A Step-by-Step Guide to apply for Benefits under PMFME Scheme – 2025

Learn about the top benefits under PMFME Scheme for micro food businesses, including capital subsidy, training, and expert support. Find out who can apply, what documents you need, and how to get started.

Introduction

Are you someone who runs a small food business—maybe making pickles, snacks, sweets, dairy products, or anything delicious—and want to grow it further? If yes, the PMFME Scheme by the Government of India might be just what you need.

PMFME stands for “Pradhan Mantri Formalisation of Micro Food Processing Enterprises”. It’s a scheme launched by the Ministry of Food Processing Industries to support small food business owners like you. The aim is to help you upgrade your business, become more competitive, and get formal recognition—which means things like getting registered under GST, getting FSSAI certification, and more.

But that’s not all. The scheme also helps you get a loan with a 35% subsidy, offers free training, and even provides help in preparing your business plan and applying for a loan. It’s a complete support system for anyone dreaming of turning their small food venture into a successful business.

In this article, I’ll walk you through what are the benefits under PMFME Scheme , who can apply, what benefits you get, and how you can make the most of it—step by step. Let’s dive in!

Objectives of the Scheme

The PMFME Scheme isn’t just about giving money or loans—it’s about helping small food businesses grow in the right way. The government has designed this scheme with some clear goals in mind:

1. Help small food businesses become formal

Many micro food units run without any formal registration or licenses. The scheme encourages these businesses to get proper registrations like:

• GST
• FSSAI license
• Udyog Aadhaar / UDYAM registration

This formalization helps you grow your business, reach more customers, and even access more government support in the future.

2. Improve quality and hygiene

The scheme focuses on training you in food safety, hygiene, and quality standards. This ensures that your products are safe, long-lasting, and more appealing to customers.

3. Build skills and confidence

Through free training programs, the scheme teaches you important skills like:

• How to manage your business
• How to keep accounts and do bookkeeping
• How to market your products
• How to package and store food properly

4. Support with capital and planning

Upgrading a unit or starting a new one needs investment. PMFME supports this by:

• Giving a 35% subsidy on capital investment (up to ₹10 lakh)
• Helping you create a solid business plan or DPR (Detailed Project Report)
• Assisting you in getting loans from banks

So, in simple words, the scheme wants to help you grow, improve, and succeed—with financial, technical, and training support, all in one package.

Who Can Apply for Benefits under PMFME Scheme? (Eligibility Criteria)

Now, let’s talk about who can actually apply for the benefits under PMFME Scheme. The good news is—if you already run a small food business, there’s a good chance you qualify. But there are a few conditions you need to meet.

1. You should already have a food business

This scheme is mainly for existing micro food processing units—that means you should already be making and selling food items, even if on a small scale.

2. Your business should be unregistered or informal

If your unit is not officially registered yet (like not having GST or FSSAI), that’s okay. In fact, the scheme helps you become formal. But if you’re already registered, that works too.

3. You should employ less than 10 workers

This is for micro units, so if you have a small team (less than 10 people), you’re eligible.

4. You should preferably be making your district’s ODOP product

ODOP stands for One District One Product. Every district has a selected food item it focuses on (like pickles, papad, dairy, flour, etc.). If your product is the same, you’ll get preference. But don’t worry—other products are also allowed.

5. You must be the owner of the business

You need to own the unit, either as a sole proprietor or as part of a partnership. You can’t apply for someone else’s business.

6. Age and education

• You should be at least 18 years old
• You must have passed at least 8th standard (Class 8)

7. Only one person per family can apply

To keep it fair, only one member per family (husband, wife, or child) can receive the benefit.

8. Willingness to contribute

You must be ready to:

• Contribute at least 10% of the project cost
• Take a loan from the bank for the remaining amount

Note on land and buildings

The cost of land is not counted in the project cost. But if you rent a place or have a ready building, those costs can be included (up to 3 years of rent).

If you meet these conditions, you’re all set to take the next step and apply. And don’t worry if it seems complicated—there’s help available at every stage (we’ll talk about that soon).

Key Benefits under PMFME Scheme

If you’re wondering, “What will I actually get from the PMFME Scheme?” — here’s a simple breakdown of the main benefits under PMFME Scheme you can enjoy as a food entrepreneur:

1. Big Savings with Subsidy – Up to ₹10 Lakh!

You can get a 35% subsidy on the total project cost, up to a maximum of ₹10 lakh.

Example:
If your total project cost is ₹8 lakh, you contribute ₹80,000 (10%), the government gives ₹2.8 lakh (35%), and the bank gives the rest as a loan.

This makes it easier to expand or upgrade your business without the full financial burden falling on you.

