The Small Farmer's Agri-Business Consortium (SFAC) has developed the Venture Capital Assistance (VCA) Scheme to help farmers and entrepreneurs build their businesses. This scheme aims to help farmers fulfil their capital requirements for project implementation by providing a term loan to qualifying projects. We'll take a closer look at the Venture Capital Assistance Scheme in this article.
The goal of the venture capital aid programme is as follows:
The following are the characteristics of the venture capital support programme:
All money will be provided by SFAC, the Small Farmers Agri Business Consortium, which operates at both the state and national levels. The Small Farmers Agribusiness Consortium (SFAC) is a non-profit organisation supported by the Ministry of Agriculture, Cooperation, and Farmers' Welfare of the Indian government.
The following individuals will be eligible for assistance under the venture capital Assistance scheme:
Nationalized banks, SBI & its Subsidiaries, IDBI, SIDBI, NABARD, NCDC, RRBs & other State Financial Corporations are among the banks/financial institutions regulated by the Reserve Bank of India, where the Central or State Government owns more than 50%.
The size of the loan for venture capital support will be determined by the project cost. Here you'll find the minimum and maximum loan amounts.
The amount of Venture Capital Assistance will be determined by the project cost and will be the least expensive of the following:
INR 50.00 lakhs is 26 percent of the promoter's equity.
The amount of venture capital will be the lowest of the following for projects located in the NorthEastern Region, Hilly States (Uttarakhand, Himachal Pradesh, Jammu & Kashmir), and in all cases in any region of the country when the initiative is promoted by a registered Farmer Producers Organization:
INR 50.00 lakhs, or 40% of the promoter's stake.
To apply for the Venture Capital Scheme, go to the SFAC, Government of India's official website. All they have to do now is fill out the internet form after meeting a few basic paperwork criteria. The bank or financial institution is obligated to approve the loan amount following the proper submission of the application form. If all of the relevant conditions are met, the bank will submit its authorisation to the SFAC. After that, the SFAC will determine the loan amount for qualified projects
The following documents must be attached to your application form:
The case is usually processed in 60-90 days.
Appropriate for new agriculture start-ups.
Because it's an interest-free loan, the cost of capital is lower.