Interest Subsidy Scheme for Establishment of Agro and Food Processing Units

Why it matters

Farmers and rural entrepreneurs who want to set up a small food-processing unit can get part of their loan interest reimbursed, making it easier to add value to raw produce.

What you get

This scheme offers an interest subsidy on bank loans taken to establish agro-processing and food-processing units (such as small-scale fruit/vegetable processing, grain milling, or oil extraction units), helping farmers and rural entrepreneurs move up the value chain rather than selling only raw produce. By easing the financing cost, the scheme encourages local value addition, which can improve farmer incomes and create rural processing-sector employment.

Eligibility criteria

• Must have availed a bank loan for setting up an eligible agro/food-processing unit in Gujarat
• Unit must fall under the notified categories of agro/food processing for the scheme
• Loan repayment must be maintained as per the bank's schedule to continue receiving the interest subsidy

How to apply

1. 1

   Prepare a project report for the proposed agro-processing unit and approach an eligible bank for a loan

2. 2

   Apply for the interest subsidy component through the Agriculture/Industries department once the loan is sanctioned

3. 3

   Submit loan sanction and repayment documents periodically

4. 4

   Approved interest subsidy is credited against the loan account or to the beneficiary's bank account

Documents required

• Aadhaar card
• Project report/business plan
• Bank loan sanction letter
• Bank passbook
• Repayment statements