Financing under PM Formalization of Micro Food Processing Scheme

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.

1. 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)
2. 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.
3. Need based funding requirement of project/borrower
4. Facilities can be availed as TL, CC, BG, LC, BP, BD, Export Credit for pre shipment and post shipment
5. Repo Rate and Credit Rating linked ROI
6. Low Margin: Minimum 10%
7. Benefit of Credit Guarantee Coverage

• 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

Eligibility criteria for Individual Micro Enterprises:

• Existing micro food processing units in operation
• 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

• 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)

Processing Charges:

For Working Capital (Fresh/Review)

Fund Based:

• 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