I. Government of Tamil Nadu has placed Rs. 266.67 Crore with NABKISAN for implementation of Schemes to FPOs to Tamil Nadu through NABKISAN, detailed as under:

• Tamil Nadu Government Mezzanine Capital Assistance Scheme (TNGMCAS)
  • The scheme covers the FPCs registered in Tamil Nadu.
  • The assistance will be in the form of subscription to Unsecured Non-convertible, Redeemable, Debentures of FPCs with tenure of 5 years.
  • The quantum of assistance under the scheme is restricted to the present paid up capital of the FPC subject to maximum of Rs.10 lakh per FPC.
  • The FPC has to pay a yearly interest of 4% on the assistance amount received. Debenture interest to be paid by FPC within 30 days of close of financial year.
  • At the end of fifth year, the principal amount of debenture has to be redeemed by FPC and the proceeds has to be paid to NABKISAN, on or before 60 days at the end of five years.
  Eligibility criteria for FPCs to get assistance under TNGMCAS
  • The FPC is duly registered under the Companies Act.
  • The minimum number of shareholders is 500.
  • The small and marginal farmers and landless labor members are having minimum 33% or more of the capital contributed.
  • The FPC should have enabling clause in its Memorandum of Association and Articles of Association to borrow in the form of Debentures.
  • The FPC should have duly elected Board of Directors with minimum number of members as prescribed under the Companies Act, 2013.
  • The FPC should have a duly appointed CEO as per Companies Act.
  • It is preferable if there is a women member in the Board of Directors.
  • The FPC should not be in default to any organization.
  • The FPC should submit Board approved business plan for coming 5 years period along with the application.
  • The accounts of the company should be audited by the Chartered Accountant on yearly basis.
• Tamil Nadu State Credit Guarantee Scheme for Farmer Producer Companies (TCGFPC)
  • This scheme facilitates access to credit facility, by providing collateral free loans availed by FPCs from commercial banks and NABKISAN, through guarantee coverage to the extent of 50%, for loan amount upto Rs.100 lakh.
  • Eligibility criteria for FPCs to be covered under TCGFPC
    • The FPC is duly registered under the Companies Act.
    • The Networth of the FPC should not be less than Rs.2 lakh.
    • The FPC should be incorporated atleast 6 months prior to submission of loan application to lending institution and have atleast one Balance sheet as on date of such application.
    • The FPC should not be in default to any organisation.
    • The minimum number of shareholders is 500.
    • The small and marginal farmers and landless labor members are having minimum 33% or more of the capital contributed.
    • The FPC should have duly elected Board of Directors with minimum number of members as prescribed under the Companies Act, 2013.
    • The FPC should have a duly appointed CEO as per Companies Act.
    • The FPC should have business plan for atleast one year for working capital loan and for tenor of loan in case of term loans.
• Tamil Nadu Government Revolving Fund Scheme for Farmer Producer Companies (TRFFPC)
  • Under the Scheme, NABKISAN will reimburse 1/3rd of the interest rate as concessional rate of interest. The concessional interest benefit will be passed on to the FPC at the end of the year, upon prompt repayment of interest and principal instalments, in the case of term loans and only after repayment of principal, interest and other dues, if any, in the case of working capital loans.
  • Eligibility criteria for FPCs for TRFFPC
    • The FPC is duly registered under the Companies Act.
    • Minimum number of members is 500.
    • FPC having loan sanctioned upto Rs.1 crore will be covered under the scheme.
    • The small and marginal farmers and landless labor members are having minimum 33% or more of the capital contributed.
    • The FPC should have duly elected Board of Directors with minimum number of members as prescribed under the Companies Act, 2013.
    • The FPC should have a duly appointed CEO as per Companies Act.
    • FPC should not be in default to any organisation.
    • The FPC should have business plan for the proposed period of loan assistance.
    • The accounts of the FPC should be audited by Chartered Accountant on yearly basis.

II. NABKISAN has entered into MoU with Government of Odisha for implementing Credit Guarantee Scheme for the FPOs of Odisha.

III. NABKISAN is an eligible institution for availing Credit Guarantee for its lending to FPOs from Small Farmers Agri Consortium and NABARD, through their Credit Guarantee Scheme for FPOs.