Andhra Pradesh Govt, SBI enter pact to upgrade, establish 7500 micro food processing units

6 Sep 2023 , 10:38 AM

On Tuesday, the Andhra Pradesh Food Processing Society (APFPS) and the State Bank of India (SBI) entered into an agreement to improve and assist the creation of at least 7,500 micro food processing units in the state.

This agreement will be carried out during the current fiscal year 2023-24 under the Prime Minister’s Formalization of Micro Food Processing Enterprises (PMFME) scheme.

As part of this agreement, SBI would provide qualified beneficiaries with collateral-free loans of up to Rs 10 lakh, in accordance with the requirements of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) under the Agri Infrastructure Fund.

In the previous fiscal, SBI sanctioned approximately 500 loans under the PMFME scheme, establishing itself as a major lending partner in this endeavor. Through this engagement with farmer producer organizations (FPO), it has also promised to promote the promotion of food processing units. In addition to loans, the banking behemoth will give working capital loans for the successful functioning of assisted firms.

This arrangement includes additional benefits such as streamlined loan processing with less documentation and processing time, favorable interest rates, and others.

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