As of 24 January 2025, Mokokchung District has received 76 applications under the Chief Minister’s Micro Finance Initiative (CMMFI) scheme. The finalization of the list of applicants took place on 27 January 2025, as reported earlier by this newspaper.
Out of the 76 applications, 25 loan applications have been rejected so far, according to Imsurenla Longkumer, Centre Manager of SCK Mokokchung.
“There are various reasons for the rejections,” Longkumer said. “Undisclosed loans by beneficiaries, existing loans, bank jurisdiction issues, and concerns regarding insurance have led to many rejections.” She also mentioned that there could be more rejections once the banks conduct spot verifications.
A key reason for the rejection of loan applications is the banks’ refusal to finance dairy and poultry projects due to “insurance concerns.” “All banks, except Nagaland Rural Bank (NRB), have declined to finance dairy and poultry projects due to insurance issues,” Longkumer stated. She added that NRB remains the only eligible bank willing to provide loans for these sectors.
When asked if the State Authority will intervene in the insurance issue, considering that the CMMFI scheme explicitly mentions dairy and poultry, Longkumer said, “The government is also working on insurance for poultry and dairy, but I don’t know when the deal will happen.”
Longkumer also clarified, “If applicants want to apply for the dairy sector, they must open an account at NRB.”
Regarding the “bank jurisdiction issue,” Longkumer explained, “Bank jurisdiction issues arise when the beneficiary’s business is located in a different area (e.g., Kelingmen) than their bank branch (e.g., Mokokchung).” She advised that beneficiaries can reapply if they transfer their bank account to a branch within their business jurisdiction.
