Recognising the importance of easy access of credit, in the budget of 2014-15, a special fund of Rs. 2,000 crore has been created in National Bank for Agriculture and Rural Development (NABARD) for providing affordable credit to entrepreneurs.
- Why? To help them set up food processing units in designated Food Parks.
Loan is extended by NABARD from the Fund to various categories of promoters in food processing sector, such as Individual entrepreneurs, State Governments, State Government Agencies, cooperatives, Farmers Producer Organizations (FPOs), corporate, companies etc.
- As per Scheme guidelines the loan can be availed for setting up of individual food processing units and also modernization of existing units in the designated food parks etc.
- The loan is repayable within a maximum period of 7 years, including the initial gestation of a maximum of 2 years.