Financial Assistance Schemes by MoFPI
Initiative by the ministry of food processing industries (MoFPI)
The MoFPI, as part of its mission, has started a scheme for technology upgradation, establishment and modernisation of food processing industries.
Under the scheme financial assistance of 25% of the cost of plant and machinery and technical civil works subject to Rs 50 lakh in general areas and 33% subject to Rs 75 lakh for difficult areas (NE region, J&K, HP, Uttarakhand, A&N Islands, Lakshadweep and ITDP (Integrated Tribal Development Programme) areas is provided for technology up-gradation, modernisation of food processing industries in sectors such fruit and vegetables, cereals, meat, poultry, oilseed products, rice milling, flour milling, pulse processing, flavors and colours, oleoresins, spices, coconut, mushrooms, hops etc.
It is thus perceived that the Foodpro 2011, event which is themed on “Emerging Technologies” this year will address issues related to technological gaps and constraints and deliver appropriate technological interventions across value chain. The conference to be held alongside the expo will provide private entrepreneurs with technical information for value addition, product development, information on new technology, best practices, and an opportunity to get introduced to valued food industry knowledge and networks.
NABARD (warehousing) 2011-12 Scheme
Invitation to avail loan assistance for setting up warehousing infrastructure
under NABARD (warehousing) 2011-12 Scheme
National Bank for Agriculture and Rural Development (NABARD) invites request letters from private sector
agencies for availing loan assistance from Banks / NABARD to create / expand warehousing infrastructure for
foodgrains and for other agricultural commodities during the financial year [2011-12] under NABARD
(warehousing) 2011-12 scheme.
For more details, please visit our website http://www.nabard.org/
with all necessary information mentioned in such details should reach us by 05 December 2011, 4 PM. NABARD
reserves the right to reject any or all request letters and / or withdraw the NABARD (warehousing) 2011-12
scheme without assigning any reason.
Credit Guarantee Fund Scheme for MICRO AND SMALL ENTERPRISES
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The scheme was formally launched on August 30, 2000 and is operational with effect from 1st January 2000. The corpus of CGTMSE is being contributed by the Government and SIDBI in the ratio of 4:1 respectively and has contributed Rs.1906.55 crore to the corpus of the Trust up to March 31,2010. As announced in the Package for MSEs, the corpus is to be raised to Rs.2500 crore by the end of 11th Plan.
OFFICE OF DEVELOPMENT COMMISSIONER SCHEMES
Office of Development Commissioner operates a number of schemes for the MSME sector. At a glance these are:-
1. National Manufacturing Competitiveness Programme (NMCP) Schemes Under XI Plan - The Government has announced formulation of National Competitiveness Programme in 2005 with an objective to support the Small and Medium Enterprises (SMEs) in their endeavor to become competitive and adjust the competitive pressure caused by liberalization and moderation of tariff rates.
2. Micro & Small Enterprises Cluster Development Programme (MSE-CDP) - DC(MSME) launched MSE-CDP for holistic development of selected MSEs clusters through value chain and supply chain management on co-operative basis. read more...
3. Scheme for Capacity Building - Scheme for capacity building, strengthening of database and advocacy by industry/ enterprise associations, as envisaged in the promotional package for Micro and Small Enterprises (MSEs). read more...
4. Credit Linked Capital Subsidy Scheme for Technology Upgradation - The Scheme was launched in October, 2000 and revised w.e.f. 29.09.2005. The revised scheme aims at facilitating Technology Upgradation of Micro and Small Enterprises by providing 15% capital subsidy (12% prior to 2005) on institutional finance availed by them for induction of well established and improved technology in approved sub-sectors/products. The admissible capital subsidy under the revised scheme is calculated with reference to purchase price of Plant and Machinery. Maximum limit of eligible loan for calculation of subsidy under the revised scheme is also been raised Rs. 40 lakhs to Rs. 100 lakh w.e.f. 29-09.2005. read more...
6. ISO 9000/ISO 14001 Certification Reimbursement Scheme - Incentive Scheme of Reimbursement of expenses for acquiring Quality Management System (QMS) ISO 9000 certification/environment management (
- For individual SISIs/Ancillary/tiny/SSSBE units read more...
