SFAC – Equity Grant and Credit Guarantee Fund (EGCGF)

The Equity Grant and Credit Guarantee Fund (EGCGF) scheme, launched by the Small Farmers’ Agribusiness Consortium (SFAC), is designed to strengthen Farmer Producer Organisations (FPOs) across India. It offers two key financial support mechanisms:

1. Equity Grant – to match member shareholding and boost the FPO’s equity base

2. Credit Guarantee – to help FPOs access collateral-free institutional credit

At SS Consultancy, we assist FPOs in availing both components of EGCGF by preparing compliant documentation, business plans, and coordinating with SFAC and financial institutions.

Key Objectives

• Strengthen the capital structure of FPOs by supplementing members’ equity

• Enable FPOs to qualify for larger credit limits from banks and NBFCs

• Reduce dependence on unsecured borrowing

• Promote long-term sustainability and financial independence of farmer-led institutions

1. Equity Grant Assistance

• Amount: Up to ₹15 lakh per FPO (matching shareholder contribution)

• Usage: Working capital, asset creation, operational expenses

• Eligibility: Registered FPOs with a minimum of 50 shareholder farmers

• Conditions: Shareholder contributions must be deposited in FPO bank account

2. Credit Guarantee Facility

• Coverage: Loans sanctioned by eligible lending institutions to FPOs

• Guarantee Limit: Up to ₹1 crore per FPO

• Guarantee Coverage:

  • 85% of default amount for loans up to ₹10 lakh

  • 75% of default amount for loans above ₹10 lakh

• Eligibility: FPOs with sound business model and regular compliance track record

Documents Required

• Certificate of Incorporation and PAN of the FPO

• KYC of Board of Directors and Promoters

• FPO Shareholder Register and Share Application Forms

• Audited financial statements (if available)

• FPO bank account details

• Business Plan / DPR (for credit-linked applications)

• Term Loan Sanction Letter (for credit guarantee cover)

SS Consultancy Services

• Eligibility check and FPO readiness assessment

• Preparation and submission of Equity Grant application

• Shareholding structure planning and member documentation

• Coordination with SFAC and authorized financial institutions

• Drafting of DPRs for credit guarantee applications

• Monitoring and reporting assistance post-disbursement

Secure Financial Strength for Your FPO with EGCGF

At SS Consultancy, we ensure your FPO gets the maximum benefit from the SFAC Equity Grant and Credit Guarantee Scheme with complete legal and technical guidance.

Email: info@ssconsultancy.net
Phone: +91 92468 22006