- Loreni Tsanglao, NET Correspondent, Nagaland
The Union Finance Minister – Nirmala Sitharaman noted that the central government has been striving to enhance farmers’ income through investments in agri and allied sector, improve agri-marketing network and infrastructure, promote credit discipline and boost private enterprise.
Addressing the launching ceremony of the CM’s Micro Finance Initiative on Tuesday, Sitharaman pointed-out that the concerned scheme will ensure availability of affordable credit for initiating economic activities.
“The eligible beneficiaries for the scheme are farmers, entrepreneurs, Self Help Groups, Farmer Producer Organizations/Company and cooperative societies. The eligible schemes are construction of circular eco-hatchery, rejuvenation of animal husbandry through credit linkage, procurement of transport vehicle for agriculture products, integrated farming system, horticulture crop loan scheme and micro finance scheme for micro-enterprises,” – she stated.
The funding pattern are as follows, beneficiaries contribution – 10%, bank loan – 60%, back-ended subsidy by Government of Nagaland – 30%.
In addition, the state government shall also provide interest subvention of 4% to KCC loans and credit linkage to farmers, over and above the 3% provided by the centre on prompt repayment of dues by the borrower.
“Moratorium period upto maximum of 6 months. Repayment period upto maximum of 7 years and maximum ceiling admissible under this scheme will be Rs. 15 lakhs,” – he added.
The Union Finance Minister mentioned that the centre has attempted to bring in every government schemes to be executed in such a way that all eligible citizens are covered across Nagaland.
It has become mote significant because of the nature and terrain that the state is endowed with, and access being a challenge, the only way to overcome the challenge is the mobile connectivity.
She highlighted that banks which deal with very essential financial requirements need to keep themselves adapt and up-to-date on technologies which enable mobile banking.
Sitharaman stressed on the crucial role played by Bank Mitras in a state like Nagaland, where even a block headquarter becomes difficult for villagers to reach.
The union minister also expressed happiness that Bank Mitras are serving its purpose well in the state; and encouraged the banks to have a few more of them so there is greater access for the villagers.
She commended the State of Nagaland for performing well in schemes like Atal Pension Yojana, MUDRA and Stand Up India schemes.
Sharing about Start Up schemes, she stated that “the PM wants young minds in rural areas to come up with innovative ideas which can be skilled up and which will need support, for which the banks were instructed through their branches to give one SC, one ST and a woman similar assistance which is given to Start Ups.”
She noted that the scheme is fairly well accomplished in Nagaland under which 523 accounts have been already given and 112 crores disbursed through loans for SCs and STs.
Sitharaman has also set a target of outreach by district to commence by September 1, 2022 and to conclude by November 30, 2022 for all eligible beneficiaries to avail the benefits from the credit schemes.
She requested the Nagaland Chief Minister – Neiphiu Rio to utilize the state machinery in identifying the eligible citizens for the concerned schemes.
Besides, Rio underlined that the banks will be extending credit of Rs 223 crores under various schemes as well as retail loans to the people of Nagaland.
He stated that large proportion of the credit by banks, other than that extended under various Government schemes, has been for consumer goods or housing loans.
“While this is essential, it is also imperative to increase the credit flow to those who require it for running their enterprises. This is a critical area where banks have to put in more efforts, and the State Government is ready to support them and address their concerns,” he added.
