IND Micro Food Processing Enterprises- (PMFME)

Target Group:

• The existing individual Micro Food Processing Enterprises, as well as groups such as SHGs/ FPOs/ Cooperatives would be supported under the scheme for up-gradation of their food processing activities.

Objective:

• Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives
• Integration with organized supply chain by strengthening branding & marketing;
• Increased access to common services like common processing facility, laboratories, storage, packaging, marketing and incubation services;
• Strengthening of institutions, research and training in the food processing sector; and increased access for the enterprises, to professional and technical support.
• To enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector; and to support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.

Type of Facility:

• Term Loan : Term Loan is eligible for subsidy. Need based working capital also can be financed under other schemes.

Margin Norms:

• Minimum 10%

Repayment Period:

• Repayment for commercial activity is to be fixed based on life cycle of the project, on the cash flows, on ballooning basis, or as bullet payment or in EMI.
• Term Loans – Maximum repayment period allowed is 15 years.

Processing Charges:

• Upto Rs.25000/ : Nil
• above Rs.25000/-: 0.50% of the limit sanctioned + Applicable GST(All other charges: As per circular on service charges related to Agri advances issued from time to time).

Rate of Interest:

• Please refer the Lending Rates link on home page in our Bank’s Website www.indianbank.in.

Security Norms:

• Primary: Hypothecation of machineries / EM of factory land & building / charge on assets created out of Bank finance.
• Collateral: No collateral should be obtained for limit up to Rs. 10 Lakhs.
• Minimum Security Coverage Ratio of 1.20 should be maintained at all times.
• Guarantee: Suitable third party guarantee may be obtained depending upon the loan amount.

Subsidy / Grant:

• Credit linked subsidy to existing Micro Food Processing units at 35%, with maximum subsidy of Rs. 10.00 Lakhs.
• Credit linked capital investment Grant at 35 % to FPOs/ SHGs/ Cooperatives.
• Grant at 35% or maximum Rs.3.00 Cr. for common infrastructure development by groups, government agencies or private entities.
• The subsidy amount would be adjusted against the loan, if the account is standard and the unit is operational after three years from the date of disbursement of the loan. (or) Grant amount would be adjusted by the bank against repayment.

* MCLR RATE – Available in Home Page