The full form of PMFME is the Prime Minister Formalisation of Micro Food Processing Enterprises Scheme. This scheme was laid down by our honourable Prime Minister Narender Modi. This Scheme is controlled by the Union Bank of India. This scheme was launched on 29th June 2020 by the ministry of food processing under Atma Nirbhar Bharat Abhiyan. The aim of this scheme is to outgrow the food sector. Thereby helping the people who already have business in this industry to grow, help Self Help Groups and give loans to the people who want to open a new start up for the food industry, thus enabling the unemployed to earn their livelihood. The government has sanctioned Rs 35,000 crore amount to be spent on the start ups and the people who want to expand their business.
Advantages of PMFME Loan
- No collateral security is to be submitted to the bank up to Rs 10 lakhs.
- Low interest is charged by the banks i.e. 3%. And on top of that 35% subsidy is given by the government to these people who take loans up to Rs 10 lakhs.
- If the customer establishes a big business, a subsidy up to three crores can also be given to the customer depending on the area, class he belongs to.
- The banks have also launched training programmes to the people who are taking loans from them under this scheme, so that they can easily set up the business.
- Banks have also set up call centres for them, to make it easy for them to set up their business units.
- The Loan is given by the bank for over 5 years, and as the bank knows the people won’t be able to pay the EMI’s as it is a startup they charge low EMI from the customers.
With the help of this scheme the government also aim to provide the following benefits
- Help the industry to build a brand, as the bank gives them financial assistance it helps the company to advertise and promote their products.
- The banks have a specialised department which guides the business owners on how to get customers from the market.
- The banks provide the Self-Help Group Rs 40,000 for purchasing seeds.
- The bank also encourages the small businessman to adopt one district and one product approach, so that small business also gets the chance to earn.
Eligibility criteria in PMFME Loan
- The applicant should be of age 18 years or above.
- Only one person from the family can apply for this loan.
- The applicant should have studied up to class 8
- One should be a citizen of India.
- If one is running a food business beforehand, and now he wants to expand his business he should inform the bank.
How to apply for this scheme?
Step 1: To apply for this scheme visit on the website https://pmfme.mofpi.gov.in/ .On this website the applicants can get all the information regarding how many people have applied for the loan till date, how much loan is sanctioned to them, how much loan is disbursed till now and also submitted ODOP applications.
Step 2: Click on Login on the website, then new registration login.
Step 3: A new form will appear, Fill in the required details in the form like, whether the person wants to take individual loan, group loan or common loan and then fill in his name and the information about the business that he is going to set up, like bank details, machinery name, Quantitation details, total number of experience one have in this field, Registration number and registration details.
Step 4: A new window will open where the customer has to upload the documents like
- Aadhar card
- Pan card
- Rent or lease agreement of the place where business will run.
- Ownership proof
- Photo
- Memorandum and Article of Association.
- Bank statement of last three months
Voluntary supporting documents like
- Pollution Certificate
- GST registration certificate
- Board of Directors bio data
- Marketing Licence
- And many others
Then submit and download the form. Now take this form to the bank and submit.
Step 5: The bank, after verification of all the documents, will sanction the loan to the customer after a week.
The following banks sanction the PMFME Loan
- State bank of India
- Union Bank of India
- Punjab National Bank
- Bank of Baroda
- And many other private financial institutions
In addition to giving loans to these people, banks are also helping the customers by giving training in establishing their own business. The banks have opened a separate cell ie of telesales executive which help these customers in getting pollution certificates.
If one wants to gain information about this scheme, he can directly visit the department or CSC centres or visit the official website https://pmfme.mofpi.gov.in/ or call on the numbers mentioned on the websites. This scheme till now has benefited one lakh people.
In the years to come the food processing sector will be on boom. It will be a revolution in the Indian economy.
