Venture Capital Assistance Scheme (VCA)
Scheme for Entrepreneurial Development
Venture Capital Assistance Scheme (VCA) has been launched by the Small Farmer’s Agri-Business Consortium (SFAC) for the benefit of farmer-entrepreneurs who want to grow their agri-business. This programme aims to provide a term loan to farmers with qualified projects, so they may satisfy their project implementation capital requirements. The Venture Capital Assistance Scheme is reviewed in details in this article.
Venture capital assistance scheme's goals
- To assist entrepreneurs in building an agricultural operation that is accepted by banks and other financial institutions governed by the RBI.
- The Project Development Facility will assist farmers, producer organisations, and recent agricultural professionals in joining the value chain.
- To improve on the state and central SFAC levels that came before it.
- Promoting training and visits to empower agricultural entrepreneurs to start their own businesses.
- To boost rural income and employment by ensuring that farmers have access to reliable markets…
- Assisting in the backward links between agribusiness projects and farmers.
Features of the Venture Capital Assistance Scheme
The Venture Capital Assistance Scheme support programme
- Only initiatives that meet the requirements of the banks/financial institutions who are supporting the project will get venture capital.
- The venture money must be reimbursed to the SFAC by the due date indicated in the repayment plan.
- Venture funding for agri-business enterprises will be provided by the SFAC via soft loans.
Ensuring that a candidate is eligible for the program
The SFAC has designated the following organisations as eligible to receive a loan.
- The production company
- Partnership Firm
- Self Help Groups
- Agri-export zones units
- Graduates in the field of agriculture
In order to get help for venture capital assistance scheme, the project’s cost will determine how much money is available for financing. Here, you’ll find the minimum and maximum loans amounts.
- The loan amount will be 26 percent of the total equity of the promoter.
- The highest loan amount available under this scheme is Rs.50 million.
The loan for the projects positioned in the north-eastern sections, mountainous terrain are as follows.
- The quantity of borrowing will be 40 percent of the promoter’s equity.
- A loan of up to Rs.50 lakh can be obtained under this programme.
Conditions of Use
The following are the requirements to be met to get loan under this plan.
- An agricultural or agricultural-related initiative is required for this grant.
- Producers or farmers must be guaranteed a market for their products in the project.
- Banks and other financial institutions must approve the project before they can loan money to it.
- The project’s goal is to boost farmers’ incomes by encouraging them to grow high-value crops.
Venture capitalists have a lot of money at their option
Only if the following requirements are met may the Executive Committee of SFAC authorise the proposal for the recommendation of high venture capital be approved:
- If the project’s net worth is less than Rs. 10 crore.
- There is a backward area grant money if projects are located in the northeastern region, which includes hilly states.
- For a maximum of Rs.3 crore, if sanctioning authorities approve the provision for high venture capital,
Along with the application, you’ll need to provide the following documents.
- Promotional letter from the promoter
- Sanctioning authority’s letter of approval
- Appraisal accepted by banks
- The most recent account statement
- Copies of partnership firm certificates are required in partnership firms.
- proof of ownership in a business
- Relationship between farmers and their land is fully encouraged by the agreement
- Official document from the promoter saying that VCA was not previously available
- The CA certificate must be provided in the event that the promoter obtains an unsecured loan.
- current bank audit report in pdf format
- SFAC permission is required for banks to release collateral security, according to a bank statement.
- The project’s cost justifies the working capital margin.
The Scheme's Application Process
There are a few steps you need to do in order to apply for venture capital assistance scheme support.
Visit an Official portal
Step 1: The applicant must go to the SFAC, Government of India, official website.
Scheme for Entrepreneurial Development
Step 2: From the portal’s main page, choose the “Venture Capital Assistance Scheme (VCA)” tab.
Decide on a Design Plan.
Step 3: Select “Online submission of venture capital assistance scheme Form” from the drop-down menu on the same page as the application.
Enter the Promotional Code
Step 4: Click on the “Apply for New Venture Capital Assistance Scheme Application” link on the ensuing screen to complete Step 4.
Fill in the Blanks
Step 5: The application form for the venture capital assistance programme will come up when you click on the “Start Filing Application Form” button.
Step 6: Fill out the application with the necessary information, including but not limited to a list of banks
- Name and location of the branch’s administrative headquarters
- The price of a project
- Consultant’s name and title
- Files can be uploaded here.
Step 7: Once you’ve completed the application, you’ll need to attach all the necessary papers.
Application is being submitted.
Step 8: Finally, in order to finish the procedure, click on the “Next” option.
As a reminder, applicants will be given a reference number as an acknowledgement number for their application.
The bank or financial institution is responsible for approving the loan amount following the filing of an application. If the following requirements are met, the bank or financial institution will send its permission to the SFAC. For eligible projects, the SFAC will handle the loan amount.
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