Sarkari Yojana
Chief Minister’s Micro Finance Initiative
About Chief Minister’s Micro Finance Initiative
Launched by the Department of Finance, Government of Nagaland, the “Chief Minister’s Micro Finance Initiative (CMMFI)” seeks to widen access to credit for income-generating work carried out by individual farmers, entrepreneurs, Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs). It is made up of these components:
- Interest subvention or subsidy on bank credit given to new borrowers, namely Self-Help Groups, Farmer Producer Organizations and Individuals, for identified activities.
- Extra interest subvention, on top of what existing central government schemes already give, so that credit becomes more appealing and affordable.
- Credit without collateral for Entrepreneurs running Micro and Small Enterprises, covering both beneficiaries wanting loans not linked to subsidy and new beneficiaries wanting subsidy-linked loans.
Objectives of the Scheme:
- Raising farmers’ incomes through greater investment in the sector, better inputs and technology.
- Encouraging investment in Agri & Allied activities and in small enterprises.
- Building credit discipline and motivating the Banking Sector to back the State’s agriculture and small enterprise sectors.
- Strengthening the State’s agri-marketing network and infrastructure.
- Fostering private enterprise.
- Giving aspiring entrepreneurs access to credit without collateral.
Scheme Implementing Agencies: 1. At the State HQ Level • The Finance Department is the Nodal Department. • Technical support comes from the Departments of Agriculture, Horticulture, Veterinary and Animal Husbandry, Fisheries, Industries & Commerce, the Nagaland State Rural Livelihood Mission, and the Investment & Development Authority of Nagaland. 2. At the District Level • The District Level Implementation cum Monitoring Committee (DLIMC), chaired by the Deputy Commissioner. • The Participating Banks. Salient Features of the Scheme: This is a bank credit-linked subsidy scheme to be carried out within set timelines with the involvement of several stakeholders, namely the government, bankers, farmers and entrepreneurs. Its main features are:
- Every bank, the Nagaland Cooperative Banks included, can take part in the Scheme and will be encouraged to do so.
- Allocations will be made district by district, as fixed by a State Level Committee chaired by the Chief Secretary, to prevent projects from being unevenly spread across regions.
- All projects will be treated alike, with the focus on whether they are bankable rather than on any specific trade or activity.
- At the district level, borrowers will be tracked by an Implementation Committee chaired by the Deputy Commissioner with members from various departments, and the respective departments will provide extension support to beneficiaries. Banks and the district administration will work actively together to pass on the subsidy while building sustainable livelihoods.
- The relevant Bank Branch will examine each application; technical inputs from the Nodal Department may be requested to finalise capital-subsidy beneficiaries, but only where the loan exceeds 10 Lakhs. For every other category, banks will carry out the due diligence themselves.
- Banks will release the full sanctioned loan and subsidy. The subsidy is back-ended and routed through the banks, and the financing bank’s controlling office or nodal bank must file claims as soon as the first loan installment is released.
- Eligibility conditions, the assistance pattern, procedures and the guideline framework for running the scheme are as set out in this scheme.
Scheme Overview
State Government
Finance Department
Business Entity
23 Aug 2022
Scheme Details
Eligibility Requirements
To qualify for Chief Minister's Micro Finance Initiative, applicants must satisfy the following conditions:
Eligible Beneficiaries A. Individual Farmers and Entrepreneurs: People wishing to invest in Agri-allied activities, Entrepreneurs, and those taking up other activities to improve their livelihood will be helped in line with the Scheme's norms. Eligibility Criteria
They must not be in default with any…
They must not be in default with any bank.
They must not be Government Employees in service
They must not be Government Employees in service.
For land-based activities, they must have enough land…
For land-based activities, they must have enough land in the borrower's own name, or on a lease whose remaining term is at least as long as the loan tenure. In non-cadastral areas, a land-holding certificate from the Village Council, countersigned by the area administrative officer, will suffice.
They should ordinarily have sufficient experience or training…
They should ordinarily have sufficient experience or training in the activity for which they want support. B. Self Help Groups (SHGs): SHGs have been central to extending credit to poor people and small entrepreneurs. Working as a group, they carry out activities that help the wider community and give members meaningful livelihoods. SHGs already receive support under several programmes in the State, and through this scheme the Government of Nagaland aims to back them further so that they can broaden the economic activities that meet the needs of rural households in particular. Eligibility Criteria
Every SHG (non-NSRLM SHGs included) that follows the…
Every SHG (non-NSRLM SHGs included) that follows the Panchasutra concept, meaning regular meetings, regular savings, regular inter-loaning, timely repayment and updated books of accounts, will be considered for assistance.
SHGs will be financed mainly by the bank…
SHGs will be financed mainly by the bank that holds their Bank Account.
SHGs will be graded according to the “Panchsutra”…
SHGs will be graded according to the “Panchsutra” concept.
Members must have enough land, owned or leased,…
Members must have enough land, owned or leased, to take up land-based activities. C. Farmer Producer Organizations (FPOs): Farmer Producer Organizations are farmers' collectives that, like a company, have legal personality and limited liability. They can draw investment and modern technology, and help pool and market produce in bulk to earn better prices, which in turn improves means of production. Though few exist in the state so far, they offer great potential and are treated as eligible entities under the scheme. Eligibility Criteria
The FPO must be registered and must have…
The FPO must be registered and must have Audited Balance Sheets for at least three years.
The FPO's board members and all its members…
The FPO's board members and all its members must not be defaulters with any bank/financial institution.
The FPO must not be running at a…
The FPO must not be running at a loss.
The FPO must have a minimum of 100…
The FPO must have a minimum of 100 shareholders and paid-up capital of at least Rs 1,00,000.
