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Formation & Promotion of FPOs — Equity Grant & Credit Guarantee (CGFTFPO)

Offered by SFAC / NABARD (FPO Promotion Scheme)

Overview

This is a central sector scheme for the Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs), implemented with SFAC (Small Farmers' Agri-Business Consortium) playing a lead role, promoted by the Department of Agriculture and Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Government of India. Under this umbrella, SFAC administers two financial instruments for Farmer Producer Companies: the Equity Grant Scheme and the Credit Guarantee Fund Scheme, both aimed at making FPOs sustainable and viable long term.

Eligibility

  • Equity Grant Scheme: FPC must be duly registered under Part IX of the Companies Act, 1956, must have raised equity from members, have at least 50 individual shareholders, and paid-up equity not exceeding 30 lakh rupees
  • Minimum 33% of shareholders must be small, marginal, or landless tenant farmers; no single non-institutional member can hold more than 5% of total equity
  • Credit Guarantee Fund Scheme: same registration and equity-raising requirements, but at least 500 individual shareholders are required, plus a duly elected Board of Directors with a minimum of five members including at least one woman member

Funding Purpose

The Equity Grant Scheme is designed to improve the availability of working capital for FPCs, while the Credit Guarantee Fund Scheme supports development of business activities by enabling FPCs to access credit without requiring collateral from lending institutions.

Application Process

Eligible FPCs apply for the Equity Grant using a prescribed application form. Mandatory documents include a shareholder list and share capital contribution verified by a Chartered Accountant, a board resolution, audited financial statements, six months of bank statements, KYC documents, certificate of incorporation, and an 18-month business plan.

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How to Apply

  1. 1Click "Apply Now" above and submit your application directly on the official page.
  2. 2The offering organisation screens applications against its own eligibility criteria.
  3. 3Shortlisted applicants may be invited to a pitch or interview round.
  4. 4The final decision rests solely with the offering organisation.
  5. 5There is no guarantee of funding at any stage.

Before You Apply

  • ZeedFund is an independent tracker, not the offering organisation or a funding body.
  • Verify current eligibility, funding amount, and deadline on the official page before applying. Details can change after we last verified them.
  • Once you apply, all follow-up (screening updates, interview or pitch invites, and the final decision) comes directly from the facilitator, incubator, or investor, never from ZeedFund. Check their application portal or email yourself for status updates; we won't have visibility into it.