The Chief Minister’s Micro Finance Initiative was jointly launched by the Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, and the Chief Minister of Nagaland, Neiphiu Rio, at the Capital Cultural Hall in Kohima on 23rd August 2022. The scheme is designed to boost farmers’ incomes by increasing investments in agriculture and allied sectors, improving agri-marketing networks and infrastructure, promoting credit discipline, and encouraging private enterprise. It aims to make credit more affordable and accessible to hardworking farmers and young entrepreneurs. The initiative provides either a subsidy or an interest subsidy for specified activities in agriculture and associated sectors, such as processing units, handicrafts, and small-scale manufacturing. Additional interest subvention is provided on top of existing Central Government schemes.
Benefits
- Increase in farmers’ income through enhanced investment in quality inputs and technology.
- Promotion of investment in agriculture, allied sectors, and small enterprises.
- Strengthening of credit discipline and support from the banking sector for agriculture and small enterprise sectors.
- Improvement of the state’s agri-marketing network and infrastructure.
- Encouragement of private enterprise across the state.
Eligibility
Individual Farmers:
- Must not be defaulters with any bank.
- Must possess sufficient land for land-based activities in the name of the borrower or on a lease with the remaining tenure not less than the loan period. For non-cadastral areas, a document issued by the concerned Village Council and countersigned by the area administrative officer certifying the land-holding will suffice.
- Should generally have adequate experience or training in the relevant activity.
Self-Help Groups (SHGs):
- All SHGs, including non-NSRLM groups, that fulfill the Panchasutra concept (regular meetings, regular savings, regular inter-loaning, timely repayment, and up-to-date books of accounts) are eligible.
- SHGs are primarily financed by the bank with which they hold their bank account.
- SHGs shall be graded on the Panchasutra concept.
- Group members should have sufficient land, either self-owned or leased, for land-based activities.
Farmer Producer Organizations (FPOs):
- Must be registered and possess at least three years of audited balance sheets.
- Board members and all members should be non-defaulters to any bank or financial institution.
- Should not be at losses.
- Must have at least 100 shareholders and a minimum paid-up capital of Rs 1,00,000.
- The proposed activity should be relevant to the primary activity of the FPO.
- Maximum borrowing is restricted to two-thirds of their paid-up share capital or as per the borrowing power of their bye-laws.
- At least 80% of members should participate and benefit from the FPO through the supply of inputs or aggregation and marketing of produce.
Application Process
Online
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Submission:
Interested applicants must apply to the District Level Implementation cum Monitoring Committee (DLIMC) headed by the Deputy Commissioner of the concerned District. -
Downloading Forms:
The application form and the project proposal format for individual farmers, SHGs, or FPOs can be downloaded from the designated link provided on the official portal. -
Screening:
Applications received will be scrutinized and shortlisted by a Screening Committee comprised of subject matter specialists from various line departments, including banks. -
Technical Support:
Necessary technical support and guidance will be provided by the Departments of Agriculture, Horticulture, Veterinary and Animal Husbandry, Fisheries, Industries & Commerce, and the Nagaland State Rural Livelihood Mission.
Documents Required
- An attested copy of the ST Certificate.
- A copy of the land ownership document.
- Evidence of education qualification, training, or relevant experience.
- Details regarding the water source.
- Total water area.
- Total farm area.
- Information on the number of ponds, including their sizes in meters or feet.
Frequently Asked Questions
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What is the aim of this scheme?
The scheme aims to enhance farmers’ income by promoting investment in agriculture and allied sectors, improving infrastructure, and supporting private enterprise. -
What is the main motive of this scheme?
Its main motive is to make credit more accessible and affordable to farmers and young entrepreneurs, thereby boosting agricultural productivity and economic growth. -
What other benefits does the scheme offer?
Beyond financial assistance, it promotes credit discipline, strengthens agri-marketing networks, and supports the growth of private enterprise in the state. -
How does this scheme benefit the state?
By increasing agricultural investments and income, the scheme contributes to rural development, improves infrastructure, and stimulates private sector growth. -
Why is this scheme useful for private enterprise?
It encourages private enterprise by providing financial support and making credit cheaper, which in turn promotes small-scale manufacturing and allied activities. -
Who can apply for this scheme?
Eligible applicants include individual farmers, Self-Help Groups, Farmer Producer Organizations/companies, and cooperative societies. -
What are the eligible schemes under this initiative?
Eligible schemes include projects like the construction of circular eco-hatcheries, rejuvenation of animal husbandry through credit linkage, procurement of transport vehicles for agricultural products, integrated farming systems, horticulture crop loan schemes, and microfinance schemes for micro-enterprises. -
Who are the eligible farmers?
Farmers keen to invest in agri-allied and related activities for improved livelihood are eligible, provided they meet the criteria regarding land possession and experience. -
Is prior experience or training required for farmers?
Yes, individual farmers should generally have adequate experience or training in the activity for which they seek assistance. -
What is the process to apply for this scheme?
Applications must be submitted online to the District Level Implementation cum Monitoring Committee (DLIMC) along with the necessary documents and project proposal. -
How is the application process managed?
Applications are screened by a committee of subject matter experts from various departments, and technical support is provided as needed.