Hangal, Manager of the State Bank of India (SBI) Bazaar Branch in Mokokchung, observed that most businesses in Mokokchung are run by outsiders and encouraged the local community to take the initiative in establishing their own businesses in Mokokchung. He stated that this move would significantly contribute to the town’s economic growth.
Hangal, speaking as a resource person, made this remark during the first day of the Mokokchung Second Entrepreneurship Program, a three-day initiative launched by Swavalamban Connect Kendra (SCK) to empower 20 entrepreneurs in Nagaland. The training program is supported by the Small Industries Development Bank of India (SIDBI), the Investment and Development Authority of Nagaland (IDAN), and the District Administration, featuring expert resources from banks, the District Industries Centre (DIC), and the Women Entrepreneurs Network Nagaland (WENN).
For first-time farmers, Hangal recommended loans between Rs. 3-4 lakhs for piggery businesses, noting that well-prepared proposals with proper documentation increase the likelihood of loan approval. He assured aspiring entrepreneurs of assistance through SBI’s grievance mechanism if they encountered challenges with their loans.
Additionally, Hangal advised that using personal savings to fund a business is “not always the best option.” Instead, he suggested taking a loan from the bank, as this not only places the risk on the bank but also helps instill financial discipline in the borrower’s approach to business.
He highlighted the importance of presenting a well-prepared proposal to the bank, with proper documentation and a clear business plan, to improve the chances of loan approval.
Hangal also introduced several loan products offered by SBI, particularly emphasizing the “Stand Up India” scheme, which provides loans ranging from Rs. 10 lakh to Rs. 1 crore to at least one Scheduled Caste (SC), Scheduled Tribe (ST), and one woman borrower per bank branch for establishing greenfield enterprises. He noted that non-individual enterprises must have at least 51% of shares held by SC/ST or women entrepreneurs. The scheme also offers collateral-free loans backed by the Credit Guarantee Fund for Stand Up India (CGFSI), established by the Government of India.
He further emphasized the importance of wise investments in financial products such as mutual funds, advocating for long-term investments that offer higher returns. Hangal advised the community to avoid spending on non-essential items that do not contribute to income generation.
Hangal urged borrowers to use loans for their intended purposes and to approach bank loans with a strategic mindset.
