Mizoram launches Bana Kaih 3.0, plans foreign placement loans for youths

Mizoram Chief Minister Lalduhoma on September 18 launched the third phase of the state government's flagship Bana Kaih (Handholding 3.0) scheme, announcing plans to introduce a foreign placement loan component to help young people seeking employment opportunities abroad.

Launching the scheme in Aizawl, Lalduhoma said the government was considering the new loan facility in view of the difficulties faced by youths seeking jobs outside Mizoram, particularly due to limited access to institutional credit.

The proposed foreign placement loans are expected to support young people with expenses associated with securing employment abroad, the chief minister said.

Lalduhoma said several long-standing government commitments were being progressively implemented through Bana Kaih, including procurement of agricultural produce at support prices and interest-free loans backed by 100 per cent interest subvention and government guarantees.

The third phase will also include a proposed rehabilitation scheme for beneficiaries, known as progress partners, whose projects have failed due to circumstances beyond their control.

The chief minister stressed the need for closer monitoring of projects, saying inadequate follow-up had contributed to the failure of several initiatives in the state. He urged beneficiaries to cooperate with implementing departments and partner banks.

7,275 beneficiaries covered

According to officials, the first two phases of Bana Kaih covered 7,275 beneficiaries under the Chief Minister's Special Package.

A total of Rs 33.51 crore has been spent on assistance to 5,368 families, officials said.

Under the loan component, banks have sanctioned Rs 46.37 crore to 509 of the 823 selected prospective progress partners. Applications from 314 selected beneficiaries are yet to be sanctioned.

The government has allocated Rs 350 crore for Bana Kaih during the 2026-27 financial year, including Rs 150 crore specifically earmarked for procuring five key crops such as ginger, turmeric and broomsticks.

Focus on farmers and small businesses

The Bana Kaih scheme seeks to improve access to institutional credit, particularly microcredit, for agriculture and small-scale industrial activities.

Under its handholding component, the government provides financial assistance and facilitates loans of up to Rs 50 lakh through three partner banks.

The Chief Minister's Special Category Scheme provides grants-in-aid to beneficiaries who are unable to access loans but have significant livelihood projects.

Lalduhoma also called for greater promotion of organic and permanent farming to reduce dependence on chemical fertilisers brought into Mizoram from outside the state.

According to officials, the government has so far spent Rs 1.26 crore on guarantee fees and interest under the loan component, including Rs 1.12 crore towards loan interest. Mizoram is stated to be the only state providing 100 per cent interest subvention under the arrangement.

Rs 50 crore-plus ginger support

The state's ginger support-price programme has also emerged as a major component of Bana Kaih.

As of September 8 this year, Rs 50.68 crore had been paid to 11,655 farming families under the programme. In 2025, Rs 140.84 crore was paid to 22,155 farmers.

The government said the broader objective of Bana Kaih is to strengthen livelihoods, expand access to credit and promote inclusive economic development in Mizoram.