Pradhan Mantri Formalisation of Micro Food Processing Enterprises — 35% Credit-Linked Capital Subsidy (max ₹10 lakh) for existing food processing units. Bank-ready project report in 60 seconds.
No credit card · Auto-calculates 35% subsidy · CMA + FSSAI compliant format
Quick checklist — you need YES on all 4 points
Example: ₹20 lakh project upgrade for a pickle manufacturing unit
| Component | Amount | % of Project |
|---|---|---|
| Total Project Cost (technology upgrade) | ₹20,00,000 | 100% |
| PMFME Subsidy (35% CLCS, max ₹10L) | ₹7,00,000 | 35% |
| Bank Term Loan | ₹11,00,000 | 55% |
| Promoter Contribution (10%) | ₹2,00,000 | 10% |
Subsidy is released by government directly to bank after loan disbursement and verification of asset creation. The project report Cred generates auto-deducts the subsidy in Means of Finance.
Virtually all food processing activities are eligible
Items that go into your Means of Finance statement
| Item | Typical Range |
|---|---|
| Upgraded Machinery / Equipment | ₹3,00,000–₹15,00,000 |
| Food-grade containers / packaging line | ₹50,000–₹2,00,000 |
| Quality testing / lab equipment | ₹20,000–₹1,00,000 |
| FSSAI compliance upgradation | ₹10,000–₹50,000 |
| Building renovation / expansion | ₹50,000–₹3,00,000 |
| Working capital (raw material stock) | ₹1,00,000–₹5,00,000 |
| Pre-operative & contingency | ₹20,000–₹80,000 |
| Total Upgrade Project Cost | ₹5L – ₹28.6L |
PM Formalisation of Micro Food Processing Enterprises (PMFME) is a Central Government scheme by the Ministry of Food Processing Industries (MoFPI). It provides a 35% Credit-Linked Capital Subsidy up to ₹10 lakh per unit for existing micro food processing enterprises to upgrade technology, formalise operations, and get FSSAI licensing. The scheme runs until 2025-26.
Only EXISTING micro food processing enterprises are eligible — not new units. The applicant must be: (1) an individual proprietor, SHG member, FPO, or cooperative running a food processing unit, (2) processing any food product — pickles, spices, dairy, bakery, sweets, grains, oilseeds, etc., (3) categorised as 'micro enterprise' under MSME definition (investment in plant & machinery up to ₹1 crore). Udyam registration and FSSAI license/application are required.
Under PMFME, the loan amount varies: Individual units can get bank loans from ₹1 lakh to ₹25 lakh for technology upgradation. The government provides 35% Credit-Linked Capital Subsidy (CLCS) — so on a ₹10 lakh project, you get ₹3.5 lakh subsidy and need ₹6.5 lakh from own funds + bank loan. The maximum subsidy per unit is ₹10 lakh, which means the eligible project cost is up to ₹28.6 lakh.
Key documents: (1) Udyam Registration Certificate (micro enterprise), (2) FSSAI license or application proof, (3) Business existence proof — rent deed, utility bills, trade license, (4) Bank account statements (12 months), (5) Aadhaar & PAN of applicant, (6) Detailed Project Report showing technology upgradation plan, (7) Quotations for machinery/equipment, (8) Income/ITR (if available), (9) Caste certificate (for SC/ST preference). The project report must show how the upgrade will improve capacity, quality, and compliance.
Almost all food processing businesses qualify: Pickles & preserves, Spices & masala powder, Papad & fryums, Dairy products (paneer, ghee, curd), Bakery & biscuits, Sweets & confectionery (mithai, laddoo), Jaggery & khandsari, Flour mill & grain processing, Rice mill & dal mill, Oils & oilseed processing, Fruit & vegetable processing, Fish processing, Honey & bee products, Ready-to-eat/RTE products. The unit must be existing (not a new startup).
Under PMFME, banks typically charge 8.5%–10% per annum interest. Loan tenure is usually 5–7 years (60–84 months). Additionally, MoFPI provides 3% interest subvention through select banks. The DSCR in your project report must be ≥ 1.25 to satisfy bank requirements. Cred automatically generates PMFME-compliant financial projections with correct subsidy deduction from project cost.