Patna: The Bihar government has announced plans to extend bank loans of up to Rs 10 lakh each to 50,000 women’s self-help groups during the 2026–27 financial year, in a move aimed at strengthening rural livelihoods and expanding women-led enterprises.
The initiative targets groups operating under the state’s “Jeevika” programme, a flagship scheme associated with former chief minister Nitish Kumar. Officials say the decision reflects the strong repayment record and financial discipline demonstrated by these collectives in recent years.
According to government data, a total of Rs 16,000 crore in loans is expected to be disbursed to Jeevika groups this financial year, up from approximately Rs 14,000 crore in 2025–26. Authorities estimate that around 1.1 million women are currently engaged in these groups across rural Bihar, with each group typically comprising about 12 members.
If fully implemented, the latest round of funding could translate to an average benefit of roughly Rs 1 lakh per member in the selected groups. Loan allocations are determined based on a group’s borrowing history and performance, with existing categories ranging from Rs 1.5 lakh to Rs 10 lakh.
Officials said the state aims to scale up the programme further, with a longer-term goal of enabling up to 5,00,000 groups to access loans of Rs 10 lakh each over the next two to three years. To support this expansion, groups will be gradually strengthened through training, financial inclusion measures and capacity-building initiatives.
Women participating in the scheme—often referred to locally as “Jeevika Didis”—have used the funds to establish or grow small businesses spanning sectors such as agriculture, animal husbandry, retail shops, tea stalls, fish farming and beauty services. The programme also allows members to access smaller loans within their groups for household needs.
Bank officials cite a repayment rate of around 99% among these groups, which has helped build confidence in extending further credit. Analysts note that such high repayment levels are uncommon in comparable lending programmes and have been central to the scheme’s expansion.
The Jeevika programme has long been positioned as a cornerstone of Bihar’s rural development strategy, focusing on organising women into self-help groups, providing skills training and linking them to income-generating opportunities. The latest loan push is expected to reinforce those efforts, particularly in districts where formal employment opportunities remain limited.
The announcement comes as the state continues to prioritise women’s economic participation through targeted financial schemes and livelihood support initiatives.
