Karthiga

Published on: Jun 24, 2026

Venture Capital Assistance Scheme

The Small Farmer’s Agri-Business Consortium (SFAC) has launched the scheme named Venture Capital Assistance (VCA) Scheme for the welfare of farmer-entrepreneur to develop their agri-business. This scheme intends to assist in the form of the term loan to the qualifying projects of the farmers to meet their capital requirements for the implementation of the project. In this article, we look at the Venture Capital Assistance Scheme in detail.

Objectives of the Scheme

The objective of the Venture Capital Assistance Scheme is explained as below:

To support the entrepreneurs in setting up an agribusiness venture which is approved by the banks, financial institutions regulated by the RBI.
To help farmers, producer groups, and agriculture graduates to participate in the value chain through the Project Development Facility.
To strengthen the previous stages of state and central SFAC.
To promote training and visits of agri-entrepreneurs in setting up agribusiness projects.
To provide assured markets to the producers to increase rural income and employment.
To assist the backward linkages of agribusiness projects with producers.

Features of the Scheme

The features of the Venture Capital Assistance Scheme are as follows:

The venture capital will be provided only for the projects qualified by the banks/ financial institution funding the project.
As per the repayment schedule, the venture capital has to be repaid to the SFAC within the stipulated period.
The SFAC will provide the venture capital to the agri-business projects in the form of soft loans.

Eligibility Criteria

The following are the entities specified to avail the loan from the SFAC.

Individual
Farmers
Producer group
Partnership Firm
Self Help Groups
Company
Agripreneuers
Agri-export zones units
Agricultural graduates

Quantum of Loan

The quantum of loan for the venture capital assistance will be provided depending upon the project cost. The minimum and maximum loan amount are specified here.

The quantum of loan will be 26% of the promoter’s equity.
The maximum amount of loan provided under this scheme will be Rs.50 lakhs.

The loan for the projects placed in the north-eastern parts, hilly region are as follows.

The quantum of loan will be 40% of the promoter’s equity.
The maximum amount of loan provided under this scheme will be Rs.50 lakhs.

Terms and Conditions

The following are the conditions to be satisfied to avail loan under this scheme.

The project must be in the agriculture sector or any other sector related to the agriculture practices.
The project must give the assured market to the producer or farmers.
The project must be sanctioned by the banks or financial institution for the grant of loan to the project.
The project should encourage the farmers in yielding high-value crops for the increase in the income of the farmer.

High Venture Capital

The Executive Committee under SFAC has the power to authorise the project for the recommendation of high venture capital, only when the following conditions are satisfied:

If the net value of the project is not more than Rs. 10 crore.
If the projects are located in the northeastern region, hilly states which are declared as backward regions by the planning commission backward regions grant fund scheme.
If the sanctioning authority approves the provision for the high venture capital to a maximum of Rs.3 crore

Documents Required

The following are the documents are to be furnished along with application form.

Promoter’s request letter
Sanction letter of the sanctioning authority
Banks' approved appraisal
The current statement of the account
In case of partnership firm the copy of partnership firm certificate
Equity certificate
Farmer’s backward linkage duly supported by the agreement
Affidavit of promoter stating that VCA was not availed earlier
In case of unsecured loans acquired by the promoter, the CA certificate has to be furnished
Copy of current bank inspection report
Bank’s confirmation is stating that they will not release collateral security without the SFAC approval
Justification of margin on working capital was taken in project cost

Application Procedure for the Scheme

To apply for the Venture Capital Assistance Scheme, follow the procedure which is mentioned below: Visit Official Portal Step 1: The applicant has to visit the official portal of the SFAC website, Government of India.

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Venture Capital Assistance Scheme Step 2: Click on “ Venture Capital Assistance Scheme (VCA)” tab which is visible on the homepage of the portal.

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Select the Scheme Step 3: At the same page, select “Online submission of Venture Capital Assistance Scheme Form” from the list of options to apply for the scheme through online mode.

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Apply for the Scheme Step 4: On the next page, Click on “Apply for New Venture Capital Assistance Scheme Application” link. Complete the Details Step 5: Click on “Start Filing Application Form” button, then the application form the Venture Capital Assistance Scheme will open up.

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Step 6: Fill the application form with the required details such as

Bank details
Name and Address of controlling office of the branch
Status of Accounts
Cost of projects
Name of the consultant
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Upload the Documents Step 7: After filling the application form, you need to upload the documents required along with the form. Submission of Application Step 8: Finally click on the “Next” button to complete the process. Note: The applicant will be provided with the reference number as the acknowledgement number for the confirmation of submission.

Sanction of Loan

Upon submission of application, the bank or financial institution is liable for the approval of the loan amount. The bank or financial institution if satisfied with the above criteria will forward its approval of the project to the SFAC. The SFAC will process the loan amount for qualified projects.

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Frequently Asked Questions

Common questions about Venture Capital Assistance Scheme for Agri.

The Venture Capital Assistance Scheme is a government initiative launched by the Small Farmer's Agri-Business Consortium (SFAC) to provide financial assistance in the form of term loans to farmer-entrepreneurs and agri-businesses. The scheme aims to support the implementation of qualifying projects and meet their capital requirements.

The scheme is open to various entities, including individual farmers, producer groups, partnership firms, self-help groups, companies, agri-entrepreneurs, agri-export zones units, and agricultural graduates.

The maximum loan amount available under the Venture Capital Assistance Scheme is Rs. 50 lakhs. For projects located in the northeastern and hilly regions, the maximum loan amount is also Rs. 50 lakhs, but the quantum of loan is higher at 40% of the promoter's equity.

The quantum of loan under the scheme is determined as a percentage of the promoter's equity. For regular projects, the quantum of loan is 26% of the promoter's equity, while for projects in the northeastern and hilly regions, it is 40% of the promoter's equity.

To be eligible for the scheme, the project must be in the agriculture sector or related to agricultural practices, provide assured markets to producers or farmers, be sanctioned by banks or financial institutions, and encourage the cultivation of high-value crops to increase farmer income.

The required documents include a promoter's request letter, sanction letter from the sanctioning authority, bank's approved appraisal, current statement of account, equity certificate, farmer's backward linkage agreement, affidavit from the promoter, and other relevant documents depending on the type of entity.

The application process is online through the official portal of the SFAC. Applicants need to visit the portal, select the "Venture Capital Assistance Scheme (VCA)" tab, and follow the steps to fill out and submit the application form along with the required documents.

After submitting the application, the bank or financial institution evaluates the project and forwards its approval to the SFAC. If the SFAC finds the project qualified, it processes the loan amount.

The Project Development Facility aims to help farmers, producer groups, and agricultural graduates participate in the value chain by setting up agri-business ventures.

Yes, the Executive Committee under SFAC has the power to authorize higher venture capital, up to a maximum of Rs. 3 crore, for projects meeting specific criteria, such as a net project value not exceeding Rs. 10 crore or being located in northeastern or hilly regions classified as backward areas.