Chief Minister's Micro Finance Initiative

The “Chief Minister's Micro Finance Initiative (CMMFI)” was launched by the Department of Finance, Government of Nagaland, aims to promote access to credit for economic activities undertaken by individual farmers, entrepreneurs, Self-Help Groups (SHGs), and Farmer Producer Organizations (FPOs). The scheme will have the following components: - Provide for interest subvention or subsidy for credit extended by banks to new borrowers under the category of Self-Help Groups, Farmer Producer Organizations, and Individuals for identified activities. - Provide for additional interest subvention, over and above what is already provided in existing central government schemes, to make credit more attractive and affordable. - Provide collateral-free credit access to Entrepreneurs for Micro and Small Enterprises. Beneficiaries seeking non-subsidy linked loans and fresh beneficiaries seeking subsidy-linked loans. Objectives of the Scheme: - To increase farmers' income by increasing investment in the sector, quality inputs, and technology. - To promote investment in Agri & Allied and in the small enterprise sectors. - To promote credit discipline and encourage the Banking Sector to support Agricultural and small enterprise sectors in the State. - To improve the Agri-marketing network and infrastructure in the State. - To promote private enterprise. - To provide collateral-free credit access to aspiring entrepreneurs. Scheme Implementing Agencies: 1. At the State HQ Level • Nodal Department shall be the Finance Department. • Department of Agriculture, Horticulture, Veterinary and Animal Husbandry, Fisheries, Industries & Commerce, Nagaland State Rural Livelihood Mission, and Investment & Development Authority of Nagaland shall provide the necessary technical support. 2. At the District Level • District Level Implementation cum Monitoring Committee (DLIMC) headed by the Deputy Commissioner. • Participating Banks. Salient Features of the Scheme: The proposed Scheme is a bank credit-linked subsidy scheme to be implemented in a time-bound manner with participation from various stakeholders - government, bankers, farmers, and entrepreneurs. Broad features of the scheme are: - All banks, including the Nagaland Cooperative Banks, will be eligible and shall be encouraged to participate in the Scheme. - There will be a district-wise allocation, which will be decided by a State Level Committee headed by the Chief Secretary. This will help avoid skewed distribution of projects regionally. - Equal emphasis will be given to all projects, with focus on bankability rather than a particular trade/activity. - The borrowers under the scheme will be monitored at the district level by an Implementation Committee headed by the Deputy Commissioner, with members drawn from the various departments. Extension of support to the beneficiaries will be provided by the respective departments. The scheme will involve active participation of the banks and the district machinery to transfer the benefits of the subsidy assistance while creating sustainable livelihoods. - The application will be scrutinized by the concerned Bank Branch, and where required, the technical inputs from Nodal Department may be sought for finalizing the beneficiaries seeking capital-subsidy, that too only in cases where loan amount is above 10 Lakhs. For all other categories of beneficiaries, banks shall do the due diligence. - The banks shall disburse the entire approved loan and subsidy. The subsidy shall be back-ended and disbursed through the banks. The controlling office or the nodal bank of the financing bank shall submit the claims immediately after release of the first installment of the loan. - The details of the eligibility criteria, pattern of assistance, the procedures to be adopted, and the framework of guidelines for implementing the scheme shall be as laid down in this scheme.