The Finance Department has issued new directives on March 29, 2025, to address concerns raised by the beneficiaries of the Chief Minister’s Micro-Finance Initiative (CMMFI). The directives outline key aspects of loan repayment, moratorium period, credit guarantee coverage, application process, grievance redressal, and refund policies.
The department clarified that “the EMI for loan repayment will be calculated based on 60% of the total loan amount.” Beneficiaries must pay “10% of the loan amount upfront, while the remaining 30% will be contributed by the State Government in advance.”
As per the CMMFI policy, a “six-month moratorium period is mandated,” during which “the State Government will cover the interest payments to the bank.” EMI payments will begin from the sixth month after the release of the loan.
The Finance Department emphasized that “the State Government provides CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) coverage for all eligible MSME activities.”
Banks have been “directed not to insist on third-party collateral for such loans.”
To streamline the application process, the department announced that “applications are now processed digitally,” allowing individuals, FPOs, SHGs, and startups to apply directly via the portal https://credit.nagaland.gov.in. “For any support, including registering in the portal, preparation of DPR, follow-ups with departments or banks, applicants can directly call the facilitation cell at 9077175990 or visit the SCK centers in every district under the District Administration.”
The department also clarified that “there are no charges levied by the Government or any department for processing CMMFI loans.” Any instance of individuals or entities demanding money for “preparing DPR, processing loans, or considering applications under CMMFI should be reported immediately to the CMMFI Facilitation Cell.”
Beneficiaries facing issues are advised to “promptly report them to the CMMFI Facilitation Cell at the Finance Department for immediate resolution” through the helpline number 9077175990.
The department directed that “any amount paid by beneficiaries beyond the EMI calculated on the stipulated percentage should be refunded by the bank.” This directive follows the resolutions made during the State Level Bankers’ Committee (SLBC) meeting held on February 28, 2025, and subsequent government instructions.