur, real people are changing their lives using the PM Mudra Yojana. Local banks report high participation in districts like Nalanda, Siwan, and Araria.
Entrepreneurs like Rina Devi, who started a spice grinding unit in Vaishali, say the Mudra loan gave her the push she needed to become independent. These are not just stories—they’re real milestones in Bihar’s development.
Tips to Get Loan Approved Easily
- Have a simple but clear business plan
- Choose the right loan category
- Keep all documents ready
- Visit your bank during business hours and speak politely
- Follow up every 7–10 days after submission
Banks often have camps or “loan melas” during festive or financial quarters—keep an eye on announcements via Bihar News.
Conclusion: PM Mudra Yojana is Not Just a Loan, It’s a Movement
The PM Mudra Yojana has proved that with the right support, even the smallest idea can grow into a profitable business. For Bihar’s hardworking and aspiring entrepreneurs, this is a golden opportunity.
So, if you have a dream and the will to make it work, don’t wait. Gather your documents, visit your nearest bank, or apply online—and take your first step towards financial independence.
For more government schemes, business tips, and Bihar-specific updates, stay connected with Bihar News—your go-to platform for real, reliable information.
