Introduction of Bana Kaih: A Game-Changing Financial Aid Initiative
Mizoram’s Chief Minister Lalduhoma unveiled the state’s new flagship initiative, the Handholding Scheme – Bana Kaih, on Thursday, marking a milestone in financial support for entrepreneurs and farmers. This innovative scheme aims to provide a strong foundation for economic growth through targeted programs, offering collateral-free, interest-free loans and market support for key agricultural products.
First-of-its-Kind Financial Support Package
In a statement by Mizoram government officials, the Handholding Scheme has been hailed as the first loan scheme of its kind in India. It features five key components, with its main attraction being collateral-free and interest-free bank loans for eligible beneficiaries. The state government has partnered with banks to offer loans up to ₹50 lakh, with the government serving as the guarantor under national credit guarantee schemes. Beneficiaries who consistently repay their loans may also receive interest subvention up to 100%, encouraging timely loan repayment while reducing financial burden.
The scheme includes the Chief Minister’s Special Category Scheme, offering grant-in-aid of up to ₹1 lakh. This grant is targeted at individuals who are unable to avail loans but have livelihood projects that could benefit from modest financial support.
Market Support and Minimum Support Price (MSP)
A standout feature of the Bana Kaih Handholding Scheme is its market support initiative, which introduces a Minimum Support Price (MSP) for key crops such as Ginger, Broom, Turmeric, and Mizo Birdeye Chilli. This measure ensures that farmers receive fair compensation for their produce, even when market prices drop below the government-declared rate. The state has also launched a pilot procurement phase for Paddy in the Kolasib and Mamit districts, offering an MSP of ₹30 per kilogram.
This market support mechanism is designed to stabilize prices, enhance farmers’ incomes, and provide much-needed security to those working in the agricultural sector.
Boosting Small Businesses and Agriculture in Mizoram
The Handholding Scheme is expected to significantly boost Mizoram’s economy by supporting both small businesses and farmers. By providing financial aid to entrepreneurs and ensuring stable market prices for essential crops, the scheme aims to create a self-sufficient and resilient economic ecosystem in the state.
In line with the government’s Year of Consolidation initiative, the scheme will be implemented as a pilot program for this financial year, with plans to expand based on its success.
A New Era of Economic Growth for Mizoram
The launch of the Handholding Scheme – Bana Kaih represents a new era for Mizoram’s entrepreneurs and farmers, offering them the financial resources and market support they need to thrive. This initiative not only promotes self-sufficiency but also contributes to the state’s long-term economic development.
With Mizoram setting an example for innovative financial support, the Bana Kaih Handholding Scheme promises to empower the state’s entrepreneurs and farmers, paving the way for sustainable growth and prosperity.
