SFAC Credit Guarantee Fund for FPCs
Small Farmers' Agri-Business Consortium (SFAC)
Why it matters
Lets your FPO borrow working capital without heavy collateral — SFAC guarantees a large share of the loan, so lenders say yes.
Launched
1 Jan 2014
Valid until
Ongoing
Benefit type
Loan / Credit
Created by
Government of India
Farmers benefited
700
What you get
A credit guarantee cover on collateral-free loans extended by eligible lending institutions to Farmer Producer Companies — up to 85% of the defaulted principal (maximum Rs 1 crore per FPC).
Eligibility criteria
- Registered Farmer Producer Company
- Minimum 500 shareholder farmers (relaxed for special areas)
- Loan from an eligible lending institution
- Not availing equity grant beyond prescribed limits
How to apply
- 1
Apply for a working-capital loan through an eligible lending bank
- 2
The bank applies for credit guarantee cover from SFAC
- 3
SFAC issues the guarantee against the sanctioned loan
- 4
Draw the collateral-free credit for your FPC operations
Documents required
- Certificate of incorporation / CIN
- Shareholder list
- Loan sanction from lender
- Business plan
- Audited accounts
AgriBoz is an intelligence layer only. We do not guarantee scheme approval or benefits. All scheme information is for awareness purposes. Apply directly through official government portals.