PMFME Scheme : Check All Details about PMFME Loan Application and Eligibility

September 05, 2024
Registrationwala

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PMFME Scheme : Check All Details about PMFME Loan Application and Eligibility

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PMFME Scheme : Check All Details about PMFME Loan Application and Eligibility

September 05, 2024

Registrationwala

The Government of India regularly comes up with schemes for supporting enterprises. One such scheme is the PMFME scheme, which was launched by the Ministry of Food Processing Industries (MoFPI) in 2020 as part of India’s Aatmanirbhar Bharat Abhiyan. This scheme empowers micro-food processing enterprises by providing them with financial, technical and business assistance. This scheme is being implemented for a period of five years, from 2020-21 to 2024-25. To know more about the PMFME scheme and how you can apply for loans and subsidies under this scheme through the PMFME portal, check out this article!

About PMFME Scheme

The full form of the PMFME scheme is the PM Formalisation of Micro Food Processing Scheme. It was launched on 29th June 2020 as an initiative of the Ministry of Food Processing Industries. The PMFME scheme was implemented in 2020 and will remain in force till 2025. The total outlay for this scheme for the period 2020-2025 is Rs. 10,000.

The PMFME scheme is especially designed to support agri-food processing groups such as Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along with their entire value chain. The goal of the scheme is to enhance the competitiveness of existing individual micro-enterprises in the food processing industry’s unorganized segment and promote its formalization. To achieve this goal, this scheme offers financial, technical and business assistance to micro-food processing enterprises.

Objectives of the PMFME scheme

The following are the objectives of the centrally-sponsored PMFME Scheme:

To offer PMFME loan and PMFME subsidy to all the eligible micro food processing businesses for the development of the food processing industry.
To increase credit access for existing micro food processing businesses, self-help groups, co-operatives and FPOs.
To strengthen the institutions, research and training in the food processing industry.
To offer support for the transition of existing 2,00,000 enterprises into the formal framework.
To increase access for enterprises to professional and technical assistance.
To increase access for enterprises to common services such as marketing, packaging, storage, laboratories, incubation services and common processing facilities.

Assistance under the PMFME Scheme

The PMFME scheme offers assistance to businesses through the following:

Seed capital @ Rs. 40,000/- per SHG member for the purpose of working capital and purchase of small tools.
Food processing entrepreneurs through credit-linked capital PMFME subsidy at 35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
Credit-linked grant of 35% for capital investment to SHGs/FPOs/producer cooperatives.
Support for micro-units in terms of marketing & branding.
Support to SHGs, FPOs and Producer Cooperatives for common infrastructure and handholding support.
Providing capacity building and training support to increase the enterprises’ capabilities and enhance the skills of workers.
Collateral-free PMFME loan up to Rs 2 crore through the Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE).

Food Processing Activities Non-Eligible for PMFME Subsidy

The following food processing activities are not eligible to avail of benefits, loans or subsidies under the PMFME scheme:

Trading and selling of unprocessed millets, cereals or spices.
Unprocessed or loose Milk (selling of milk/curd).
Trading and selling of fruits & vegetables.
Trading and selling of unprocessed minor forest products.
Beekeeping/loose selling of Honey.
Poultry/piggery/goatry or any other rearing activity of animals.
Trading and selling of fresh Fish/meat/chicken etc.
Repacking of manufactured products.
Canteen, grocery, hotel, tiffin services, restaurants or any other food service enterprises.
Loose selling, trading and repacking of oil.
Trading and selling of groundnut/areca nut. (Exception: Any proposal made for export variety would be reviewed on a case to case basis. For such cases, the State Government must take MoFPI’s prior approval.

Eligibility Criteria for PMFME

There are different PMFME eligibility criteria according to different categories. We’ll discuss each eligibility criteria one by one:

Eligibility Criteria for Seed Capital for SHGs

Self-help groups must fulfil the below-mentioned criteria to be eligible for the PMFME scheme:

Only SHG members who are currently engaged in food processing shall be considered eligible.

Eligibility Criteria for Credit Linked Grant for SHGs

Self-help groups must fulfil the below-mentioned criteria to be eligible for credit-linked grants under the PMFME scheme:

The SHGs shall have enough funds of their own to meet 10% of the project cost and 20% margin money required for working capital or sanction of the same as a grant from the government of their state.

Eligibility criteria for Individual Micro Enterprises

The individual micro-enterprises must fulfil the following criteria to be eligible for PMFME scheme benefits or assistance:

Existing micro food processing units that are currently operating business
The enterprise should be unincorporated and should have employed less than 1 individual.
Ownership status could either be sole proprietor or partner at a partnership firm
The applicant must be above 18 and should have passed at least VIII standard in school.

Eligibility Criteria for Co-operatives/FPOs

Co-operatives or FPOs must fulfil the following criteria to be eligible for the PMFME scheme:

The FPOs shall have a Rs. 1 crore minimum turnover and be preferably engaged in the processing of One District One Product (ODOP) produce.
The members shall have sufficient knowledge and a minimum experience of 3 years.

Documents Required for PMFME Loan & Subsidy

The following documents are required to be submitted along with the application for the PMFME scheme:

KYC Documents such as Aadhaar, Voter ID, PAN Card, Driving License, etc.
Passport Size photo
Quotation/Invoice
Detailed Project Report
Two Passport Size Photographs
IT Returns
Land Record

How to Apply for the PMFME Scheme?

To avail PMFME scheme subsidy, you can apply for the PMFME scheme online by visiting the PMFME portal. To apply for PMFME loan online, follow these steps below:

Step 1: Visit the PMFME portal and then register as a user. Basic details like Name, Mobile No., Email ID, Address, etc., will have to be filled in to register yourself.

Step 2: After registration, a password generation link will be sent to your registered Email ID with User ID and District Resource Person contact details. Use login credentials to log onto the PMFME portal.

Step 3: Now, you should fill out the Detailed Project Report (DPR), which has been divided into 6 parts, namely, applicant details, proposed business details, proposed financial details, lending bank, upload documents and declaration and submit. Once done, you must proceed to upload all the required documents.

Step 4: Once you are done with all the steps, you must give a declaration that all the information provided by you is correct, and then submit the PMFME application.

By following these steps, you can apply for PM Formalisation of Micro Food Processing Scheme on the PMFME portal. For more PMFME details, you can check out the applicant manual available on the PMFME portal.

Conclusion

The PMFME scheme of the Ministry of Food Processing Industries is a part of India’s self-reliant programme, Aatmanirbhar Bharat. It was rolled out in June 2020 with the aim of helping out the existing micro-food processing businesses in the country. Since its inception, the PMFME scheme has been able to provide increased access to credit to existing micro food processing entrepreneurs, FPOs, Self Help Groups and Cooperatives in India. By following the steps mentioned in this blog post, you can apply for the PMFME loan and subsidy online through the PMFME portal.