Credit Guarantee Scheme for Livestock Sector
- 25 Jul 2023
- 3 min read
Why in News?
The Ministry of Fisheries, Animal Husbandry and Dairying has launched the first ever “Credit Guarantee Scheme” under Animal Husbandry Infrastructure Development Fund (AHIDF) to facilitate collateral-free credit for MSMEs in the livestock sector.
What are the Key Features of the Credit Guarantee Scheme?
- Strengthen credit delivery system and facilitate smooth flow of credit to Micro, Small & Medium Enterprises (MSMEs) engaged in the Livestock sector.
- Increase access to finance for un-served and under-served livestock sector, with a focus on first-generation entrepreneurs and underprivileged sections of society.
- Credit Guarantee Fund Trust:
- A Credit Guarantee Fund Trust of Rs. 750.00 crores have been established to provide credit guarantee coverage up to 25% of the credit facilities extended to eligible MSMEs by lending institutions.
- Interest Subvention:
- The scheme offers an interest subvention of 3% on loans obtained from Scheduled Banks or National Cooperative Development Corporation (NCDC).
- Borrowers can avail up to 90% of the total project cost as a loan.
What is Animal Husbandry Infrastructure Development Fund?
- The AHIDF has been set up as MSMEs and Private companies also need to be promoted and incentivized for their involvement in processing and value addition infrastructure.
- The AHIDF is a Central Sector Scheme under the Prime Minister’s Atma Nirbhar Bharat Abhiyan stimulus package of Rs.15000 crores for incentivizing investments in:
- Dairy processing and value addition infrastructure.
- Meat processing and value addition infrastructure.
- Animal Feed Plant.
- Breed Improvement technology and Breed Multiplication Farm.
- Animal Waste to Wealth Management (Agri Waste Management).
- Setting up of Veterinary Vaccine and Drugs Manufacturing facilities.
- Individual entrepreneurs, private companies, MSMEs, Farmers Producers Organizations (FPOs), and Section 8 companies are encouraged to invest in the Livestock sector through this fund.