Loans in Bihar: Borrowing Solutions in the State

Bihar, a flourishing state located in the north of India, is an industrially booming centre that is experiencing rapid economic development. This progress has sparked a dynamic demand for loans across various segments of its population. As industries flourish and infrastructure expands, loans in Bihar are fuelling entrepreneurial ventures, innovation, and modernisation. 

Agriculture, a pillar of Bihar’s economy, benefits from loans that enhance farming techniques and productivity. Small businesses also thrive on loans that enable expansion and job creation. In this atmosphere of progress, loans play a pivotal role in propelling Bihar’s transformation, making dreams attainable and contributing to the state’s overall growth.

Let us see have a deep dive in the borrowing landscape in Bihar and which financing options re available in the Land of Buddha:

Types of Loans in Bihar

Loan Type Interest Rate Eligibility Criteria
Personal Loan

10% - 20%

Minimum age of 21 years, minimum annual income of Rs. 3 lakhs, and a good credit score.

Home Loan

6% - 9%

Minimum age of 25 years, minimum annual income of Rs. 5 lakhs, and a good credit score.

Education Loan

7% - 10%

Minimum age of 18 years, minimum annual income of Rs. 2 lakhs, and a good credit score.

Business Loan
10% - 15%
Minimum age of 21 years, minimum annual income of Rs. 3 lakhs, and a good credit score.
Vehicle Loan

10% - 15%

Minimum age of 21 years, minimum annual income of Rs. 2 lakhs, and a good credit score.

Gold Loan
12% - 18%
Minimum age of 18 years and a minimum gold value of Rs. 1 lakh.
Agricultural Loan
6% - 9%
Minimum age of 21 years, minimum annual income of Rs. 2 lakhs, and a good credit score.
Microfinance Loan
18% - 36%
Minimum age of 18 years and a minimum monthly income of Rs. 3000.
Mortgage Loans
10% - 15%
Minimum age of 21 years and a minimum property value of Rs. 10 lakhs.

Different Lenders Offering Loans in Bihar

In Bihar, as in other parts of India, you can find various types of lenders offering different financial products and services. Here are some of the different types of lenders you might come across:


Nationalised banks, private banks, and cooperative banks are common in Bihar. There are a wide range of banks providing effective loan services in Bihar, including big banks like HDFC Bank and ICICI Bank and local banks like Bihar State Co-operative Bank.

Non-Banking Financial Companies (NBFCs)

These are financial institutions that provide services similar to banks, such as loans and financial products, but they do not hold a banking license. Various NBFCs like Tata Capital and Shriram finance offer varied loan options in Bihar.

Microfinance Institutions

Bihar is one of the biggest markets for microfinance loans in India. These institutions, like Asirvad Microfinance and  Akhand Jyoti Microfinance, provide small loans, up to Rs. 5-10 lakhs, usually to people who lack access to traditional banking services. They focus on financial inclusion and providing credit to low-income individuals.

Regional Rural Banks (RRBs)

The RRBs are cooperative banks that operate in rural areas of India, including in and around Bihar. They are jointly owned by the central government, the state government, and a sponsor bank. One of largest RRBs in Bihar for loans is Bihari Gramin Bank, offering a wide range of loans at affordable interest rates.  

Credit Cooperatives

These are cooperative societies that provide financial services to their members. They offer several types of loans like agricultural loans, term loans, and more. The Bihar Co-operative Credit Society and Sahara Credit Cooperative Society are a few examples.

Online Lenders

With the advent of technology, online lenders have become increasingly popular in Bihar. These lenders provide loans through digital platforms, often with quicker processing times. Finnable is an instant online loan provider that offers loans of up to Rs. 10 lakhs throughout Bihar and rest of India.

Government Financial Institutions

Bihar, like other states in India, has specialised government financial institutions that offer loans and financial support for various sectors, such as agriculture, small businesses, and more. These institutions offer a large array of services and specialised loans in sectors like small business (SIDBI) and housing (NABARD).

Small Finance Banks

These banks are focused on providing financial services to underserved and unbanked segments of the population, including micro and small businesses, and low-income individuals. Some popular small finance banks offering loans in Bihar include AU Small Finance Bank and Suryoday Bank.

Retail Finance Companies

These companies offer loans for consumer goods, such as electronics and appliances, with easy repayment options. These include institutions like Capital India and Orange Retail Finance.

Government Loan Schemes: 

The government of Bihar offers several loan schemes in Bihar to support different segments of society, such as women, minorities, and economically disadvantaged individuals. Generally, government scheme loans have lower interest rates and more relaxed eligibility criteria than commercial loans. Stand-up India loan scheme and MUDRA Yojana are the popular options for Biharis looking for financing their small businesses. 

Note that many lending institutions in India can fall under multiple of the aforementioned categories due to the overlapping nature of their services. When choosing a lender, consider factors like interest rates, repayment terms, customer service, and the lender’s reputation. It’s important to read and understand the terms and conditions of any financial product before committing to it.

How to Apply for a Personal Loan in Bihar with Finnable?

Personal loans are a great flexible way to finance your needs. Whether you want to raise capital for a business venture or want to finance your home renovation, you can use a personal loan from Finnable to fund any of your dreams, no restrictions applicable. 

If you’re looking for a personal loan in Bihar, Finnable is a great option. Finnable is a digital lender that offers personal loans up to Rs. 10 lakhs.

To apply for a personal loan with Finnable, you can follow these simple steps:

  1. Go to the Finnable website or download the Finnable Instant Personal Loan app.
  2. Create an account and provide your basic details.
  3. Check the eligibility for Finnable’s personal loans.
  4. If you qualify, upload the required documents, such as your PAN card, Aadhaar card, salary slips, and bank statement.
  5. Select the amount and tenure of your loan.
  6. Submit your application and wait for approval.
  7. Finnable offers a quick and easy application process, with approval in as little as 5 minutes. Once your loan is approved, the funds will be disbursed to your bank account within 30 minutes.

Here are some of the benefits of applying for a personal loan with Finnable:

  • Quick and easy application process
  • Competitive interest rates
  • Flexible repayment terms
  • No collateral required
  • Online processing
  • 100% digital process

If you are looking for a personal loan in Bihar, Finnable is a great option. With our quick and easy application process, competitive interest rates, and flexible repayment terms, Finnable can help you get the money you need, when you need it.

Amit Arora


I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
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