The Mukhyamantri Alpsankhyak Rozgar Rinn Yojana is a flagship initiative by the Minority Welfare Department, Government of Bihar, implemented through the Bihar State Minorities Financial Corporation Limited (BSMFC). The scheme aims to provide financial assistance to youth from minority communities (Muslim, Sikh, Christian, Buddhist, Jain, and Parsi) to generate employment opportunities and promote self-reliance.
Under this program, loans up to ₹5,00,000 are provided at a simple annual interest rate of 5%. The loan must be repaid over a period of 5 years in 20 equal quarterly installments. This state-sponsored scheme prioritizes applicants based on their socio-economic background, ensuring inclusivity and equitable access to resources.
Key Benefits of the Scheme
- Loan Amount: Up to ₹5,00,000 for income-generating activities.
- Interest Rate: A simple annual interest rate of 5% after a 3-month moratorium period.
- Repayment Period: 5 years (20 quarterly installments).
- Processing Fee: A nominal fee of 0.5% of the sanctioned amount is deducted before disbursement.
- Rebate: A 0.5% rebate on outstanding interest is provided if the loan is repaid on time.
- Penalty: Compounded interest is levied for delayed payments.
Loan Disbursement Details
Disbursement Process
- For loans exceeding ₹1,00,000: The amount is transferred to the vendor’s account after receiving a quotation or proforma invoice.
- For loans below ₹1,00,000: The amount is directly transferred to the applicant’s bank account via RTGS.
Guarantor Requirements
- Upto ₹1,00,000: Self-guarantee or guarantee from an individual with a rent receipt or related document.
- Above ₹1,00,000: Guarantee from a government/semi-government employee, income tax payer, or authorized professional (e.g., Anganwadi worker, teacher, etc.).
Eligibility Criteria
To qualify for the Mukhyamantri Alpsankhyak Rozgar Rinn Yojana, applicants must meet the following criteria;
General Eligibility
- Residency: Must be a permanent resident of Bihar.
- Community: Should belong to a minority community (Muslim, Sikh, Christian, Buddhist, Jain, or Parsi).
- Age: Between 18 and 50 years.
- Income: Annual family income should be less than ₹4,00,000.
Additional Requirements
- Employment Status: Should not be a government or semi-government employee.
- Purpose of Loan: The loan must be used exclusively for employment and income-generation activities.
- Documentation: Applicants from non-Muslim minority communities must submit a religious belief certificate issued by a recognized authority.
Priority Criteria
Preference is given to applicants who meet one or more of the following conditions:
- Have educational qualifications or training under a skill development program.
- Reside in rural areas.
- Women, disabled, abandoned, or widowed.
- They are aged between 18 and 35 years.
- Are members of registered cooperatives, federations, or self-help groups (SHGs).
- Have prior experience or are shopkeepers.
How to Apply – Offline Process
The application process for the scheme is offline and involves the following steps;
Step-by-Step Process
- Advertisement: The BSMFC publishes advertisements in local newspapers inviting applications.
- Application Submission: Interested candidates must submit the application form along with required documents to the District Minority Welfare Office (DMWO) in their district of permanent residence.
- Site Inspection: A site inspection and document verification are conducted by the divisional in-charge, who prepares a report and provides recommendations.
- Documentation: Selected applicants are required to submit additional documents such as affidavits, agreement letters, guarantee bonds, and hypothecation forms at the regional office.
- Loan Sanction: After successful verification and completion of documentation, the loan amount is sanctioned and disbursed.
Necessary Documents for Application
To ensure a smooth application process, gather the following documents;
- Identity Proof: Aadhaar Card.
- Passport-Size Photographs: Recent photographs.
- Proof of Age: Birth certificate or other valid proof.
- Educational Qualification/Training Certificate: If applicable.
- Bank Passbook Copy: Showing bank name, account number, and IFSC code.
- Caste/Community Certificate: Issued by a competent authority.
- Income Certificate: Issued by SDO, BDO, or CO.
- Residence Certificate: Issued by a competent authority.
- Disability Certificate: If applicable.
- Additional Documents: As specified during the application process.
Frequently Asked Questions (FAQs)
Which communities are eligible for this scheme?
The scheme is open to individuals from minority communities, including Muslims, Sikhs, Christians, Buddhists, Jains, and Parsis.
What is the interest rate charged on the loan?
A simple annual interest rate of 5% is charged after a 3-month moratorium period.
What is the maximum loan amount available under this scheme?
The maximum loan amount is ₹5,00,000.
What is the loan repayment period?
The loan must be repaid over 5 years in 20 equal quarterly installments.
Are there any additional charges involved in this scheme?
Yes, a processing fee of 0.5% of the sanctioned amount is deducted before disbursement.
Is there any rebate for timely repayment?
Yes, a 0.5% rebate on outstanding interest is provided if the loan is repaid on time.
What happens if I fail to repay the loan on time?
Compounded interest will be recovered at the end of the financial year for delayed payments.
What are the eligibility criteria for applying to the scheme?
Applicants must be permanent residents of Bihar, belong to a minority community, and have an annual family income of less than ₹4,00,000.
Can women apply for the scheme?
Yes, women are eligible and are given priority under the scheme.
Do I need to provide a guarantor for the loan?
Yes, a guarantor is required depending on the loan amount.
What is the moratorium period?
The moratorium period is 3 months, after which interest starts accruing.
How is the loan amount disbursed?
For loans above ₹1,00,000, the amount is transferred to the vendor’s account. For loans below ₹1,00,000, it is transferred directly to the applicant’s account.
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 fully repaid their loans on time are exempt from the selection and site inspection process for a new loan.
Conclusion
The Mukhyamantri Alpsankhyak Rozgar Rinn Yojana is a transformative initiative aimed at empowering minority youth in Bihar by providing them with financial support for self-employment and entrepreneurship. By offering affordable loans, flexible repayment terms, and incentives for timely repayment, the scheme ensures that marginalized communities can achieve economic independence and contribute to the state’s development.
If you’re a resident of Bihar and belong to a minority community, don’t miss out on this opportunity to secure your future. Visit your nearest District Minority Welfare Office today and take the first step toward financial empowerment!
