PMFME SHG Member Unit Grant
By Ministry of Food Processing Industries (MoFPI)
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Quick Answer
PMFME gives an individual SHG member running a food processing unit a 35% credit-linked grant, up to Rs 10 lakh.
- Funding amount
- Up to ₹10L
- Funding type
- Grant
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this grant
Clause 5.3.3 of the PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme guidelines supports an individual SHG member operating as a single unit of food processing industry with a credit-linked grant at 35%, the maximum amount being Rs 10 lakh.
This is the route for an SHG member who has outgrown group-level seed capital and is setting up a unit in her own name. Like the scheme's other capital support, it is credit-linked: the grant is tied to a project financed through a bank loan, and it is released against that loan rather than paid as free-standing cash.
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.
Grant 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
- Fund type
- Grant
- Equity
- Equity-free
- Repayment
- Non-repayable
What You Get
An SHG member setting up her own food processing unit gets a credit-linked grant of 35%, with the maximum amount being Rs 10 lakh. The grant is non-repayable but tied to a sanctioned bank loan for the project, so the practical sequence is DPR, loan sanction, then grant credit against that loan. It puts an individual SHG member on the same terms as any other individual micro food processing unit under the scheme.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The district team screens the application with the District Resource Person, the lending bank appraises the project, and the grant is released post-sanction within the 35% and Rs 10 lakh limits.
Application Process
- 1
Register on the PMFME portal
Apply as an individual SHG member setting up a food processing unit.
You - 2
- 3
- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
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.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the grant rate?
35%, with the maximum amount being Rs 10 lakh.
Who is this for?
An individual SHG member operating as a single unit of food processing industry.
How is it different from SHG seed capital?
Seed capital is Rs 40,000 per member for working capital and small tools; this is a credit-linked grant of 35% up to Rs 10 lakh for setting up a unit.
Is a bank loan needed?
Yes. The support is credit-linked, so it rides on a term loan sanctioned for the project.
Is the grant repayable?
No. It is a grant, though it is released against the project loan account.
Sources
Data on this page is compiled from official program and provider references.
News
- PMFME scheme achieves two-lakh unit target; likely to be extended beyond September 30 deadlinenewindianexpress.com · 2 months ago
- Centre Releases Rs 34.71 Crore for Jammu Kashmir Under PMFME Schemekashmirlife.net · 2 months ago
Source: Google News aggregated
