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The Venture Capital Assistance Scheme

By – Ministry of Agriculture and Farmers Welfare

“Venture Capital Assistance is financial support in the form of an interest-free loan granted by SFAC to qualify projects to meet the capital requirement shortfall for the project implementation”

Benefits

  • Helping agri-preneurs to invest in the establishment of agri-business projects through financial participation.
  • Provides financial support through the Project Development Facility (PDF) for preparing bankable Detailed Project Reports (DPRs).

Eligibility

  • Farmers
  • Producer Groups
  • Partnership/Proprietary Firms
  • Self Help Groups
  • Companies
  • Agripreneurs
  • units in Agri export zones
  • Agriculture graduates Individually or in groups for setting up agribusiness projects.

Application Procedure

One can only apply online, and it won’t accept offline application forms. Also, the checklist below is before you apply for the scheme.

Checklist

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

List of Enclosures to be submitted along with the form

Enclosures

  1. Promoter’s request letter addressed to the Managing Director SFAC, New Delhi on the original letterhead of firm/company
  2. Sanction letter of Sanctioning authority addressed to recommending branch
  3. Bank’s approved Appraisal/Process note bearing the 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 a list/backward linkage duly supported by an 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

Imp* Please keep scanned copies of the following documents ready (except for Point 3)

Fill the form now!

– Authored by Arvind Singh

  Content Developer, StartupMonk

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