PMFME Micro Enterprise Subsidy
By Ministry of Food Processing Industries (MoFPI)
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Quick Answer
PMFME gives individual micro food processing units a 35% credit-linked capital subsidy, up to Rs 10 lakh.
- Funding amount
- Up to ₹10L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this subsidy
Clause 4.1 of the PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme guidelines provides individual micro food processing units a credit-linked capital subsidy at 35% of the eligible project cost, with a maximum ceiling of Rs 10 lakh per unit.
"Credit-linked" means the subsidy rides on a term loan: you take a bank loan for the project, and the government's share is credited against that loan rather than paid out as free-standing cash. It is the core benefit of the scheme for a single-owner unit — a bakery, oil mill, spice grinding unit, pickle or dairy micro-enterprise — looking to upgrade machinery or set up a new line.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Ministry of Food Processing Industries (MoFPI) is a Government of India ministry based at Panchasheel Bhavan, August Kranti Marg, New Delhi. It runs and funds schemes for the food-processing sector: subsidies and grants for micro units and producer groups, a…
Learn moreBenefits & Funding
- Amount
- Up to ₹10L
What You Get
You get 35% of your eligible project cost as a capital subsidy, capped at Rs 10 lakh for the unit. The subsidy is credit-linked, so it is released through the lending bank against a sanctioned term loan for the project — machinery, plant, and the eligible civil work that goes with it. In practice a Rs 28.6 lakh project is where the 35% share reaches the Rs 10 lakh ceiling; beyond that the extra cost is yours and the bank's.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are screened at district level with support from the District Resource Person, then appraised by the lending bank. Subsidy release follows loan sanction and disbursement, subject to the 35% and Rs 10 lakh limits.
Application Process
- 1
Register on the PMFME portal
Create an applicant account and enter unit details.
You - 2
- 3
- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What subsidy rate applies?
35% of the eligible project cost.
What is the maximum subsidy?
Rs 10 lakh per unit.
Do I need a bank loan?
Yes. The subsidy is credit-linked, so it is tied to a sanctioned term loan for the project.
Who can apply?
Individual micro food processing units under the PMFME scheme.
Can I get the subsidy in cash before starting?
No. It is a capital subsidy credited against the project loan, not an upfront cash grant.
Which ministry runs the scheme?
The Ministry of Food Processing Industries, Government of India, implemented through the states.
Sources
Data on this page is compiled from official program and provider references.
News
- PMFME Scheme Maharashtra Gets ₹116 Crore Subsidy Approvalurbanacres.in · 3 weeks ago
- Manipur CM distributes PMFME subsidies to 2,835 beneficiaries on PM Modi's birthdayindiasnews.net · last month
- Manipur CM distributes PMFME subsidies to 2,835 beneficiariesindiatodayne.in · last month
- Manipur CM distributes PMFME subsidies to 2,835 on PM Modi’s birthdaythenewsmill.com · last month
- Nagaland bags multiple awards under PMFME Schemenagalandpost.com · last month
- 2,906 Loans, ₹191.73 Crore Projects: Himachal Shines in PMFME Performancethenewshimachal.com · 2 months ago
Source: Google News aggregated
