Small Farmers Agribusiness Consortium (SFAC) is providing an interest-free loan to farmers or agripreneurs to help them financially. The Ministry of Agriculture of India has started a new scheme in which called the ‘Venture Capital Scheme’.It is financial support in the form of an interest-free loan provided by SFAC to qualifying projects to meet the shortfall in the capital requirement for the implementation of the project.
Objective of this Scheme
- Promote agricultural entrepreneurship in India
- Catalyse private investment in setting up of agribusiness projects
- Strengthen backward linkages of agribusiness projects
- Assist farmers, producer groups, entrepreneurs etc.
- Arrange training and visits of agri-preneurs
- To augment and strengthen existing State and Central SFAC
Ministry of Agriculture of India Scheme Eligibility
If one has to be the part of this scheme then he/she has to lie in the eligibility criteria-
- Producer Groups
- Partnership/Proprietary Firms
- Self Help Groups
- units in agriexport zones
- Agriculture graduates Individually or in groups for setting up agribusiness projects.
Benefits of this Scheme
- It help in assisting the agripreneurs to make investments in setting up agribusiness projects through financial participation.
- Also provides financial support for the preparation of bankable Detailed Project Reports (DPRs) through Project Development Facility (PDF).
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Ministry of Agriculture in India Scheme Application Procedure
If one wants to apply for this scheme the application procedure is online by filling up the form, no offline applications will be accepted.
Documents Required before filling the application form
- Must have promoter’s request letter addressed to the Managing Director of SFAC, New Delhi on original letterhead of firm/company.
- Mendatory to have Sanction letter of Sanctioning authority addressed to recommending branch.
- Bank’s approved Appraisal/Process note bearing signature of sanctioning authority with terms of sanction of term loan.
- Up-to-date statement of account of Term loan and Cash Credit (if sanctioned).
- Equity Certificate:
- a)C.A. certificate in case of Partnership or Proprietorship firms.
- b)Form-2(PAS-3), FORM-5(SH-7) and other documents in lieu of FORM-23 filed with ROC.
- Required Farmer’s list/backward linkage duly supported by agreement.
- Affidavit of promoters that they have not availed VCA in the past.
- Unsecured loans raised by the promoters (If any). CA Certificate to be enclosed.
- Copy of last Bank’s inspection report.
- Bank’s confirmation that they will not release primary & collateral security without SFAC consent.
- Justification for margin on working capital taken in the project cost.
When you have all the above documents the start filling up the Application Form and when you submit the form, you have to submit all the documents mentioned above along with the application form.
Note: Make sure that u have extra photo copy of all the documents rerquired along with application form and also take the print out of application form after submittion.