Mukhyamantri Alpsankhyak Rozgar Rin Yojana, Bihar
Bihar state government scheme
Mukhyamantri Alpsankhyak Rozgar Rin Yojana is a Bihar Minority Welfare Department scheme that lends up to Rs 5 lakh at 5 per cent simple interest to minority-community applicants aged 18 to 50 whose family income is under Rs 4 lakh a year. Repayment runs to 20 quarterly instalments, and applications are made at the District Minority Welfare Office.
What is Mukhyamantri Alpsankhyak Rozgar Rin Yojana?
Mukhyamantri Alpsankhyak Rozgar Rin Yojana (MMARRY) is the flagship self-employment loan scheme of the Bihar State Minorities Financial Corporation Limited (BSMFC), which works under the Minority Welfare Department, Government of Bihar. BSMFC was incorporated on 23 March 1984 with the objective of promoting economic and developmental activity among the backward sections of the notified minorities, with preference to occupational groups and women.
According to the corporation's own FAQ, Mukhyamantri Alpsankhyak Rozgar Rin Yojana is a scheme for providing loans up to Rs 5 lakh for business and employment generation to youth of the minority communities. BSMFC is one of only two schemes the corporation implements, the other being the Mukhyamantri Shram Shakti Yojana, which is a training scheme rather than a loan.
Financial terms, from the BSMFC scheme document
- Loan ceiling: Rs 5,00,000.
- Interest: 5 per cent simple interest, levied after a three-month moratorium.
- Repayment: 20 equal quarterly instalments.
- Processing charge: 0.5 per cent of the sanctioned amount, deducted before the RTGS payment.
- Rebate: 0.5 per cent waiver on outstanding interest if the entire loan is repaid on schedule.
- Penalty: compounded interest recovered at the end of the financial year where instalments are not paid on time.
Funding and reach
The Government of Bihar allotted Rs 25 crore a year to the scheme from 2012-16, Rs 75 crore in 2016-17, and Rs 100 crore for each financial year from 2017-18 onwards. Loan recoveries are recycled as a revolving fund for further lending. BSMFC reaches applicants through a District Minority Welfare Office (DMWO) in every district plus the head office in Patna, and funds are distributed in a 70:30 ratio between rural and urban applicants.
Who is eligible for the minority employment loan in Bihar?
The conditions below come from the BSMFC scheme presentation and FAQ.
You can apply if:
- You belong to a notified minority community, Muslim, Sikh, Christian, Buddhist, Parsi or Jain. Jains were added to the notified list by the Government of India notification dated 27 January 2014.
- Your age is between 18 and 50 years.
- Your annual family income is less than Rs 4,00,000.
- You are applying in your district of permanent residence; the benefit is availed from that district only.
- You will use the loan for employment and income generation only.
- You can produce income and residence certificates issued by a competent authority, meaning the SDO, BDO or Circle Officer.
You cannot apply / are not eligible if:
- You are in government or semi-government service. The scheme document is explicit that the applicant must not be in such service.
- Your family income is Rs 4,00,000 or more a year.
- You are below 18 or above 50 years of age.
- You do not belong to one of the six notified minority communities.
- You are applying outside your district of permanent residence.
- You cannot arrange the guarantor required for the amount you are seeking.
Applicants of every minority community except Muslims must additionally produce a religious belief certificate from their religious body. This applies to Christians, Sikhs, Parsis, Buddhists and Jains.
What kinds of business can the loan be used for?
BSMFC groups eligible activities into two slabs.
Up to Rs 2 lakh: beauty parlour, general store, stationery shop, bangle and lac shop, grocery shop, electrical goods shop, crockery shop, plastics shop, automobile repair, spare parts shop, steel fabrication works, tailoring and embroidery shop, tea and snacks stall, meat shop, tyre and tube repair, egg shop, candle and incense-stick making, motor rewinding, applique work, jute bag manufacture, mobile and laptop repair, flour mill and spice grinding, oil ghani, e-rickshaw, and fruit and vegetable vending.
Above Rs 2 lakh and up to Rs 5 lakh — mobile shop, block printing machine, bangle and lac factory, ice unit, gate and grill fabrication, rice or chura mill, generator, desktop printing, computer spares and shop, tempo, minivan or passenger vehicle, readymade garments, furniture shop, footwear shop, cloth shop, grain trading, building material, medicine shop, poultry, electronics goods shop, mineral water shop, jewellery shop, hardware shop, pathology, coaching institute, bag factory, bakery, flex and digital printing shop, medical equipment manufacturing, steel fabrication and tyre-tube shop.
What documents are required?
| Document | Mandatory | Notes |
|---|---|---|
| Age proof | Yes | Applicant must be 18 to 50 |
| Income certificate | Yes | From SDO, BDO or Circle Officer; family income under Rs 4 lakh |
| Residence certificate | Yes | From SDO, BDO or Circle Officer |
| Religious belief certificate | For non-Muslim minorities | From the applicant's religious body |
| Guarantor documents | Yes | Norm varies above and below Rs 1 lakh |
| Bank passbook | Yes | Disbursement is by RTGS |
| Quotation or proforma bill | If above Rs 1 lakh | Machinery money goes directly to the vendor |
| Post-dated cheques | Yes | 10 to 20 cheques against the repayment schedule |
How to apply for Mukhyamantri Alpsankhyak Rozgar Rin Yojana
- Watch for the advertisement. BSMFC publishes an advertisement announcing the availability of application forms and the place of submission at the District Minority Welfare Office for each round of the scheme.
