The northeastern Indian state of Mizoram’s Chief Minister Pu Lalduhoma has formalized a Memorandum of Agreement (MoA) with partner banks of the government that will ensures access to collateral-free and interest-free loans for eligible participants of its flagship programme.
A significant step towards fostering economic self-reliance and empowering entrepreneurs and farmers, the Bana Kaih scheme introduces a range of measures, such as the provision of interest subvention where beneficiaries can receive up to 100% interest relief by adhering to regular loan repayment schedules.
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Mizoram’s government would act as a guarantor in this collaboration created to drive inclusive development and, among other things, to safeguard farmers from volatile market conditions with market support mechanisms like a Minimum Support Price (MSP) for key crops.
The Bana Kaih scheme aligns with United Nations Sustainable Development Goals (SDGs) and the Indian government’s initiative “Viksit Bharat” (Developed India).
