PM Formalisation of Micro Food Processing Scheme

The following are the eligibility criteria for the PM FME Scheme:

• The applicant must be a micro-entrepreneur in the food processing sector. 

• The applicant must be a permanent resident of India.

• Only one person per family is eligible for financial assistance. "Family" includes the applicant, spouse, and children.

• The applicant must be at least eighteen years old. 

• The applicant must have completed at least the eighth grade.

• Existing micro food processing units in operation are eligible. 

• Units identified in the SLUP for ODOP products or verified by the Resource Person are eligible.

Here are some important aspects to know about the PM FME Scheme:

• The scheme mainly targets individual entrepreneurs, proprietorships, partnerships, and private limited companies. It also supports groups like Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), Micro Food Processing Entrepreneurs, and Cooperatives across the entire value chain.

• The scheme offers food processing enterprises a credit-linked subsidy of up to 35% of the eligible project's cost, with a maximum cap of ₹10 lakh per unit.

• The Central and State governments share the scheme's costs in a 60:40 ratio. For North-Eastern or Himalayan States, the ratio is 90:10. In Union Territories, the ratio is 60:40 with legislatures and 100% funded by the Central Government without legislatures.

• SHGs receive initial seed capital of ₹40,000 under the scheme to meet working capital needs and purchase small tools.

The PM FME scheme is a beneficial initiative aimed at expanding and elevating your food processing venture as it develops. With HDFC Bank, you can avail of a Term Loan or Working Capital Loan to effectively handle your business expenses. You can also explore Agriculture Credit and other relevant loan options tailored to your specific financial requirements and eligibility. By utilising credit to efficiently manage food processing unit, you can substantially grow your venture.

Seek credit from HDFC Bank at competitive interest rates to expand your food processing project.

*Terms and conditions apply. The information provided on this page is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Term Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.