Financing Farmer Producer Companies

Features & Benefits


Purpose of the loan is to meet the financial needs of the Farmer Producers Companies (FPCs) by way of Term Loan or Working Capital as per the requirement.  The Fund has been set up with the primary objective of providing a Credit Guarantee Cover to Banks for providing collateral free credit to FPCs in respect of loans not exceeding Rs.100.00 lakhs.

Minimal paperwork 
Hassle free processing 


All FPC with six months of active operations from the date of registration shall be considered. 

I.    It shall be a duly registered FPC as defined in section IXA of the Indian Companies Act, 1956 (including any amendments thereto or re-enactment thereof) and incorporated with the Registrar of Companies (RoC ) 
II.    It has raised equity from its Members as laid down in its Articles of Association/ Bye laws. 
III.    The number of its individual shareholders shall not be lower than 500. Minimum 33% of its shareholders should be small, marginal and landless tenant farmers. 
IV.    Maximum shareholding by any one member other than an Institutional member will not be more than 5% of total equity of the FPC. It has a duly elected/nominated Board with a minimum of five Members and having adequate representation from farmers and minimum one woman member. 
V.    It has a duly elected Management Committee. 
VI.    It has a business plan and budget for 18 months. 

Other Terms & Conditions


  • Cash Credit  – Maximum loan period up to 3 years
  • Term loan – up to 7 Years.


  • Cash Credit – 15%, Term Loan – 25%.

Primary Security

  • Hypothecation of assets created out of bank’s finance
  • Mortgage of developmental landed property wherever applicable
  • Collateral Security – NIL


  • Credit Guarantee is available for collateral free loans to FPCs offered by SFAC.

Interest Rates & Charges

Please visit the rates and charges page for details

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