Credit Guarantee Scheme


The Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry, and Dairying (DAHD) has recently introduced the ‘Credit Guarantee Scheme’ as part of the Animal Husbandry Infrastructure Development Fund (AHIDF). The primary objective of this scheme is to extend support to Micro, Small & Medium Enterprises (MSMEs) operating within the Livestock sector.

Main Highlights:

  • The main goals of the Credit Guarantee Scheme is to strengthen the credit delivery system and ensure easy access to finance for entrepreneurs involved in the Livestock sector. Lenders are encouraged to focus on the viability of projects and provide credit facilities based on the primary security of the assets being financed. This approach not only benefits the entrepreneurs but also fosters investments in various areas of the livestock sector.
  • The scheme envisions investments in crucial segments of the Livestock sector, including dairy and meat processing, animal feed plants, breed improvement technology, waste management, and veterinary vaccine and drug manufacturing facilities. By channeling funds into these areas, the Livestock sector is poised for growth and modernization.
  • To facilitate the smooth implementation of the Credit Guarantee Scheme, the Department of Animal Husbandry and Dairying (DAHD) has set up a credit guarantee fund trust amounting to Rs 750 crore.
  • This fund will cover up to 25% of credit facilities extended to eligible Micro, Small, and Medium Enterprises (MSMEs) by lending institutions. The trust has collaborated with NAB Sanrakshan Trustee Company Private Ltd, a subsidiary of NABARD, to ensure credit guarantee for MSMEs operating under the AHIDF scheme.
  • The scheme include an interest subvention of three percent, allowing loans of up to 90% of the total project cost from any Scheduled Bank or the National Cooperative Development Corporation (NCDC). These provisions are designed to ease the financial burden on entrepreneurs and encourage them to take the necessary steps to develop their Livestock businesses.
  • The introduction of the Credit Guarantee Scheme under the Animal Husbandry Infrastructure Development Fund (AHIDF) is a significant step taken by the Department of Animal Husbandry & Dairying to boost the Livestock sector.
  • By providing easier access to finance and promoting investments in critical areas, this scheme is set to empower entrepreneurs and drive the growth and modernization of the Livestock sector.
  • The focus on underserved sections of society, including first-generation entrepreneurs and underprivileged individuals, ensures that the benefits of this scheme are inclusive and far-reaching, contributing to the overall economic development of the country.