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 told the Assembly on March 6.
In a written reply to a question raised by Congress MLA C. Ngunglianchunga, the minister said that a total of 5,093 applications have been received so far. Out of these, 176 proposals have been approved for credit, while partner banks have already disbursed loans amounting to Rs 6.84 crore to 91 beneficiaries for different business and livelihood projects.
The Bana Kaih scheme was launched by Chief Minister Lalduhoma in September 2024 with the aim of providing financial assistance and structured support to entrepreneurs and farmers, who are referred to as “progress partners”. The initiative seeks to promote economic growth and encourage self-reliance across the state.
A key component of the scheme is its handholding mechanism, through which the government assists beneficiaries in securing 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.
According to the minister, beneficiaries who repay their loans on time will be eligible for interest subvention of up to 100 per cent, which will significantly ease the financial burden on entrepreneurs.
The programme also includes the Chief Minister’s Special Category Scheme, which provides grant-in-aid to individuals who are unable to access bank loans but have viable livelihood plans. Initially, the scheme offered financial assistance of up to Rs 1 lakh, but the amount has now been reduced to Rs 50,000 so that more beneficiaries can be covered.
Officials said that more than 2,200 beneficiaries have already received financial support under Phase I of the special package.
Market support is another important feature 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. This includes Rs 150 crore specifically set aside for the procurement of the five crops to strengthen the livelihoods of farmers in Mizoram.