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PMFME Scheme — 35% Credit-Linked Subsidy up to ₹10 Lakh

Turn your micro or small food business into a formal, funded, bankable enterprise.

PMFME micro food processing unit
Overview

About the scheme

The PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme is the flagship Government of India programme for micro and small food businesses, with an outlay of ₹10,000 crore. It helps unorganised units become formal, credit-linked and competitive.

It supports individual micro enterprises as well as FPOs, SHGs and cooperatives, and follows the One District One Product (ODOP) approach.

Quick facts

  • MinistryMoFPI (Govt. of India)
  • Capital subsidy35% of eligible project cost
  • Maximum grant₹10 lakh per unit
  • SHG seed capital₹40,000 per member
  • BeneficiariesMicro units, FPOs, SHGs, cooperatives
  • ApproachOne District One Product (ODOP)
Subsidy & Financial Assistance

How much you can get

PMFME provides a 35% credit-linked capital subsidy on the eligible project cost, capped at ₹10 lakh per unit. SHG members additionally receive seed capital of ₹40,000 each, and grants are available for common infrastructure, branding and marketing of groups. Being credit-linked, a bank term loan funds the balance.

Eligible Components

What the scheme funds

  • New micro units or upgradation of existing units
  • Common infrastructure for FPOs, SHGs, cooperatives
  • Branding & marketing support for groups
  • Capacity building & handholding via District Resource Persons
Who Is Eligible

Eligibility

  • Existing individual micro units (proprietors & partnerships)
  • FPOs, SHGs and producer cooperatives
  • Applicant aged 18+ owning/running the enterprise
  • Owner's contribution + bank loan (credit-linked)
Documents Required

What you'll need

  • Detailed Project Report (DPR)
  • Udyam registration
  • FSSAI licence / registration
  • GST (where applicable)
  • Bank loan sanction
  • KYC & land ownership / lease
How We Help

End-to-end, done for you

From eligibility mapping to grant release, we manage the whole journey — bankable DPR, bank tie-up, application, approvals and claims. With 125+ projects across 20+ states, we know what gets sanctioned.

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Application Process

How to apply — step by step

Assess & select

Confirm eligibility and align to your district's ODOP.

Prepare DPR

Bankable DPR and financial model.

Apply online

File on the PMFME portal via the State Nodal Agency.

Bank sanction

Coordinate loan appraisal & sanction.

Disbursement

Follow subsidy approval to release.

FAQs

PMFME Scheme — questions

How much subsidy does PMFME give?

A 35% credit-linked capital subsidy on eligible project cost, up to ₹10 lakh per unit.

Who can apply for PMFME?

Individual micro units, FPOs, SHGs and cooperatives; SHG members also get ₹40,000 seed capital each.

Is a bank loan compulsory?

Yes — the subsidy is credit-linked, so a bank term loan is required.

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