2. Free Training and Skill Building

You’ll get professional training on how to run and grow your business. This includes:

• Business basics (how to manage and market your products)
• Food safety and hygiene standards (like FSSAI)
• Packaging, storage, and processing techniques
• Specific training based on the ODOP product in your district

So, even if you’re new to some business skills, you’ll get all the help you need.

3. Help with Business Planning (DPR)

Not sure how to make a business plan? No problem!
The scheme provides handholding support to:

• Prepare your Detailed Project Report (DPR)
• Estimate your costs
• Plan for raw materials, machinery, staff, etc.

4. Assistance in Getting a Bank Loan

Applying for a loan can be confusing—but under PMFME:

• You get help connecting with banks
• Your DPR is reviewed by a District Committee
• If approved, your loan is linked with the subsidy support

So, you’re not left to figure it all out alone.

5. Ongoing Support from Experts

You can connect with District Resource Persons (DRPs) who will guide you through:

• Filling the application
• Getting documents ready
• Getting licenses (like FSSAI, GST, Udyog Aadhaar)
• Using machines and setting up your upgraded unit

They’re like your personal business buddies during the entire process.

How to Apply for Benefits under PMFME Scheme – Step-by-Step Process

Applying for the benefits under PMFME Scheme might sound like a big task, but don’t worry—it’s quite straightforward when you break it down. Here’s how you can do it, step by step:

Step 1: Register Yourself on the PMFME Portal

• Go to the official website: www.pmfme.mofpi.gov.in
• Click on “Login” → “Applicant Login”
• Click “Sign Up” to create your account
• Enter your Aadhaar number — an OTP will be sent to your mobile and email
• Fill in your basic details like name, state, and district
• Once done, you’ll get your username and password to log in

Step 2: Fill the Application Form

Once you’re logged in:

• Choose the right application type:
  • Existing unit with turnover less than ₹1 crore
  • Existing unit with turnover more than ₹1 crore
  • New enterprise (ODOP products only)
• Fill in details like:
  • Personal and enterprise info
  • What product you make or plan to make
  • Estimated cost and machinery needed
  • Bank details and quotations
• You can either fill it online or download the Excel DPR format, fill it offline, and upload it back

Step 3: Upload Documents

• Upload necessary documents such as:
  • Aadhaar card
  • Business registration (if any)
  • Quotations for machinery
  • Bank details
  • Photos of your unit

Step 4: Submit the Application

• After completing all sections and uploading documents,
  • Tick the declaration box
  • Click “Submit”
• Once submitted, you cannot edit the application, so double-check everything!
• You’ll receive a confirmation via SMS and email

Step 5: Review by District Level Committee (DLC)

• Your application goes to the District Committee
• A local expert (District Resource Person) will visit your unit to verify details
• If everything’s fine, your application gets recommended to the bank
• If anything is missing, they may ask you to submit more documents

Step 6: Bank Linkage and Loan Approval

• The bank reviews your application and DPR
• If approved, your loan is sanctioned, and the subsidy is linked
• If the first bank doesn’t approve, it goes to your second preferred bank

Step 7: Loan Disbursement

• The bank disburses the loan in stages as your project progresses
• The 35% subsidy is credited into a special account and adjusted after 3 years if the business is running well

Documents and Information You’ll Need

Before you start your application for the benefits under PMFME Scheme, it’s a good idea to keep all your documents and details ready. This will make the process smoother and faster.

Here’s a simple checklist to help you:

Personal Identification

• Aadhaar Card (for OTP verification and identity proof)
• Mobile number and email ID linked with your Aadhaar

Business/Unit Details

• Name and address of your food processing unit
• Details of the food products you make (especially if it’s your district’s ODOP item)
• Number of workers you employ
• Photos of your unit (inside and outside)

Financial Information

• Details of your business turnover
• Estimated cost of the project (machinery, working capital, etc.)
• Quotations for new machines or equipment
• If you already maintain accounts: Profit & Loss statement, balance sheet (for existing units)

Bank Details

• Name and branch of your preferred bank for taking the loan
• Bank account details

Other Supporting Documents

• Ownership proof of your business (or rental/lease agreement if the premises is not owned)
• Educational qualification proof (at least 8th pass)
• If applicable: GST certificate, FSSAI license, Udyam Registration (optional but helpful)

For New Units

If you’re starting a new food business:

• You’ll need a clear business plan (DPR – Detailed Project Report)
• Details about the location and type of product you want to make (must match the ODOP of your district)

Tip: If you’re not sure how to prepare some of these documents or need help with DPR, we can assist you step by step.

To Conclude

The PMFME Scheme is a golden opportunity for small food business owners to upgrade their units, access funding, and build a stronger future. Whether you’re already making products or planning to start, this scheme gives you the support you need—money, training, and expert guidance—all in one place. Don’t let this chance go to waste. Take the first step today and turn your local food venture into a growing business success story!