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The Bihar Laghu Udyami Yojana (LUG) is a major initiative of the Bihar government aimed at providing financial assistance to poor families in the state to start their own small businesses. It provides up to ₹2 lakh per beneficiary, interest-free, and includes significant subsidies, which promote self-employment and reduce unemployment.
Objective
To provide financial assistance to the poor, youth, women and marginalized groups of Bihar to set up their own business.
Benefits / Subsidy
Benefit Type
Subsidy Linked Loan
Coverage
Up to 2 Lakhs Subsidy
A total amount of ₹2 lakh per beneficiary is provided under the scheme .
Most of this amount is in the form of government subsidies.
The remaining amount is to be paid in easy installments without any interest.
Eligibility
- The applicant should be a permanent resident of Bihar.
- Benefit to one of the family members (one of the spouses).
- The monthly income of the family should be less than ₹6,000.
- The age limit should be between 18 to 50 years.
Documents Required
Residence Certificate,
Income Certificate,
Aadhar Card,
Bank Passbook,
Caste Certificate (if applicable), and
PAN Card.