The Ministry of Food Processing Industries has announced the PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises) Scheme, which aims to support micro food processing units by providing a 35% subsidy on borrowed loans.

Updated on 5 Jul 2024, 6:05 PM IST

PMFME loan details

If you want to establish a micro food processing unit or a food processing line along with common infrastructure/ Value chain/ incubation centers, hurry up! Govt. of India has the PMFME scheme for you.

As an individual, you can take advantage of a maximum of 10 lakh rupees as a subsidy, which is 35% of the total loan amount.

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PMFME loan Subsidy:

Credit Linked Subsidy: For Individuals / Proprietorship / Partnership/ FPOs/ NGOs/ Cooperatives/ SHGs/ Pvt. Ltd. Co.

1. 35% of total amount and maximum 10 lakh
2. 90% project loan can be offer

Common Infrastructure: For the Groups – FPOs/ FPCs/ Cooperatives/ SHG and its federation/ Govt. Agencies 

1. 35% of total amount and maximum 3 crore
2. 90% project loan can be offer

PMFME loan 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.

PMFME loan eligibility:

1. Residency: The Applicant(individual/groups/company) must be a resident of India.
2. Age: Age of the applicant should be above 18.
3. Education: The minimum qualification of the applicant is 8th standard pass.
4. Type of Work: Micro Food processing Manufacturing
5. Family Limit: The loan is available for one individual per family (parents and their child).

Application process:

Documents required: Aadhar, electricity bill, PAN card, 6-month bank statement, project report

1. Apply online (sign up (if you are a new user) or login at MOFPI portal, then fill up the application form)
2. Application will be forwarded to DRP (District Resource Person), they will verify & visit your project place
3. Application will be forwarded to DLC (District Level Commitee), they confirm your loan
4. Bank Due diligence (they will check the project properly)
5. Loan disbursal & subsidy will be given after 3 years.

The government of India has initiated the scheme to enhance competition in the micro food processing sector, to generate employment & to enhance skilled workers.