Eligibility Criteria for Farmer Producer Companies (FPCs)
It is a duly registered FPC under Part IXA of the Indian Companies Act, 1956.
It has raised equity from its Members as laid down in its Articles of Association/Bye laws.
The number of its individual shareholders shall not be lower than 500.
Minimum 33% of its shareholders are small, marginal and landless tenant farmers.
Maximum shareholders by any one member othe than an Institutional member is not more than 5% of total equity of the FPC.
It has a duly elected/nominated Board with a minimum of five members and having adequate representation from farmers and minimum one woman member.
It has a business plan and budget for 18 months.
The Bank ELI has extended/sanctioned within six months of the date of application for the Guarantee or in principle agreed in writing/has expressed willingness in writing to sanction Term Loan/ Working Capital/ Composite Credit Facility without any collateral security or third party guarantee including personal guarantee of Board Members.
