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 a private platform. We are not a government entity and are not affiliated with, endorsed by, or authorised by any government department. Scheme information here is compiled for awareness only and can change — always verify it on the official government source linked with each scheme, and apply through the official portal. We do not guarantee scheme approval or benefits. See the complete list of official government sources.