What is PMEGP and who is eligible?

PMEGP (Prime Minister's Employment Generation Programme) provides subsidies of 15%–35% for new manufacturing and service units. Any Indian citizen above 18 years with a business plan can apply. NaavBharat provides end-to-end PMEGP application support.

What is the CGTMSE collateral requirement?

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) provides collateral-free credit guarantees up to ₹5 Crore for MSMEs with Udyam registration. No collateral or third-party guarantee is required.

What are the Mudra loan limits?

Mudra loans are offered in four tiers: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 Lakh), Tarun (₹5 Lakh to ₹10 Lakh), and Tarun Plus (₹10 Lakh to ₹20 Lakh). All tiers are collateral-free.

How does NaavBharat charge for its services?

NaavBharat operates on a success-linked advisory model with zero upfront fees. We charge only upon successful scheme disbursement. The initial eligibility consultation is completely free.

How long does PMEGP application processing take?

With complete documentation, PMEGP applications typically take 45–90 days from submission to sanction. NaavBharat's 98.6% approval rate is achieved through thorough pre-submission document review and bank coordination.

What documents are needed for CGTMSE?

CGTMSE requires Udyam Registration Certificate, business plan or project report, last 2 years ITR (if applicable), bank statements, KYC documents, and the loan application from a member lending institution (MLI).

Does NaavBharat help with GST registration and Udyam certification?

Yes. NaavBharat provides complete Certification services including GST registration, Udyam/MSME certification, FSSAI license, IEC (Import Export Code), trademark registration, and company incorporation for Pvt Ltd and LLP structures.

Who is eligible for PMFME scheme?

Existing micro food processing enterprises — individual proprietors, SHGs, FPOs, co-operatives — with a food processing business. New enterprises are not eligible; it requires an existing unit to upgrade.

Is PMFME a loan or a grant?

PMFME provides a capital grant — not a loan. You receive 35% of your eligible project cost (up to ₹10 Lakh) as a direct grant that does not need to be repaid. The remaining 65% is financed through a bank loan.

What food processing activities qualify?

All food processing activities qualify: bakery, dairy, spices, pickles, papad, jaggery, beverages, snack foods, fruits & vegetables processing, fisheries processing, poultry processing, and more. Raw agriculture activities do not qualify.

What is ODOP and does it affect my PMFME application?

ODOP (One District One Product) is a government initiative identifying one key agricultural produce per district. PMFME applications linked to the ODOP product of your district get priority processing and higher chances of approval.

Can SHGs and women groups apply for PMFME?

Yes. SHGs and their federations, FPOs, and co-operative societies are specifically encouraged under PMFME. SHG members applying individually also get preferential treatment in the approval process.

35% Direct GrantFood Sector FocusedTechnology Upgrade

Government Scheme Guide

What is PMFME?PM Formalisation of Micro Food Enterprises Scheme

35% Grant up to ₹10 Lakh for Food Processing Businesses

₹10 Lakh

Max Grant

35%

Capital Grant

Existing Units

Eligibility

2024–25

Scheme Active

Overview

PMFME — Explained

PMFME (PM Formalisation of Micro Food Enterprises) is a Centrally Sponsored Scheme under the Ministry of Food Processing Industries (MoFPI). Launched in 2020, it aims to bring micro food processing enterprises into the formal economy.

The scheme provides a 35% capital grant (maximum ₹10 Lakh) to existing micro food processing units to upgrade their technology, obtain quality certifications (FSSAI, ISO), improve packaging, and build their brand.

PMFME also supports SHG members, FPOs, co-operatives, and cluster-based food enterprises. States have identified One District One Product (ODOP) clusters where applications are given priority processing.

Eligibility

Who Can Apply?

Existing micro food processing enterprise (turnover < ₹25 Lakh typically)
Individual micro entrepreneurs, SHGs, FPOs, co-operatives eligible
Enterprise must be in food processing — not raw agriculture
Priority given to ODOP (One District One Product) focus crops
Formal legal entity preferred (Udyam Registration mandatory)
Willingness to upgrade technology and obtain FSSAI certification

Documents

Documents Required

Udyam Registration Certificate

Mandatory

FSSAI License / Registration

Or proof of application

Business Proof (2+ years)

Sales records, GST, bank statements

Land / Premises Proof

Ownership or rent agreement

Machinery Quotations

For proposed technology upgrade

Aadhaar Card & PAN Card

Proprietor / all directors

SHG / FPO Registration

If applying as a group entity

Frequently Asked Questions

PMFME — FAQs

Free Consultation

Want Help Applying for PMFME?

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