“On June 29, 2025, Bihar launched a groundbreaking loan scheme to empower women farmers, offering interest-free loans up to ₹5 lakh for agri-business ventures. Aimed at boosting rural entrepreneurship, the initiative includes subsidies and training, targeting over 50,000 women. This move strengthens Bihar’s agricultural economy and promotes women’s financial independence.”
Empowering Bihar’s Women Farmers with New Agri-Business Loan Scheme
On June 29, 2025, the Bihar government unveiled a transformative loan scheme under the Mukhyamantri Mahila Udyami Yojana, specifically tailored for women farmers to foster agri-business entrepreneurship. This initiative, announced by Chief Minister Nitish Kumar, aims to provide financial support to over 50,000 women across rural and urban areas, enabling them to establish or expand agricultural ventures. The scheme offers interest-free loans of up to ₹5 lakh, with a 50% subsidy on the loan amount, disbursed in two installments based on business requirements.
The program targets women engaged in diverse agricultural activities, including dairy farming, poultry, horticulture, and value-added ventures like food processing and organic farming. To ensure accessibility, the application process has been streamlined through an online portal managed by the Bihar Industries Department, with district-level nodal officers providing guidance. Women farmers, including those in self-help groups (SHGs) and joint liability groups (JLGs), are prioritized, with a special focus on marginalized communities such as Scheduled Castes, Scheduled Tribes, and Extremely Backward Classes.
In addition to financial aid, the scheme incorporates training programs to equip women with skills in modern farming techniques, marketing, and financial management. The government has partnered with institutions like the National Bank for Agriculture and Rural Development (NABARD) and local cooperatives to facilitate credit access and technical support. A dedicated committee ensures transparency in loan approvals, addressing concerns raised in previous schemes about equitable distribution.
The initiative aligns with Bihar’s broader agricultural roadmap, which emphasizes increasing productivity and income for rural farmers. With agriculture contributing 18% to Bihar’s GDP, the state’s fertile soil and favorable climate provide a strong foundation for such ventures. The scheme also complements national programs like the Agri Infrastructure Fund, which supports post-harvest management and community farming assets.
Data from the Bihar Industries Association indicates that women-led agri-businesses have grown by 12% annually since 2020, yet financial constraints remain a barrier. The new scheme aims to bridge this gap, with an initial allocation of ₹300 crore for the fiscal year 2025-26. Officials estimate that successful implementation could increase women’s contribution to Bihar’s agricultural economy by 15% over the next five years.
Challenges remain, including awareness gaps in remote areas and the need for robust monitoring to prevent misuse of funds. Critics, including opposition leaders, have urged the government to ensure timely disbursal and address bureaucratic delays, citing past issues with similar schemes. However, the state’s commitment to women’s empowerment through this initiative has been widely praised, with experts calling it a game-changer for rural economies.
Disclaimer: This article is based on information from government announcements, official portals, and reports from credible sources like the Bihar Industries Department and NABARD. Data and projections are subject to change based on policy updates and implementation outcomes.