VENTURE CAPITAL ASSISTANCE SCHEME

Ministry of agriculture and farmers welfare- Scheme talks about financial support provided by SFAC in the form of an interest free loan to be eligible for projects to meet gap in the capital requirement for execution of the project.

Privileges of the scheme

• To set-up agribusiness projects investment through financial participation got to agricultural entrepreneurs.
• Offers financial support for arranging of bankable detailed project reports through project development facility.

Who are eligible to apply the scheme

1. Producer groups
2. Self help groups
3. Farmers
4. Partnership or proprietary firms
5. Companies
6. Agriculture graduates individually or in groups for setting up agribusiness projects.
7. Agripreneurs
8. Units in agri-export zones

How to apply it

Application is required to be filed online only as there is no offline process. Below are some of the key points to be kept in mind before applying for the same. Conditions to be verified

• Firstly, promoter’s request letter conveyed through original letter head of firm or company to the managing director SFAC at New Delhi.
• Approval letter of sanctioning authority conveyed to suggesting branch.
• Banks gave approval on appraisal or process note having relevant signature of permissible authority with terms of approval of term loan.
• Latest statement of account of term loan and cash credit (if approved).
• Certificate of equity: CA certificate required in case of Partnership or Proprietorship firms and Form 2 i.e., PAS 3, Form 5 i.e., SH 7 and other documents instead of Form 23 filed with ROC.
• Farmer’s record or backward linkage correctly backed by agreement.
• Promoter’s affidavit mentioning that they have not taken VCA earlier.
• Unsecured loans lifted by the promoters (if any,). CA Certificate to be placed within.
• A copy of earlier report of bank's inspection.
• Bank’s attestation that they will not discharge primary and collateral security without SFAC approval.
• Reason for margin on working capital taken in the project cost.

List of documents to be furnished together with the online form

Same as mentioned in above headline of “How to apply it” under which following checklist to be prepared. They were the documents required to be furnished.

Note- All scanned copies of each and every document is to be taken out and in hand while applying online for the same in the next step, except 3^rd point document. Hard copies to be submitted separately to SFAC (Small farmer’s agribusiness consortium) regd. Office at New Delhi address.

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