Mizoram govt claims win as Bana Kaih scheme attracts over 5,000 applicants

More than 5,000 people have applied for loans under the Mizoram government’s flagship Bana Kaih (handholding) scheme, State Commerce and Industry Minister F. Rodingliana informed the Assembly on March 6.

 

In a written reply to a question from Congress MLA C. Ngunglianchunga, the minister said that 5,093 applications have been submitted so far under the scheme. Of these, 176 proposals have been approved for credit, while partner banks have already disbursed loans worth Rs 6.84 crore to 91 beneficiaries for various business and livelihood projects.

 

The Bana Kaih scheme was launched by Chief Minister Lalduhoma in September 2024 to provide financial assistance and structured support to entrepreneurs and farmers, referred to as “progress partners”. The initiative aims to encourage economic growth and self-reliance across the state.

 

One of the major components of the scheme is the handholding mechanism, through which the government helps beneficiaries access loans of up to Rs 50 lakh from partner banks. The state government also acts as a guarantor for these loans under existing national credit guarantee schemes.

 

The minister further stated that beneficiaries who repay their loans on time will be eligible for interest subvention of up to 100 per cent, significantly reducing the financial burden on entrepreneurs.

 

Another component of the programme is the Chief Minister’s Special Category Scheme, which offers grant-in-aid support to individuals who cannot avail bank loans but have viable livelihood plans. Initially providing assistance of up to Rs 1 lakh, the grant amount has now been reduced to Rs 50,000 to enable a larger number of beneficiaries to be covered.

 

Officials said that over 2,200 beneficiaries have already received financial assistance during Phase-I of the special package.

 

Market support also forms a key part of the initiative. As part of this effort, the government has introduced a Minimum Support Price (MSP) for five locally produced crops, ginger, turmeric, Mizo chilli, broomsticks and unhusked paddy  to ensure better returns for farmers.

 

The government has earmarked Rs 350 crore for the implementation of the scheme in the 2026–27 financial year, including Rs 150 crore specifically allocated for procurement of the five crops to strengthen the livelihoods of local farmers in Mizoram.