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Credit Portal

Government of Nagaland

Chief Minister's Micro Finance Initiative (CMMFI)

Nagaland is predominantly an agrarian State with around 70% of its working population engaged in agricultural activities. Difficult terrain, fragmented land-holding infrastructure, marketing bottlenecks, high migration to urban areas, and low investment are challenges faced by the sector, resulting in the State importing a large number of food products, including meat, to sustain its population. Nagaland, however, has huge potential in terms of the variety in soil and climatic conditions it offers. The added advantage with the State is that it is still organic, and there is a great demand for organic products worldwide. At the same time, high urbanization also provides an opportunity for improving productivity and providing linkages to food value chains, which in turn can provide gainful employment in the agriculture, allied, and small enterprise sectors.

Availability of affordable credit is essential for an individual to harness his or her skills to run businesses, create livelihoods, and in the case of the poor, fight poverty. There are a number of central government schemes that are being implemented in the State, in the agriculture and allied sectors, as well as aimed at small entrepreneurs, individuals, and Self-Help Groups. Despite this, the offtake of credit to others than to the government sectors has, however, not been as per expectations.

With a view to encouraging credit for carrying out economic activities, the omnibus scheme under the name and nomenclature of CM’s Micro Finance Initiative has been approved by the Government. The scheme will have the following four components:



Download CMMFI Booklet

Objectives of the Scheme:

  1. To increase farmers' income by increasing investment in the sector, quality inputs, and technology.
  2. To promote investment in Agri & Allied and in the small enterprise sectors.
  3. To promote credit discipline and encourage the Banking Sector to support Agricultural and small enterprise sectors in the State.
  4. To improve the Agri-marketing network and infrastructure in the State.
  5. To promote private enterprise.
  6. To provide collateral-free credit access to aspiring entrepreneurs.

SCHEME GUIDELINES

1. Scheme Implementing Agencies

1. At the State HQ Level

2. At the District Level

2. 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:

3. 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

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

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

4. 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.

5. Funding Pattern and Subsidy Support

1. Financing through Banks

The commitment from the State Government shall be in the form of:


CMMFI Schemes

# Project Description Total Project Cost
1 Provision Store or General Store ₹ 1300000
2 Automobile services ₹ 1500000
3 Reverse osmosis plant (1000 LPH) ₹ 1000000
4 Craft Industry: Handloom/weaving center/ carpentry/Pottery/Stone Crafting ₹ 900000
5 Hydroponic farming ₹ 1050000
6 Xerox and Printing center (excluding Press) ₹ 700000
7 Winery ₹ 1400000
8 Ambulance services ₹ 1500000
9 Software Services/Computer Training Centre ₹ 1350000
10 E-commerce, Delivery Centers, Transport Services & Transport Vehicle ₹ 1500000