- Collect and fill the application form at your District Minority Welfare Office, choosing an activity from the corporation's list of approved trades.
- Attach the documents: age proof, income and residence certificates from the SDO, BDO or Circle Officer, the religious belief certificate if you are not a Muslim applicant, guarantor papers, bank passbook copy and, for amounts above Rs 1 lakh, the vendor's quotation.
- Submit the application at the DMWO and take the acknowledgement.
- Await the Selection Committee. The district committee is chaired by the Deputy Development Commissioner or his representative, with the District Minority Welfare Officer as Member Secretary, an officer from the District Industry Centre, an officer nominated by the Managing Director of BSMFC, and two non-government social workers from the minority community appointed by the Minority Welfare Department.
- Spot verification. Before the loan is sanctioned to a selected candidate, a spot verification report is submitted by the Commissionery In-charge, who also counter-signs the selected candidate's documents.
- Sanction and disbursement. After the Sanction Order is issued, the money is transferred by RTGS. Amounts of more than Rs 1 lakh per unit of equipment or machinery go to the vendor's account against the quotation or proforma bill; amounts under Rs 1 lakh are transferred directly to the applicant's account.
- Deposit the post-dated cheques and begin repayment from the first quarter after the three-month moratorium.
How to check your application and repayment status
- Open bsmfc.org and go to the scheme section for Mukhyamantri Alpsankhyak Rozgar Rinn Yojna.
- Check the Selection List and Waiting List and the year-wise Sanction Orders published there to see whether your case has been sanctioned.
- Use the BSMFC Database menu for the MMARRY sanctioned-amount reports and the Download menu for UTR details of released payments and the No Dues Certificate once the loan is cleared.
- For anything not shown online, contact your District Minority Welfare Officer; the DMWO contact list is published under the Contact menu.
Common reasons an MMARRY application fails
- Income certificate showing Rs 4 lakh or more, or a certificate issued by an authority other than the SDO, BDO or Circle Officer.
- Guarantor not meeting the norm for the loan amount, this is the most frequent stumbling block above Rs 1 lakh, where the guarantor must have at least five years of service left or immovable property for equitable mortgage.
- Religious belief certificate missing for a Christian, Sikh, Parsi, Buddhist or Jain applicant.
- Applying from a district other than the district of permanent residence.
- Applicant in government or semi-government service.
- Activity chosen outside the corporation's approved list, or a purely speculative proposal with no income-generating basis.
- Quotation not submitted for machinery above Rs 1 lakh, which stalls disbursement even after sanction.
Help and grievance redressal
- BSMFC head office: Abdul Qayyum Memorial Bhawan, 34 Hardinge Road, Patna
- Phone: 0612-2204975. Toll-free: 1800-345-6123. Fax: 0612-2215994.
- Email: minocorpatna@gmail.com.
- District Minority Welfare Officer (DMWO) in your district, whose contact details are listed on bsmfc.org under Contact.
- RTI applications can be filed through the RTI section of the corporation's website for information on selection or sanction.
The application form is issued at the District Minority Welfare Office and no private agent has any role in selection, which is done by the district Selection Committee. The only deduction permitted is the 0.5 per cent processing charge on the sanctioned amount.
Documents required
Frequently asked questions
How much loan is given under Mukhyamantri Alpsankhyak Rozgar Rin Yojana?
The scheme provides a loan of up to Rs 5 lakh for business and employment generation, as stated in the FAQ published by the Bihar State Minorities Financial Corporation. The corporation's scheme presentation lists projects in two slabs — up to Rs 2 lakh, and above Rs 2 lakh up to Rs 5 lakh.
What is the interest rate on the minority employment loan in Bihar?
Interest is charged at 5 per cent simple interest, levied after a three-month moratorium, according to the BSMFC scheme document. A further 0.5 per cent waiver on outstanding interest is given if the entire loan is repaid on schedule.
Who can apply for Mukhyamantri Alpsankhyak Rozgar Rin Yojana?
Members of the notified minority communities in Bihar — Muslims, Sikhs, Christians, Buddhists, Parsis and Jains — aged 18 to 50 whose annual family income is less than Rs 4 lakh and who are not in government or semi-government service. The loan must be taken in the applicant's district of permanent residence.
How is the loan repaid?
Repayment is in 20 equal quarterly instalments, beginning after the three-month moratorium, as set out in the BSMFC scheme presentation. The beneficiary deposits 10 to 20 post-dated cheques against that schedule at the time of disbursement.
Is a guarantor needed for the loan?
Yes, and the requirement depends on the amount. Up to Rs 1 lakh a self-guarantee or a guarantor holding a rent receipt or related document is accepted; above Rs 1 lakh the guarantor must be a government, semi-government, bank or autonomous body employee with at least five years of service left, an income tax payee, an Anganwadi worker, a registered madrasa teacher, or a permanent teacher or mutawalli of a registered waqf with immovable property for equitable mortgage.
Are any charges deducted before the money is paid?
Yes, a processing charge of 0.5 per cent of the sanctioned amount is deducted before the RTGS payment, according to the BSMFC scheme document. No other fee is payable, and no agent may charge you for an application.
What happens if instalments are not paid on time?
Failure to pay the instalments on time leads to compounded interest being recovered at the end of the financial year, as stated in the corporation's scheme presentation. Timely repayment, by contrast, earns the 0.5 per cent interest rebate.
What is the BSMFC helpline number?
The Bihar State Minorities Financial Corporation publishes 0612-2204975 and the toll-free number 1800-345-6123 on its website, with the email minocorpatna@gmail.com. The head office is at 34, Hardinge Road, Patna 800001.
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