Pradhan Mantri Formalisation

Key Benefits & Features of PM FME

Purpose

  • Improve the competitiveness of individual micro-enterprises within the unorganised food processing sector and encourage formalisation within the industry.
  • Support Farmer Producer Organisations (FPOs), Self Help Groups (SHGs), and Producers Cooperatives throughout their entire value chain.
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Scheme Details

    Margin

  • Minimum margin of 10%.

    • Nature of facility

  • Working Capital & Term Loan

    • Quantum of Loan

  • The PM FME scheme offers loans for up to 90% of the total project expenditure.
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Scheme Benefits

  • Credit Linked Grant/Subsidy: Receive up to 35% of the eligible project cost, capped at ₹10 lakh per unit.
  • Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE): Access collateral-free loans up to ₹2 crore.
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Eligible Entities

  • Farmer Producer Organisation (FPO)
  • Self Help Groups
  • Co-operatives
  • Existing Micro Food Processing Entrepreneurs
  • New Units, whether for individuals or groups, would only be supported for One District One Product (ODOP).
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Frequently Asked Questions

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme, introduced by the Ministry of Food Processing Industries, aims to assist both new and existing micro food processing businesses. The objective of the PMFME is to support expansion, upgradation, and establishment of new micro food processing ventures.

This Scheme is available to:

  • Farmer Producer Organisation (FPO)
  • Self Help Groups
  • Co-operatives
  • Existing Micro Food Processing Entrepreneurs
  • New Units, whether for individuals or groups, would only be supported for One District One Product (ODOP).

The PMFME is a scheme that aims to provide micro-food processing enterprises with financial, technical, and business support. The primary objective of this scheme is to help such businesses upgrade their existing units and bring unorganised micro food enterprises into an organised framework.

To apply for this scheme, visit HDFC Bank's official website, move to 'Agri' and choose Pradhan Mantri Formalisation of Micro Food Processing Enterprises’ to proceed with the next steps.