7. MSME MDA - The scheme offers funding upto 75% in respect of to and fro air fare for participation by MSME Entrepreneurs in overseas fairs/trade delegations. The scheme also provide for funding for producing publicity material (upto 25% of costs) Sector specific studies (upto Rs. 2 lakhs) and for contesting anti-dumping cases (50% upto Rs. 1 lakh) - for individual MSMEs & Associations. read more...
Participation in the International Exhibitions/ Fairs - For registered Small & Micro manufacturing enterprises with DI/DIC.
Financial Assistance for using Global Standards (GS1) in Barcoding - Recognized the importance of barcoding and avail financial assistance through Office of DC(MSME). read more...
Purchase and Price Preference Policy - This is administered through the Single Point Registration Scheme of NSIC. Under this, 358 items are reserved for exclusive purchase from MSME by Central Government. Other facilities include tender documents free of cost, exemption from earnest money and security deposit and 15% price preference in Central Government purchases - for individual MSMEs
8. Mini Tool Rooms - Assistance upto 90% or Rs.9.00 crores, whichever is less for setting up new Mini Tool Rooms. For upgradation of existing Tool Rooms, assistance is 75% or Rs.7.5 crores - for State Governments. read more...
9.Assistance to Entrepreneurship Development Institutes - For strengthening training infrastructure in EDIs, assistance upto 50% or Rs. 50 lakhs whichever is less - for State Governments. read more...
11. Scheme of National Award - The Micro, Small &Medium Enterprises (MSMEs) in
12. Scheme to Support 5 Selected University / Colleges to Run 1200 Entrepreneurship Clubs per Annum - A package for the promotion of Micro and Small Enterprises, based on the Circular No.2(6)/2006-MSME Policy dated the 7th November,2006 has been approved by the Cabinet Committee for Economic Affairs(C.C.E.A.).
Government Funding and Schemes
An entrepreneur requires a continuous flow of funds not only for setting up of his/ her business, but also for successful operation as well as regular upgradation/ modernisation of the industrial unit. To meet this requirement, the Government (both at the Central and State level) has been undertaking several steps like setting up of banks and financial institutions; formulating various policies and schemes, etc. All such measures are specifically focussed towards the promotion and development of small and medium enterprises.
The public sector banks are the major source of financial assistance to the industrial sector. They extend credit support to the firms in the form of loans, advances, discounting bills, project financing, term loans, export finance, etc. Some of the major examples of such banks are:-
At the State level, various State Financial Corporations (SFCs) have been set up by the respective State Governments for providing financial assistance to the industrial units. For this purpose, these institutions have brought out several funds and schemes, from time to time. There are 18 State Financial Corporations (SFCs) in the country. For example:-
The fund based schemes include:-
The non-fund based schemes include:-
Banks Credit In Agricultural Sector
Nationalisation of banks was a major step for channelising credit to various sectors of economy of which agriculture is a major sector. A dynamic and growing agricultural sector needs adequate finance through banks to accelerate the overall growth. The government has directed the banks to double their flow of credit to agriculture sector in three years commencing from the year 2004-05. With the government’s keen interest and special budget allocation for agricultural in the 11th five-year plan, it is now in the hands of the farmer to reap the benefit of the schemes offered by the banks. Following is a list of offers of credit from some of the nationalised banks.
Allahabad Bank ()
- Kisan Shakti Yojana Scheme
- Farmers are free to utilise the loan at their own choice
- No margin is required
- 50% of the loan amount may be utilized for personal/domestic purposes including repayment of debt to money lenders
Andhra Bank ( )
- Andhra Bank Kisan Green card
- Coverage under Personal Accident Insurance Scheme (PAIS)
Bank Of Baroda ( )
- Purchase of second hand tractors scheme for dry-land farming
- Working capital needs to dealers/distributors/traders of agrl. Inputs/livestock inputs
- Hiring agrl. machinery
- Development of horticulture
- Working capital for units engaged in dairy, piggery, poultry, sericulture etc.
- Financing Scheduled Caste/Scheduled Tribes for purchase of farm implements, tools, pair of bullocks, creation of irrigation facilities.
