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Banking,Financial Services and Insurance

Chief Minister's Micro Finance Initiative

The scheme aims to promote access to credit for economic activities undertaken by individual farmers, entrepreneurs, Self-Help Groups (SHGs), and Farmer Producer Organizations (FPOs) in the state of Nagaland.

Authority

State

Region

Nagaland

Status

Verified 2026

Updated

March 2026

What you get

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 Cost1BeneficiaryMinimum 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.

Who can apply

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.; 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.; 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.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

How can one apply for scheme?

Eligible applicants can apply online through the Credit Portal of Nagaland at https://credit.nagaland.gov.in.

Who launched the CMMFI scheme?

The scheme was jointly launched by the Union Finance Minister, Nirmala Sitharaman, and the Chief Minister of Nagaland, Neiphiu Rio, on August 23, 2022.

What is the main objective of CMMFI?

The scheme aims to enhance farmers' income by promoting investment in agriculture and allied sectors, improving infrastructure, and supporting private enterprise.

Who are the implementing agencies of CMMFI?

At the state level, the Finance Department is the nodal agency. At the district level, the District Level Implementation cum Monitoring Committee (DLIMC), headed by the Deputy Commissioner, oversees implementation.

What is the funding pattern of the scheme?

The funding pattern consists of a 10% beneficiary contribution, 60% bank loan, and 30% back-ended subsidy from the Government of Nagaland.

Who are the eligible beneficiaries under CMMFI?

Eligible beneficiaries include individual farmers, entrepreneurs, unemployed youths, Self-Help Groups (SHGs), Farmer Producer Organizations (FPOs), and cooperative societies.

What are the eligibility criteria for individual applicants?

Applicants must be indigenous inhabitants of Nagaland, not defaulters to any bank, possess sufficient land for land-based activities, and have adequate experience or training in the proposed activity.

What are the eligibility criteria for SHGs?

SHGs must fulfill the Panchasutra principles: regular meetings, savings, inter-loaning, timely repayment, and up-to-date books of accounts. They should also have sufficient land for land-based activities.

What are the eligibility criteria for FPOs?

FPOs should be registered entities with at least three years of audited balance sheets, not in losses, have a minimum of 100 shareholders, and a paid-up capital of at least ₹1,00,000.

Is collateral required for loans under CMMFI?

For micro and small enterprise loans up to ₹10 lakh, collateral is not required. Beneficiaries seeking loans above ₹10 lakh can opt for collateral-free loans through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.

What is the repayment period for loans under CMMFI?

The repayment period is up to a maximum of 7 years.