PRADHAN MANTRI FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES (PMFME) SCHEME

The objectives of scheme are to build capability of microenterprises to enable –

• Increased access to credit by existing Micro Food Processing Entrepreneurs,
• Farmer Producers organisations (FPOs), Self Help Groups (SHGs)
• Integration with an organized supply chain by strengthening branding & Marketing.
• Support for transition of existing enterprises into a formal framework;
• 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.
• Increased access for the enterprises to professional and technical support.

Primary – Hypothecation of assets created out of bank’s finance. Such assets are to be covered under Insurance with hypothecation clause in favor of our Bank is mandatory.

Collateral –

(i) Immovable properties like NA Sites, Buildings etc. Gold ornaments, assignment of Life Insurance Policies and any other tangible securities which are chargeable as securities.

(ii) Co-obligant: having networth equal to or more than the proposed loan amount.

Minimum 2 persons Co-obligation should be obtained in which ;

• One or more people shall be from family members preferably with good net worth or having good repayment capacity.

• Third Parties co obligation is Mandatory by fulfilling the following criteria:

• Co-obligant having net worth equivalent or over and above the loan amount with certification of Chartered Accountant (CA).

OR

• Co-obligant should be an Income-Tax assessee for the last 3 years with minimum average income of Rs.5 lakh or more.

OR

• Co-obligant should be a Government servant or working in Public Sector Undertaking having a minimum monthly net take home salary of Rs.40000/- or more.

Note : Credit history of the Co-obligants should be “Satisfactory” i.e. CIBIL score of more than 750.