Mizoram Formalizes Agreements with Banks to Boost Support for Entrepreneurs and Farmers through Major Initiative

Aizawl, Dec 18 (NationPress) The Mizoram government has officially entered into agreements with its banking partners to offer financial loans as part of the state's prominent initiative, the handholding scheme – Bana Kaih, which is crafted to stimulate economic development and promote self-reliance.

The Bana Kaih initiative, which was inaugurated in September of this year, serves as the state government's flagship program focused on advancing self-sufficiency and inclusive economic growth within Mizoram.

The core goal of this scheme is to aid in realizing the vision of 'Viksit Bharat' (developed India) while contributing to the attainment of the United Nations Sustainable Development Goals (SDGs).

In a ceremony attended by Chief Minister Lalduhoma, a Memorandum of Agreement (MoA) was executed between the Mizoram government and three banking partners: State Bank of India (SBI), Mizoram Rural Bank (MRB), and Mizoram Cooperative Apex Bank Ltd. (MCAB).

The MoA facilitates the loan distribution under the Bana Kaih initiative.

Additionally, the Chief Minister introduced the 'Chief Minister's Bana Kaih Innovation Challenge'.

A government representative stated that a crucial aspect of the scheme is the handholding of progress partners, wherein eligible individuals are granted loans from affiliated banks, with the government serving as a guarantor for these loans.

Furthermore, the government will offer an interest subvention of up to 100% for partners who consistently repay their loans, thereby alleviating the financial strain on beneficiaries and promoting timely repayments.

Another significant feature of the handholding scheme is market support.

As part of this initiative, the government has established a Minimum Support Price (MSP) for four essential crops: Ginger, Broom, Turmeric, and Mizo Birdeye Chilli.

"If farmers are unable to secure a market price lower than the government-declared rate, they will receive support up to the government’s price. Additionally, during a pilot phase, paddy from Kolasib and Mamit districts will be procured at a minimum support rate of Rs 30 per kilogram starting this year," the official highlighted.

The scheme also encompasses the Chief Minister's Special Category Scheme, which provides grants of up to Rs 1 lakh.

A senior official elaborated that the Bana Kaih initiative comprises five significant components, as specified in the government’s guidelines, with the standout feature being collateral-free and interest-free bank loans.

This financial support package is designed for selected progress partners (beneficiaries), allowing loans up to Rs 50 lakh through the partner banks.