GOVERNMENT SCHEME ON AGRIBUSINESS FINANCE

Scheme For Financing Agri-Business Projects With Venture Capital Assistance From Small Farmers' Agri-Business Consortium (SFAC) 

Nodal Agency: Small Farmers' Agri-business Consortium (SFAC)

Objectives:

•       To help promote investments in agri-business projects that are dependent on agriculture and allied activities and which will lead to increased rural employment, rural income and encourage farmers to diversify into high value crops. 

Eligibility:

Individuals/ producer groups /organizations which meet the following criteria:

•       Projects dependent upon agricultural or allied produce,

•       Projects provide direct access to producers as assured market,

•       Projects encourage farmers to diversify into high value crops to increase farm incomes,

•       Bank has accepted project for grant of term loans after satisfactory techno-commercial feasibility,

•       Project must be over Rs.50 lakh in size(  Rs. 25 lakh in case of NE States and other Hilly Areas).  

Venture Capital:

The amount of Venture Capital Assistance shall be the lowest of any of the following :- 

•       10 per cent of the project cost  assessed by the bank OR

•       26 per cent of project equity OR

•       Rs.75.00 lakh.