Chief Minister’s Micro Finance Initiative
Chief Minister’s Micro Finance Initiative (CMMFI)
The Chief Minister’s Micro Finance Initiative, executed by the Government of Nagaland, is a progressive scheme designed to enhance credit access for individuals engaged in farming, entrepreneurship, Self-Help Groups (SHGs), and Farmer Producer Organizations (FPOs). By focusing on financial inclusion, this initiative aims to boost economic activities across the state.
Overview of the Initiative
The “Chief Minister’s Micro Finance Initiative (CMMFI)” was introduced by Nagaland’s Department of Finance to facilitate easier access to credit for various economic pursuits. The scheme encompasses several key components:
- Provision of interest subvention or subsidy on credit provided by banks to new borrowers within the categories of SHGs, FPOs, and individuals engaged in specified activities.
- Additional interest subvention beyond existing central government schemes to make loans more appealing and affordable.
- Collateral-free credit access for entrepreneurs aiming to establish Micro and Small Enterprises.
Objectives of the Scheme
- Enhancing farmers’ income by increasing investment in quality inputs and technologies.
- Encouraging investment in agriculture, allied sectors, and small enterprises.
- Promoting credit discipline and motivating the banking sector to support agriculture and small enterprises in Nagaland.
- Improving agricultural marketing networks and infrastructural support.
- Encouraging private entrepreneurship.
- Providing collateral-free credit access to aspiring entrepreneurs.
Implementing Agencies
The scheme is executed through various agencies at both state and district levels:
- State Level: The Finance Department acts as the nodal agency, supported by the Departments of Agriculture, Horticulture, Veterinary and Animal Husbandry, Fisheries, Industries & Commerce, Nagaland State Rural Livelihood Mission, and the Investment & Development Authority of Nagaland.
- District Level: The District Level Implementation cum Monitoring Committee (DLIMC), led by the Deputy Commissioner, along with participating banks.
Key Features of the Scheme
This initiative is a bank credit-linked subsidy program implemented efficiently with the collaboration of various stakeholders, including government entities, banks, farmers, and entrepreneurs. Notable features include:
- All banks, including Nagaland Cooperative Banks, are eligible and encouraged to participate.
- A district-wise allocation of funds will be established by a State-Level Committee chaired by the Chief Secretary to ensure equitable project distribution.
- Projects will receive equal emphasis, prioritizing bankability over specific trades or activities.
- Monitoring of borrowers will occur at the district level through an Implementation Committee helmed by the Deputy Commissioner, with support from various departments.
- Applications will be reviewed by the respective Bank Branch, with technical assistance from the Nodal Department for loans exceeding ₹10 lakhs.
- Approved loans and subsidies will be fully disbursed by banks, with subsidies provided on a back-ended basis.
Funding Pattern and Subsidy Support
Financial assistance will be structured as follows:
| Particulars | Share in Project Cost |
|---|---|
| Beneficiary | Minimum 10% |
| Bank Finance | Maximum 60% |
| Back-ended Subsidy from Government of Nagaland | Fixed at 30% |
Moreover, the State Government will offer an additional interest subvention of 4% for new KCC loans and credit linkages to NSRLM SHGs, supplementing the 3% provided by the Government of India. Loans sanctioned under CMMFI will not be classified as KCC for interest subvention purposes due to an existing 6-month moratorium.
Eligibility Criteria
Eligible beneficiaries under the scheme include:
- Individual farmers and entrepreneurs looking to invest in agriculture-related activities or other ventures.
- Applicants must not be defaulters to any bank.
- Government employees are ineligible.
- Applicants must possess adequate land for land-based activities, either in their name or on a lease with a remaining period not less than the loan tenure.
- Experience or training in relevant activities is generally required.
Application Process
To apply for the Chief Minister’s Micro Finance Initiative, follow these steps:
- Eligible applicants should apply online through the Nagaland Credit Portal.
- On the homepage, click the ‘Register’ button, select the beneficiary type, enter the legal name, and set a password.
- Upon successful registration, log in using the registered email or mobile number along with the password.
- Complete the application form, upload all required documents, and submit the form.
Conclusion
The Chief Minister’s Micro Finance Initiative serves as a vital framework for promoting economic growth in Nagaland by enhancing credit accessibility for farmers, entrepreneurs, and self-help groups. With structured support and a clear application process, this scheme aims to foster sustainable livelihoods and encourage financial discipline among beneficiaries.
Eligibility Criteria
Eligible Beneficiaries
A. Individual Farmers and Entrepreneurs: Individuals who are keen to invest in Agri-allied activities, Entrepreneurs, and other activities for a better livelihood would be assisted as per the norms of the Scheme.
Eligibility Criteria
They should not be defaulters to any bank.
They should not be serving Government Employees.
They should have sufficient land for land-based activity in the name of the borrower or on lease with a remaining period of the lease agreement not less than the tenure of the loan. In the case of non-cadastral areas, a document issued by the concerned Village Council and countersigned by the area administrative officer certifying the land-holding shall be sufficient for the purpose.
They should generally have adequate experience or training in respect of the activity for which they seek assistance.
B. Self Help Groups (SHGs): SHGs have been a key element of credit extension to the poor and small entrepreneurs. They undertake activities in a group mode which benefit the community as well as provide meaningful livelihood opportunities to the members. SHGs have been supported under various programs being implemented in the State. The Government of Nagaland endeavors to further support the SHGs through this scheme to expand the scope of economic activities that can supplement the needs, especially of the rural household.
