Objective

Providing financial, technical, and business support for upgradation of existing micro food processing enterprise/ establishing new enterprise

Nature and
Purpose of
Advance

Term loan and need based working capital to build capability of micro enterprises to enable Increased access to credit by existing/new micro food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives/ Integration with organized supply chain by strengthening branding & marketing/ increased access to common services like common processing facility, laboratories, storage, packaging, marketing and incubation services/ Strengthening of institutions, research and training in the food processing sector & Increased access for the enterprises, to professional and technical support.

Quantum of Loan

Project under the PM FME scheme shall be eligible for loan up to 90% of the estimated/actual project cost on submission of viable projects be eligible beneficiaries.

Eligibility

Micro Enterprises:

Individual, Proprietorship firms, Partnership firms, FPO (Farmer Producer Organization), NGO (Non-Government Organization), SHG (Self Help Group), Co-op (Cooperative), Pvt Ltd. Companies.

Existing/ New enterprise - Both ODOP & Non-ODOP.

Financial Support - For all Individual/Proprietorship / Partnership / FPO/ NGO/ SHG/Co-op/Pvt Ltd. Companies- credit linked capital subsidy @35% of eligible project cost max Rs.10.00 Lakh for eligible projects.

Applicant is also eligible for Interest Subvention and Top Up convergence with other relevant Govt Sponsored Schemes

For Setting up common infra structure:

FPO (Farmer Producer Organization), SHG (Self Help Group) and its federation, Govt. agencies.

Existing/ New enterprise - Both ODOP & Non-ODOP.

Financial Support - Credit linked capital subsidy @35% of eligible project cost with max ceiling of Rs.3.00 crore. (Total eligible project cost should not exceed Rs. 10 Crore).

Eligibility Criteria for Individual Micro enterprises:

Existing micro food processing units in operations, with investment not exceeding Rs.1 crore and turnover not exceeding Rs.5 crore.

The applicant should be above 18 years of age 

Education qualification - no minimum educational qualification

Only one person from one family would be eligible for obtaining financial assistance. The "family" for this purpose would include self, spouse and children

Eligibility Criteria for Co-operatives/FPOs:

• It should preferably be engaged in processing of ODOP produce.
• It should have minimum turnover of Rs. 1 crore.
• The cost of the project proposed should not be larger than the present turnover.
• The members should have sufficient knowledge and experience in dealing with the product for a minimum period of 3 years.
• The cooperative/FPO should have sufficient internal resources or sanction from the State Government to meet 10% of the project cost and margin money for working capital.

Eligibility Criteria for Credit Linked Grant for Capital Investment for SHGs:

• The SHGs should have sufficient own funds for meeting 10% of the project cost and 20% margin money for working capital or sanction of the same as grant from the State Government.
• The SHGs members should have a minimum period of 3 years' experience in processing of the ODOP product.

Support for Common Infrastructure, Marketing and Branding:

• Eligibility of a project under this category would be decided based on benefit to farmers and industry at large, viability gap, absence of private investment, critically to value chain, etc. Preference would be given for ODOP product.

Security

Credit facility under this scheme can be considered with CGTMSE coverage as per the CGTMSE guidelines.

In all other cases:

Up to Rs. 2.00 Lakhs:  Hypothecation of assets created out of loan. Nil Collateral

Above Rs. 2.00 Lakhs: Loan should be adequately secured by way of immovable property whose value is not less than/ equal to the loan amount.

Margin

Minimum 10% of the project cost

SHG - 20% for working capital

Repayment

Maximum 10 years including moratorium period

Holiday Period

Maximum 36 months

Rate of Interest

Processing Charges

Up to Rs. 50,000/- - Nil

Above Rs. 50,000/- up to Rs. 3 Lakhs - 0.30% of the loan amount

Above Rs. 3 Lakhs - 0.71% of the loan amount

Conditions apply

*For more details, please contact our nearest branch

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