Small Farmer’s Agribusiness Consortium – Venture Capital Assistance


Promoting Agri-Business by encouraging institutional and private sector investments and linkages to ensure the empowerment of all farmers in the country.   To link small farmers to technology as well as to the markets in association with private, corporate or cooperative sector and if necessary, by providing backward and forward linkages. SFAC is organized by the DAC. It was Established in the year of 1994. SFAC is a Society established by DAC, GOI, chaired by Hon. Agriculture Minister. RBI, NABARD, PSBs are original promoters of SFAC. Venture Capital Assistance Scheme is a Central Sector Scheme for agri-business development implemented by SFAC. The scheme provides financial assistance to agriculture entrepreneurs by participating in their equity component as interest free loan payable after repayment of term loan. The VCA Scheme is implemented during the XII Plan Period (2012-2017)


  • SFAC would provide Venture Capital to qualifying projects on the recommendations of the Notified Financial Institution financing the project. This venture capital will be repayable back to SFAC after the repayment of term loan of lending Notified Financial Institution as per original repayment schedule or earlier.
  • To facilitate setting up of agribusiness ventures in close association with banks & the projects should be accepted by banks/ financial institutions for grant of term loan.
  • To catalyses private investment in setting up agribusiness projects and thereby providing an assured market to producers, for increasing rural income and employment.
  • To strengthen backward linkages of agribusiness projects with producers.
  • The projects should be in agriculture or allied sector or related to agricultural services. Poultry and Dairy are also covered under the scheme..
  • The project should encourage farmers to diversify into high value crops.

The Scheme:

SFAC provides interest –free venture capital to agribusiness projects by way of soft loan to supplement the financial gap worked out by the sanctioning authority of term loans under means of finance, with respect to the cost of the project. (Other than Hilly and North-Eastern states and backward Districts). The quantum of SFAC Venture Capital Assistance will be the lower of the following:

  1. 26% of the promoter’s equity (or)
  2. Rs. 50.00 lakhs.

Provided that for projects located in North-Eastern Region, Hilly States (Uttarakhand, Himachal Pradesh, Jammu & Kashmir) and in all cases in any part of the country where the project is promoted by a registered Farmer Producers Organisation, the quantum of venture capital will be the lowest of the following: 40% of the promoter’s equity Rs. 50.00 lakhs.

Eligible cost of the Project:

Minimum Rs.15.00 lakh (Rs.10.00 lakh for Hilly and North-Eastern states and backward districts). Maximum up to Rs. 500.00 lakhs. However, projects valuing Rs. 10.00 lakhs and above, proposed to be located in backward districts as notified by Planning Commission, hilly and North-Eastern States could also be considered for PDF and VCA. The Executive Committee of SFAC will have the power to consider projects for higher Venture Capital Assistance provided:Provision for higher VCA has been appraised and approved by sanctioning authority of term loan subject to maximum of Rs. 300.00 lakhs. Total cost of the project not more than Rs. 1000.00 lakhs. Projects are located in the North Eastern Region (NER) and other difficult pre- identified districts declared backward by Planning Commission’s Backward Regions Grant Fund Scheme.

Eligibility Criteria:

Assistance under the scheme is available to: Individuals, Farmers, Farmers Producers companies / Organisations, Partnership/Proprietary, Self – help groups, Companies, Agripreneurs, Units in Agri- Export Zones, Agriculture graduates individually or in group.

Eligible Primary Lending Institutions (Banks):

SFAC will implements the scheme in close association with Nationalized banks, SBI and its subsidiaries, IDBI, SIDBI, NABARD, NCDC, NEDFi, Exim Bank, RRBs and State Financial Corporations. They are like..

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank


Indian Bank

Indian Overseas Bank


Punjab & Sind Bank

Punjab National Bank

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank Of India

State Bank of Mysore

State Bank of Patiala State Bank of Sind Bank State Bank of Travancore Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

List of Eligible Items for SFAC

Aqua Agriculture

Banana Ripening

Bio fuel


Cattle Feed

Coconut shell charcoal



Cold storage

Dairy processing

Edible oil


Food processing

Fruit & Veg processing



Herbal Extracts


Lemon grass



Milk Procurement & Chilling

Misc. Spices


Mustard Oil

Onion Dehydration

Organic compost


Patchouli (Medicinal plant) Pickles/ Sauces / Jam Rice / Poha Mill

Potato Chips Poultry

Layer Farm

Pulse Processing Unit


Sago (Tapioca Roots)

Seed Processing


Sugar Beet

Sweet / Baby corn

Vermi Compost