Bank of India ()
- Star Bumiheen Kisan Card – for share croppers, tenant farmers and oral lessees
- Kisan Samadhan card – Kisan credit card for crop production and other related investments
- BOI Shtabti Krishi Vikas Card – electronic card for anywhere anytime banking for farmers
- Funding for contract farming in hybrid seed production, cotton industry, sugarcane industry etc.
- Special schemes for SHGs and to empower women folk
- Star Swarojkar Prashikshan Sansthan (SSPS), a new initiative to provide entrepreneurial training tofarmers
- Crop loans : Upto Rs. 3 lakhs at the rate of 7% per annum
- Collateral security: loans up to Rs. 50, 000, no collateral required, but for above Rs. 50, 000, RBI directives are followed.
Dena Bank ()
- Dena bank is most active in Gujarat, Maharashtra, Chhattisgarh and UT of Dadra and Nagar haveli.
- Dena Kisan Gold Credit Card Scheme
- Maximum credit limit up to Rs. 10 lakh
- Provision of 10% towards domestic expenses including education of children
- Longer repayment period up to 9 years
- Loan is available for any type of investment in farm such as farm implements, tractors, sprinklers/drip irrigation systems, oil engine, electric pump sets, etc.
- Short term crop loan up to Rs. 3 lakhs @ 7%
- Disposal of loans within 15 days of application
- No collateral up to Rs. 50, 000 for farm loans and up to Rs. 5 lakhs for setting up agri-clinic and agri-business units.
Indian Bank ()
- Production Credit : Crop loans, Tie-up with sugar mills & Kisan Credit Card Scheme, Crop loans to tenant farmers, share croppers and oral lessees
- Agricultural Investment Credit : Land development, minor irrigation, micro irrigation, farm mechanization, plantation and horticulture
- Agricultural Structured Loans : Kisan Bike, Agri- Vendors Bike, Agri. Clinics and Agri Business Centres
- Group Lending for Agricultural Development: Loan to joint liability groups / Self Help Groups
- New Agricultural Avenues: Contract farming, Organic farming, rural godowns, cold storage, medicinal and aromatic plants, bio-fuel crops etc..
Oriental Bank of Commerce ()
- Oriental green Card (OGC) Scheme
- Composite Credit Scheme for Agricultural lending
- Setting up of cold storages/godowns
- Financing commission agents
Punjab National Bank ()
- PNB Kisan Sampuranrin Yojana
- PNB Kisan Icha Purti Yojana
- Growing potatoes/fruits against pledge of cold storage receipts
- Self propelled Combine Harvestors
- Development of Forestry nursery
- Wasteland development
- Mushroom/Prawn culture and mushroom spawn production
- Purchase nad maintenance of milch animals
- Dairy Vikas Card Scheme
- Schemes for pisciculture, piggery, bee-keeping etc.
State Bank of Hyderabad ()
- Crop loans and Agrl. Gold loans
- Marketing of agricultural produce
- Cold storage/private warehouse
- Minor irrigation & Dug well scheme / development of old well scheme
- Land development finance
- Purchase of tractor, power tiller and implements
- Purchase of Agrl. Land/fallow/wastelands
- Vehicle loans for farmers
- Drip irrigation and sprinklers
- Self Help Group
- Agri Clinics and Agri Business Centres
- Yuva Krishi Plus Scheme
State Bank of India ()
- Crop loan Scheme (ACC)
- Storing produce in their own premises and renewal of loans for next season
- Kisan Credit Card Scheme
- Land Development Schemes
- Minor Irrigation Schemes
- Purchase of combine Harvestor
- Kisan Gold Card Scheme
- Krishi Plus Scheme- for customized hiring of tractor to rural youth
- Arthias Plus Scheme – for Commission agents
- Broiler Plus Scheme – Broiler farming
- Lead Bank Scheme
Syndicate Bank ()
- Syndicate Kisan Credit card (SKCC)
- Solar Water Heater Scheme
- Agri-clinics and Agri-business centres
Vijaya Bank ()
- Loans to Self Help groups
- Vijaya Kisan Card
- Vijaya Planters Card
- KVIC Margin Money Scheme for Artisans and Village Industries
Links for other Banks
- National Bank for Agriculture and Rural Development (NABARD) ( )
- Bank of Rajasthan ()
- Canara Bank ()
- Central bank of India ()
- Corporation Bank ()
- Indian Bank ()
- Indian Overseas Bank ()
- Industrial Development bank of India ()
- Jammu & Kashmir Bank Ltd ()
- State Bank of Mysore ()
- Union Bank of India ()
- United Bank of India ()
- Axis Bank ()
Twelve Tips for Getting Your Bank Loan
Finding the money needed to start a new business is almost always one of the most difficult obstacles new owners face. The most likely (and easiest) sources of capital are your families, friends and own savings. However, you should not overlook institutional sources as well.