The proposed activity must relate to the FPO's…
The proposed activity must relate to the FPO's main line of work.
The FPO's borrowing is capped at 2/3rd of…
The FPO's borrowing is capped at 2/3rd of its paid-up share capital, or at the borrowing limit set by its bye-laws.
No less than 80% of members must take…
No less than 80% of members must take part in and gain from the FPO, whether through input supply or through produce aggregation and marketing. Eligible Lending Institutions Because the subsidy is linked to credit, a project qualifies only if it is financed by a commercial bank (Public & Private Sector Banks), the Nagaland Rural Bank or the Nagaland State Cooperative Bank.
Benefits Provided
Chief Minister's Micro Finance Initiative provides the following benefits to eligible applicants:
Funding Pattern and Subsidy Support Financing through Banks
Every bank in the State of Nagaland can…
Every bank in the State of Nagaland can act as a lending institution under the Scheme.
Each participating bank has to create product codes…
Each participating bank has to create product codes for the Scheme.
The loan, subsidy and borrower's margin are shared…
The loan, subsidy and borrower's margin are shared as shown below (serial number, particulars, share in project cost):
1. Beneficiary:
at least 10% (Minimum 10%) of the project cost.
2. Bank Finance:
up to 60% (Maximum 60%) of the project cost.
3. Back-ended Subsidy from Government of Nagaland:
set at 30% (Fixed at 30%) of the project cost.
Besides this, the State Government gives an extra…
Besides this, the State Government gives an extra 4% interest subvention on fresh KCC loans and on credit linkage for NSRLM SHGs, on top of the 3% given by GOI. Loans sanctioned under CMMFI will not count as KCC for interest subvention, since they already carry a 6-month moratorium.
For KCC loans and agriculture infrastructure loans put…
For KCC loans and agriculture infrastructure loans put up for subsidy under CMMFI, where the loan exceeds 1.6 Lakh, the VDBs concerned may provide a Credit Guarantee Fund out of their fixed deposits. For NSRLM SHGs, the relevant Cluster/Block Level Federations may provide a Credit Guarantee Fund out of their Community Investment Support Fund. KCC loan amounts follow the scale of finance published by NABARD, while loans to NSRLM SHGs follow NRLM/NSRLM guidelines based on the SHG's corpus fund and savings. Instead of a VDB guarantee, the applicant may offer a personal guarantee or the guarantee of a salaried employee.
Micro and Small Enterprise loans must be free…
Micro and Small Enterprise loans must be free of collateral up to 10 Lakh for individual borrowers. Beneficiaries seeking loans of 10 Lakh and above may opt for a collateral-free loan through the CGTMSE Scheme, with the Government of Nagaland paying the 0.37% Annual Guarantee Fee on their behalf. The commitment from the State Government shall be in the form of:
An extra Interest Subvention of 4% on KCC…
An extra Interest Subvention of 4% on KCC loans.
A 30% subsidy on Term Loans for Agricultural-Allied…
A 30% subsidy on Term Loans for Agricultural-Allied activities, Entrepreneurship and other activities.
Payment of the 0.37% Annual Guarantee Fee for…
Payment of the 0.37% Annual Guarantee Fee for small and medium enterprise loans in the subsidy category, or for loans of up to 50 lakhs in the non-subsidy category.
Payment of interest for the moratorium period, which…
Payment of interest for the moratorium period, which is a uniform 6 months for every project.
A loan tenure of at most 5 years,…
A loan tenure of at most 5 years, which banks may at their discretion stretch to 7 years or beyond.
A two-year lock-in before the loan can be…
A two-year lock-in before the loan can be foreclosed, so that loans are not taken merely to capture the subsidy instead of for genuine entrepreneurship/livelihood projects.
Livestock insurance is compulsory for every livestock loan…
Livestock insurance is compulsory for every livestock loan (cows, sheep, chickens, pigs, etc.) wherever such cover exists, and it must form part of the DPR and loan approval process.
Documents Required
Applicants should keep the following documents ready before starting the application:
A Detailed Project Report for the proposed activity
A Detailed Project Report for the proposed activity
A document proving the applicant's address
A document proving the applicant's address
A valid Aadhaar identity card
A valid Aadhaar identity card
PAN Card (this can be obtained after applying…
PAN Card (this can be obtained after applying and handed in later)
Three passport-size photographs (SHGs & FPOs must give…
Three passport-size photographs (SHGs & FPOs must give 3 passport-size photographs each of any two of these office-bearers:- 1. Treasurer 2. Chairman 3. Secretary)
Bank account particulars (if an account exists; if…
Bank account particulars (if an account exists; if not, a new one must be opened with the bank sanctioning the loan)
Udhyam Registration (needed for MSME projects, not for…
Udhyam Registration (needed for MSME projects, not for core Agri projects)
Certificate of land holding (only for Piggery Loans…
Certificate of land holding (only for Piggery Loans and other Livestock loans, except Mithun rearing)
License (For trade/business establishments)
License (For trade/business establishments):
For Urban Areas: a business trade licence where the establishment is located in an urban area.
For Rural Areas: an NOC from the village council where the business is located in a rural area
2022-08-23
How to Apply
Online Application
Applicants can apply for Chief Minister's Micro Finance Initiative through the online application process outlined below.
Applicants who qualify must submit their application online…
Applicants who qualify must submit their application online on the Credit Portal of Nagaland.
Press the ‘Register’ button on the homepage, choose…
Press the ‘Register’ button on the homepage, choose the beneficiary type, type in the legal name and create a password. Create your account here
Once registered, sign in with the email or…
Once registered, sign in with the email or mobile number you registered and your password. Sign in here
Complete the application form, upload every mandatory document…
Complete the application form, upload every mandatory document and submit it.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.