Scheme Objective

Support to individual Micro Enterprises for both existing or new micro food processing enterprises for expansion/upgradation of existing micro food processing enterprises or setting up of new micro food processing enterprises.

Eligible

• Individuals
• SHGs
• Farmer Producers Organizations (FPOs)
• Other eligible organizations involved in food processing can apply for assistance under the scheme. 

Nature of Facility

• Term loan
• Cash Credit

Quantum of Loan

The scheme doesn’t have minimum and maximum loan amount.

The total eligible project cost not exceeding Rs. 10 crores for non-individuals (FPOs, SHG and cooperatives).

Security

• No collateral security is required upto 10 Lakhs, as the loan is often covered under MUDRA or CGTMSE. 
• Above 10 lakhs, hypothecation of assets (machinery, equipment, etc.) created from the loan is typically required. For immovable assets, mortgage may be required. 

Repayment

10 years, (Including moratorium period of 6 months to a maximum of 24 months.)

RoI

As per bank guidelines.

Margin

Minimum of 10% of the project cost will be mandatory as promoter’s contribution

Subsidy

35% of the project cost to a maximum of 10 lakhs for individuals per unit.

35% of the project cost to a maximum of 3 crores for non-individuals.

Website

 https://pmfme.mofpi.gov.in