Cent PM FME Scheme

Purpose

-To build Capability of Micro Enterprise to enable;

1. Increased access to credit by existing micro food processing entrepreneurs,FPOs, SHGs, and Cooperatives
2. Integration with organized supply chain by strengthening branding & marketing
3. Support for transition of existing enterprises in to formal framework.
4. Increased access to common services like common processing facility, laboratories, storage, packaging, marketing and incubation services
5. Strengthening of Institutions, Research and Training in the Food Processing Sector.
6. Increased access for the enterprises, to professional and technical support.

Eligible Entities

• Individual Micro Enterprises, farmer Producers Organisation (FPOs)/Producers Cooperatives and SHGs.

Nature of facility

• Term loan, Cash Credit, OD Book Debts against receivables and NFB limits –Bank Guarantee (BGs)

Margin

• Minimum 10 %

Security

• Primary-Hypothecation of assets created out of bank's finance.
• Collateral
• No collateral for limit uptoRs 2.00 Crore since advance will be covered under CGTMSE.
• For limits above Rs.2.00 Crore-Total value of collateral security should be at least 150% of the amount financed by Bank

Subsidy

• Individual micro food processing units would be provided credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10.00 Lakh per unit. Beneficiary contribution should be minimum of 10% of the project cost with balance being loan from the Bank.