Eligibility Criteria
All SHGs (including non-NSRLM SHGs) fulfilling the Panchasutra concept i.e., holding regular meetings; regular savings; regular inter-loaning; timely repayment; and up-to-date books of accounts shall be considered for assistance under the Scheme.
SHGs would be financed, primarily, by the bank where they have their Bank Account.
SHGs shall be graded on the basis of the “Panchsutra” concept.
The group members should have sufficient land, either self-owned or on lease, to carry out land-based activities.
C. Farmer Producer Organizations (FPOs): Farmer Producer Organizations are Farmers’ Collectives with characteristics of legal personality and limited liability similar to a company, can attract investments, modern technology, catalyze aggregating and marketing of bulk produce to fetch better remuneration and in turn lead to improved means of production. Although very few in number at present, in the state, they present huge opportunities and have been considered as eligible entities under the scheme.
Eligibility Criteria
The FPO should have been registered and should have at least three years of Audited Balance Sheet.
Board members of FPOs and all members should be non-defaulters to any bank/financial institutions.
The FPO should not be in losses.
The FPO should have at least 100 shareholders and a minimum paid-up capital of Rs 1,00,000.
The activity should be relevant to the prime activity of the FPO.
The maximum borrowing of the FPO should be restricted to 2/3rd of their paid-up share capital or as per the borrowing power of their bye-laws.
At least 80% members should be participating in and benefitted by the FPO either through supply of input or aggregation of produce and marketing.
Eligible Lending Institutions
As the subsidy is credit-linked, the projects will be eligible for subsidy only if financed by either a commercial bank (Public & Private Sector Banks), the Nagaland Rural Bank, or the Nagaland State Cooperative Bank.
Benefits
Funding Pattern and Subsidy Support
Financing through Banks
• All banks in the State of Nagaland will be eligible as lending institutions in the Scheme.
• All participating banks must develop product codes for the Scheme.
• The quantum of loan, subsidy, and borrower's margin will be as follows:
Sl. No.ParticularsShare in Project Cost
1BeneficiaryMinimum 10%
2Bank FinanceMaximum 60%
3Back-ended Subsidy from Government of NagalandFixed at 30%
In addition to the above, the State Government will provide interest subvention of an additional 4% for fresh KCC loans and credit linkage to NSRLM SHGs, over and above the 3% provided by GOI. Loans approved under CMMFI shall not be treated as KCC for the purpose of interest subvention as a 6-month moratorium period is already there.
In case of KCC loan and agriculture infrastructure loans, proposed for subsidy under CMMFI, for loans above 1.6 Lakh, respective VDBs may undertake to provide Credit Guarantee Fund from their fixed deposits. In case of NSRLM SHGs, respective Cluster/Block Level Federations may undertake to provide Credit Guarantee Fund from their Community Investment Support Fund. Bank loan for KCC will be determined as per the scale of finance published by NABARD. Bank loan to NSRLM SHGs will be determined as per NRLM/NSRLM guidelines depending on the corpus fund and savings of the SHGs. The applicant may furnish a personal guarantee or guarantee of a salaried employee in lieu of VDB guarantee.
In case of Micro and Small Enterprise loans, loans are mandated to be collateral-free up to 10 Lakh for individual borrowers. Beneficiary seeking loans up to 10 Lakh and above will have the option to seek collateral-free loan through the CGTMSE Scheme, wherein the Government of Nagaland shall pay the Annual Guarantee Fee of 0.37% on behalf of the beneficiary.
The commitment from the State Government shall be in the form of:
Additional Interest Subvention of 4% on KCC loans.
Subsidy of 30% on Term Loans for Agricultural-Allied activities, Entrepreneurship, and other activities.
Coverage of Annual Guarantee Fee of 0.37% for small and medium enterprise loans under the subsidy category or loans up to 50 lakhs for non-subsidy category.
Payment of Interest during the Moratorium. The moratorium shall be uniform across all projects for a period of 6 months.
The tenure of the loan will be fixed for a maximum of 5 years, extendable to 7 years or more at the discretion of the banks.
Two years lock-in period before foreclosure of the loan to prevent the loan from being claimed only for the purpose of the subsidy component rather than actual entrepreneurship/livelihood projects.
All livestock (cows, sheep, chickens, pigs, etc.) loans shall be mandatory to obtain livestock insurance, and this component shall be part of the DPR and loan approval process, wherever insurance coverage is available.
Application Process
Apply OnlineStep 1: Eligible applicants must apply online through the Credit Portal of Nagaland.
Step 2: On the homepage, click on the ‘Register’ button. Select the type of beneficiary, enter the legal name, and set a password. Register here
Step 3: After successful registration, log in using the registered email or mobile number along with the password. Login here
Step 4: Fill out the application form, upload all mandatory documents, and submit the form.
References & Official Links
Scheme Details
| Full Name | Chief Minister’s Micro Finance Initiative |
| Short Title | CMMFI |
| Level | State |
| Scheme For | Infra |
| Categories | Banking,Financial Services and Insurance |
| States | Nagaland |
| Gender | All |
| Age Range | 10 — 60 years |
| Area | Rural |
| Source | www.myscheme.gov.in ↗ |
Deepika Raikwar
Deepika Raikwar is an Education Analyst and scholarship researcher who focuses on public welfare and merit-based scholarships. She simplifies complex eligibility rules, deadlines, and application processes to help common people access reliable funding opportunities worldwide.
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