Venture Capital Assistance Scheme:Interest free loan scheme to set up agriculture related project

Hello Friends

Welcome to my blog “ Banker For You’

Friends, if you are an agriculturist or wish to start your career in the agriculture sector then read this article. I came here with a government scheme for agriculturists to provide interest free loans to meet the shortfall in capital requirement for implementation of the project.

 

Yes, The name of the Scheme is “ Venture Capital Assistance Scheme” promoted by the Ministry of Agriculture and Farmer Welfare.

What is a Venture Capital Assistance Scheme?

Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC ( Small Farmers’ Agri-Business Consortium)to qualifying projects to meet shortfall in the capital requirement for implementation of the project.

What are the benefits of the Venture Capital Assistance Scheme?

• Help in assisting  agripreneurs to make investments in setting up agribusiness projects through financial participation

• Provides financial support for preparation of bankable Detailed Project Reports (DPRs) through Project Development Facility (PDF).

Who can apply for this scheme?

• Farmers

•  Producer Groups

• Partnership/Proprietary Firms

• Self Help Groups

• Companies

• Agripreneurs

• units in agriexport zones

•  Agriculture graduates Individually or in groups for setting up agribusiness projects.

Where and how to apply for the Venture Capital Assistance Scheme?

One can only apply online, offline application forms will not be accepted. The application link is as below: http://sfacindia.com/VCAapplicationform.aspx

Please keep ready the following documents before applying for the scheme.

1	Promoter’s request letter addressed to the Managing Director SFAC, New Delhi on original letterhead of firm/company
2	Sanction letter of Sanctioning authority addressed to recommending branch
3	Bank’s approved Appraisal/Process note bearing signature of sanctioning authority with terms of sanction of term loan
4	Up-to-date statement of account of Term loan and Cash Credit (if sanctioned)
5	Equity Certificate: a)C.A. certificate in case of Partnership or Proprietorship firms. b)Form-2(PAS-3), FORM-5(SH-7) and other documents in lieu of FORM-23 filed with ROC for
6	Farmer’s list/backward linkage duly supported by agreement
7	Affidavit of promoters that they have not availed VCA in the past
8	Unsecured loans raised by the promoters (If any). CA Certificate to be enclosed
9	Copy of last Bank's inspection report
10	Bank’s confirmation that they will not release primary & collateral security without SFAC consent
11	Justification for margin on working capital taken in the project cost

List of Enclosures to be submitted along with the form

Sno.	Enclosures
1	Promoter’s request letter addressed to the Managing Director SFAC, New Delhi on original letterhead of firm/company
2	Sanction letter of Sanctioning authority addressed to recommending branch
3	Bank’s approved Appraisal/Process note bearing signature of sanctioning authority with terms of sanction of term loan
4	Up-to-date statement of account of Term loan and Cash Credit (if sanctioned)
5	Equity Certificate: a)C.A. certificate in case of Partnership or Proprietorship firms. b)Form-2(PAS-3), FORM-5(SH-7) and other documents in lieu of FORM-23 filed with ROC for Company
6	Farmer’s list/backward linkage duly supported by agreement
7	Affidavit of promoters that they have not availed VCA in the past
8	Unsecured loans raised by the promoters (If any). CA Certificate to be enclosed
9	Copy of last Bank's inspection report
10	Bank’s confirmation that they will not release primary & collateral security without SFAC consent
11	Justification for margin on working capital taken in the project cost

Please keep scanned copies of the above  documents ready.

The quantum of SFAC Venture Capital Assistance will depend on the project cost and will be the lowest of the following:

• 26% of the promoter’s equity

• 50.00 lakhs.

Provided that for projects located in North-Eastern Region, Hilly States (Uttarakhand, Himachal Pradesh, Jammu & Kashmir) and in all cases in any part of the country where the project is promoted by a registered Farmer Producers Organisation, the quantum of venture capital will be the lowest of the following:

• 40% of the promoter’s equity

• 50.00 lakhs.

The cost of the proposed agribusiness project would have to be `15 lakh & above, subject to a maximum of `500 lakh. However, projects valuing `10 lakh and above, proposed to be located in backward districts as notified by Planning Commission, hilly and North-Eastern States could also be considered for PDF and VCA. 

For detailed guidelines please visit http://sfacindia.com/UploadFile/Statistics/SFAC%20VCA%20Guideline.pdf.