Financing growth & transforming rural India.
Bank of Baroda, for rural India, with rural India.
Scheme for Financing Facility under PM Formalization of Micro Food Processing
Fees & Charges
Most Important Terms and Conditions (MITC)
Scheme for Financing Facility under PM Formalization of Micro Food Processing : Benefits
Support to Individual Micro Enterprises: credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10.0 lakh per unit.
- Support to Group Category:
- FPOs and Producer Cooperatives would be provided Grant @35% with credit linkage (As per guidelines of PM Formalization of Micro Food Processing Enterprises Scheme (PM FME Scheme)
- Support to Self Help Groups (SHGs) as follows:
- Seed capital @ Rs. 40,000/- per member of SHG for working capital and purchase of small tools.
- Support to individual SHG member as a single food processing unit with credit linked grant @35% with maximum amount being Rs 10 lakh.
- Support for capital investment at federation of SHG level, with credit linked grant @35%. Maximum limit of grant in such cases would be as prescribed by respective state.
- Need based funding requirement of project/borrower
- Facilities can be availed as TL, CC, BG, LC, BP, BD, Export Credit for pre shipment and post shipment
- Repo Rate and Credit Rating linked ROI
- Low Margin: Minimum 10%
- Benefit of Credit Guarantee Coverage
Scheme for Financing Facility under PM Formalization of Micro Food Processing : Features
- Finance for upgradation of existing Micro Food Processing enterprises under PM Formalization of Micro Food Processing Enterprises Scheme
- Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups (SHGs) and co-operatives
- Integration with organised supply chain by strengthening branding and marketing
- Increased access to common services like common processing facility, laboratories, and 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
Scheme for Financing Facility under PM Formalization of Micro Food Processing : Eligibility Criteria
Eligibility criteria for Individual Micro Enterprises:
- Existing micro food processing units in operation
- Existing units should be those identified in SLUP for ODOP (One District One Product) or by the Resource Person on physical verification.
- The enterprise should be unincorporated and should employ less than 10 workers.
- Ownership status could be Proprietary /Partnership Firm
- The applicant should be above 18 years of age and should possess at least VIII standard pass educational qualification
Eligibility Criteria for Co-operatives/FPOs
- FPO should have minimum turnover of Rs 1 Crore and preferable engaged in processing of ODOP produce.
- The members should have sufficient knowledge and experience for a minimum of 3 years period
Eligibility Criteria for Seed Capital for SHGs
- Only SHG members that are presently engaged in food processing are eligible
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 a grant from state Government
Scheme for Financing Facility under PM Formalization of Micro Food Processing : Document Required
- KYC Documents (AADHAR, Voter ID, PAN Card, Driving License etc.)
- Passport Size photo
- Land Record
- Quotation/Invoice (if available)
- Project Report (if available)
- IT Returns (if available)
Scheme for Financing Facility under PM Formalization of Micro Food Processing : Fees & Charges
For Working Capital (Fresh/Review)
- Above Rs. 3 lacs to Rs, 10 Lacs - Rs.250 per lac or part thereof +GST
- Above Rs. 10.00 lacs - Rs. 350/- per lac or part thereof +GST
Non Fund Based:
- 50% of charges applicable for Fund Based Limit
For Term Loan (Fresh):
- Above Rs. 3.00 lacs - DL/TL 1% of the limit sanctioned + GST
For Term Loan (Review)
- Above Rs. 3.00 lacs - Rs. 60/- per lac or part thereof +GST
Scheme for Financing Facility under PM Formalization of Micro Food Processing : Most Important Terms and Conditions (MITC)
|Age Criteria||For Individuals: Minimum 18 years (if the age of applicant exceeds 70 years, in such case the legal heirs to be made co borrower) For Non-Individuals – Not applicable|
|Quantum of Loan||Need based funding to be considered looking to the requirement of the project/borrower|
|Nature of Facility||Term loan and Working Capital in the form of Term Loan/Demand Loan/ Cash Credit/Bank Guarantee/Letter of Credit/BP/BD, Export Credit pre-shipment and post shipment.|
|Repayment Period||Working Capital: 12 months. Term loan up to 84 months (including up to 12 months moratorium period) subject to annual review.|
For loans upto 1.60 Lakh
For loans upto 1.60 Lakh
|Margin||Minimum 10% of the project cost|
|Moratorium Period||Maximum upto -12- months|
|Repayment Period||-12- Months for Working Capital Upto 84 months for Term loan (including upto -12- months moratorium period) Subject to annual review|
|Rate of Interest||