PM Formalization of Micro Food Processing Enterprises (PMFME Scheme)

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PM Formalization of Micro Food Processing Enterprises (PMFME Scheme)

Purpose

  • Enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.
  • Support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.

Objectives

  • Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives.
  • Integration with organized supply chain by strengthening branding & marketing.
  • Support for transition of existing 2,00,000 enterprises into formal framework.
  • 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 and
  • lncreased access for the enterprises, to professional and technical support.

Features

  • Type of Facility: Term loan
  • Margin: Minimum of 10% of the project cost.
  • Quantum of Loan:
    • Minimum loan: No ceiling
    • Maximum loan: No ceiling
  • Repayment: Max. 10 years including maximum moratorium of 6-24 months.
  • Security: As per Bank’s extant guidelines.
  • Interest rate: -
    • For Eligible MSME Entities:
      • Loan up to Rs. 2 Cr: EBLR (External Benchmark based Lending Rate) +200 bps.
      • Loan above Rs. 2 Cr: As per Bank’s extant guidelines.
    • For Other Categories: FPOs/ SHGs/ Producer Cooperatives:
      • Loan up to Rs. 50 lakhs: EBLR +360 bps
      • Loan above Rs.50 lakhs: As per Bank’s extant guidelines.
  • Upfront fee : As per Bank’s extant guidelines, are subject to revision by bank from to time.
  • Subsidy/ Grant
    • Individual Micro Enterprises: Capital Subsidy @35% of the eligible project cost with a maximum ceiling of 10.00 lakh per unit.
    • FPOs/ SHGs/ Co-operatives: @35% of eligible project cost.
    • Common Infrastructure Development: @35 % of eligible project cost.
  • Credit Guarantee : For MSME: - CGTMSE for collateral free loan up to Rs.5 Cr. Other categories: For loans under MUDRA credit guarantee of CGFMU.
  • Portal : https://pmfme.mofpi.gov.in
  • FAQs : For more details, please visit nearest SBI Branch.

Eligible Entities

Individual entrepreneurs/ Proprietorship Firms/ Partnership Firms/ Farmer Producer Organizations (FPOs)/ NGOs/ Cooperatives/ SHGs/ Pvt. Ltd. Companies, who have established or propose to establish micro food processing unit


Document Required

  • Application Form
  • Two Passport Size Photographs.
  • ID proof such as Driving License/ Aadhar Card/ Voter Identity Card/ Passport.
  • Address Proof such as voter ID card, Driving License, Aadhar Card.
  • Detailed Project Report (DPR)
  • Any other document as per sanction.

Last Updated On : Saturday, 18-11-2023

Interest Rates

8.50%* p.a. onwards

w.e.f. 05.04.2024

*T&C Apply.

 

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