Without a previous track record in business, securing a bank loan may be difficult. Banks cite risk factors and increasing costs of servicing small accounts as the primary reasons for minimizing their exposure to small businesses. Still, it can be done. Here are the steps that you should take to improve your chances of getting that much-needed bank loan:
1. Keep in mind that to stay in business banks need to make loans. Do not be afraid to ask for one. That is what the loan officer wants you to do. To increase your chances of , look for a bank that is familiar with your industry and who has done business with companies like yours. Seek out banks that are active in small business financing. Some banks lend on a conventional basis ( without government support), while some banks participate in government programs (in the form of government participations involving direct government funds or loan guarantees). However, be aware that banks often demand stiff collateral requirements for start-ups.
2. As an entrepreneur, make sure that you are thoroughly prepared when you go to your banker's office to request a loan. You need to show your bankers that a loan to you is a low-risk proposition. Have on hand a completed loan application, copies of cash flow and financial statement projections covering at least three years, and your cover letter.
3. Learn to anticipate every question that he or she has. Remember, the combination of information and preparation is the most powerful negotiating tool in the world. A confident and thoroughly prepared borrower is four times more likely to have his or her loan approved than a borrower who does not know the answer to some of the basic questions a banker asks. To show the extent of your preparedness, your business plan should also include answers to your banker's questions. These questions normally are:
4. Do not take an apologetic and negative attitude. Keep your negativity in check. Present yourself as an entrepreneur who can and will repay the loan. Boost your image by providing your loan officer with any promotional materials about your business, such as brochures, ads, articles, press releases, etc.
5. Dress in a professional manner for the interview. This is a business transaction, so treat it as such.
6. Do not stretch the truth in your loan application. Broad, unsubstantiated statements should be avoided. The lender can easily check many of the facts on your application. If you cannot support statements with solid data, then don't make them. Do your homework and spend time doing research to be able to support everything you say, including every single number in your projections. It is best to keep projections, assets lists and collateral statements on the conservative side.
7. Be sure all your documents are neat, legible and organized in a cohesive and attractive manner. Type all your loan documents. Handwritten documents look unprofessional. Don't forget to include a cover letter.
8. Do not push the loan officer for a decision. Doing so might result in a rejection. Your banker cannot make a decision until all your documentation is complete. To ensure a speedy decision, make sure that your application is complete.
9. Be confident. An attitude of confidence enhances your chance of getting the loan. Show that you can make a success out of the money that the bank will lend to you. Visualize in your mind the positive results of your bank application.
10. Keep trying one lender after another until you get your loan. To improve your position as you change bankers and banks, the best way is to ask for a referral from a successful entrepreneur. Before you decide to approach a bank directly, find an associate, friend or acquaintance that is in good standing with the bank to give you a good referral. Bankers tend to deal more favorably those who were referred to them by their best customers.
11. Failure to discuss risk in your application. You must remember one thing: there is no business without risk. If you do not discuss risk, the bankers will assume that you haven't thought about risk. Let's face it - try as we might, we cannot plan for everything, for every contingency, for every turn of events. Bankers would want to know if you have planned for the major risks and how you intend to manage it.
Then, there is also the risk of too much success. The demand for your products or service may exceed well beyond your expectations, and they would want to know how you intend to handle success.
12. Remember that the first loan is usually the hardest to get. Bankers prefer to lend money to borrowers who have borrowed at least once and have paid back at least one loan on time. They are not venture capitalists that make high-risk loans regardless of the profit prospects of your business. Bankers prefer to lend to low-risk, low profit ventures than to high risk businesses or those with no record of accomplishment.