Department of Animal Husbandry & Dairying, Ministry of Fishries, Animal Husbandry and Dairying is implementing the Credit Guarantee Scheme under Animal Husbandry Infrastructure Development Fund (AHIDF) to strengthen credit delivery system and facilitate smooth flow of credit to the Micro, Small & Medium Enterprise (MSMEs) engaged in Livestock sector without hassles of collateral security.
For operationalizing the scheme, DAHD has established a Credit Guarantee fund Trust of Rs. 750.00 crores, which will provide credit guarantee coverage up to 25% of the credit facilities extended to the MSMEs by the eligible lending institutions.
The credit guarantee scheme facilitates access to finance for un-served and under-served livestock sector, making availability of financial assistance from lenders to mainly first-generation entrepreneurs and under privileged section of society, who lack collateral security for supporting their ventures.
The main objective of the Credit Guarantee Scheme is that the lender should give importance to project viability and secure the credit facility purely on the basis primary security of the assets financed.
The establishment of credit guarantee fund trust was approved under the Prime Minister’s AtmaNirbhar Bharat Abhiyan stimulus package of Rs.15000 crores“ Animal Husbandry Infrastructure Development Fund” (AHIDF) for incentivizing investments by individual entrepreneurs, private companies, MSMEs, Farmers Producers Organizations (FPOs) and Section 8 companies to establish (i) the dairy processing and value addition infrastructure, (ii) meat processing and value addition infrastructure, (iii) Animal Feed Plant, (iv) Breed Improvement technology and Breed Multiplication Farm (v) Animal Waste to Wealth Management (Agri Waste Management) and (vi) Setting up of Veterinary Vaccine and Drugs Manufacturing facilities.
