Pradhan Mantri Formalisation of Micro Food Processing Enterprises is a scheme developed by the Government for the welfare of the farmers. The ambition of PMFME is to support the farmers to start a small business from the remaining crops.
WHAT IS THE PMFME SCHEME?
PMFME is one of the credit link subsidy schemes. In this scheme, you will get a loan as well as a subsidy. If you are taking a loan of 9 crores then you will get a 35% ( max of 3 crore) subsidy also.
Our Prime Minister Narendra Modi started this scheme to support the farmers and was started on June 2020. It was implemented for 5 years, which means up to 2025. The aim of this scheme is to provide 10 Crores of loans to the farmers for 5 years and 61,000 farmers already got the loan and also they started a unit.
WHICH CATEGORY CAN TAKE THIS LOAN?
PMFME has 2 units such as Micro Food Processing New units and Existing units.
If you are taking the loan for the first time under this scheme and starting your small Food Processing business is called a New unit. Existing units are defined as taking a loan under this scheme to improve your already existing outlet.
If your factory outlet annual turnover is above 1 crore and Below 5 crore then you are capable of taking the loan under this scheme. You can apply for this PMFME scheme through an online website easily.
HOW THE FOOD PROCESSING UNIT WORKS?
If you have your own land and you have all the types of fruits, vegetables, and seeds on your land. After supplying the required crops for the market, from the remaining crops you will prepare a small kind of food. To prepare this food you should need your own outlet. To open this Food Processing Unit I have taken a loan from this PMFME scheme.
Farmers with sell their crops to the market can also sell their food products. This Food Processing Unit is supported by the Central Government of India.
Loan subsidy is given by:
60% from the central government
40% from state government
FROM WHICH CATEGORY YOU CAN TAKE THE LOAN?
This loan is given to:
- Individuals: if anyone wants to start this food processing individually, they will get the support.
- Proprietorship
- FPO'S
- NGO'S
- Cooperatives
- SHGS (Self-help group)
Individuals:
Maximum loan- 90 lakhs
Subsidy - 31 lakhs
If your project cost is more than 10 crore then you will be provided security from both government and banks.
Groups:
Groups include Raitha Sanga, self-help groups, farmers produce organization (FPOS), and cooperative societies. The groups at least contain 10 to 50 members. These groups can also able to take the loans.
Maximum loan - 9 crores
Subsidy - 3 crores
PMFME SCHEME BENEFITS:
Self-help groups:
Per head - 40,000
If you have 10 members in a group then you will get up to 4 lakhs.
You will get a licence under this scheme.
You will also given training.
You will also get a certificate.
ELIGIBILITY:
Age - 18
Ownership - 51%
Education - 8th pass
HOW TO APPLY:
Go to the PMFME website and go through the KA Food Processing Society. Fill in the required documents and mention your category. You will definitely be able to apply for the loan here.
DISCLAIMER:
These informations are given for the purpose of helping the society. Here we have not used any kind of misinformation. Every information given here is true. And we are not responsible for the misuse of this information.
CONCLUSION:
The scheme is introduced for the purpose of helping the framers to save their crops from wastage. Every farmer can go through these schemes and start their own business. Our government has taken special care of the welfare of the farmers.
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PMFME SCHEME