Delays, bank overload hit CMMFI rollout in Kohima

The Chief Minister’s Micro Finance Initiative (CMMFI), launched in August 2022 to boost grassroots entrepreneurship and agricultural productivity, is facing significant implementation challenges in Kohima district, particularly delays in beneficiary selection and mounting pressure on banks.
The scheme offers loans up to Rs 50 lakh with a subsidy of 30% (capped at Rs 5 lakh), along with collateral-free credit and interest support during a six-month moratorium period.
In an exclusive interview, Deputy Commissioner Kohima, B. Henok Buchem, said beneficiary selection, which is supposed to be conducted every two months by the District Level Implementation and Monitoring Committee (DLIMC), has often been delayed due to a high volume of applications and other constraints, sometimes extending beyond a month.
For the financial year 2025-26, he said 154 loans were sanctioned. However, many banks are yet to upload sanction letters on the credit portal. Common ventures taken up by beneficiaries include piggery units, pick-up trucks and provision stores.
The DC highlighted that a major challenge was the concentration of applications in a few bank branches– particularly State Bank of India’s Main, Lerie and Bazar branches—leading to excessive workload and delays in processing and sanctioning.
He said requests by applicants to change banks or modify projects after DLIMC approval further slowed the process, as these require fresh verification and coordination between departments and banks.
Buchem also noted that many applicants submit poorly prepared business plans, while a tendency to opt for similar ventures has led to market saturation and raised concerns among banks regarding repayment capacity.
He added that non-participation of some banks has been flagged with the CMMFI Cell under the finance department and would be taken up at the State Level committee for resolution.
Despite these challenges, the scheme continues to provide accessible credit to farmers, self-help groups and entrepreneurs, promoting livelihood generation and inclusive economic growth across the state.