Last Updated on: 03/02/2025
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PMFME – (PM Formalisation of Micro Food Processing Enterprises Scheme)
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.
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:
Eligibility Criteria for Credit Linked Grant for Capital Investment for SHGs:
Support for Common Infrastructure, Marketing and Branding::
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
Less than Rs. 1.00 Crore:
1 Year MCLR
1.75%
10.85%
Above Rs. 1.00 Crore:
Rating - IOB 1 & IOB 2
0.40%
9.50%
Rating-IOB 3
0.50%
9.60%
Rating-IOB 4
0.80%
9.90%
Rating-IOB 5
1.00%
10.10%
Rating-IOB 6 and above
1.40%
10.50%
*Present MCLR: 9.10%
Processing charges
Up to Rs. 25000/- - Nil
Above Rs. 25000/- 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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