Context:
- The Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry, and Dairying is implementing the Credit Guarantee Scheme under the Animal Husbandry Infrastructure Development Fund (AHIDF).
- Objective: The goal is to facilitate credit flow to Micro, Small & Medium Enterprises (MSMEs) in the Livestock sector without the need for collateral security.
- A Credit Guarantee Fund Trust of Rs. 750.00 crores has been established by the Department of Animal Husbandry & Dairying (DAHD).
- It provides credit guarantee coverage of up to 25% of credit facilities extended to MSMEs by eligible lending institutions.
- The scheme supports first-generation entrepreneurs and underprivileged sections of society in the Livestock sector.
- It aims to benefit un-served and under-served segments of the Livestock industry.
- Part of the Prime Minister’s AtmaNirbhar Bharat Abhiyan stimulus package of Rs. 15,000 crores.
- Encourages investments in Livestock infrastructure projects, including dairy and meat processing, animal feed plants, breed improvement, waste management, and veterinary vaccine/drugs manufacturing.
- Interest Subvention: 3%
- Loan Up to 90% project cost funding from Scheduled Banks or National Cooperative Development Corporation (NCDC).
- Enhances credit access for MSMEs in the Livestock sector.
- Strengthens MSMEs and contributes to the development of the rural economy through Livestock sector growth.
- Credit Guarantee Fund Trust under AHIDF Scheme
- One of the key features of the AHIDF scheme is the establishment of a Credit Guarantee Fund Trust of Rs. 750.00 Crores.
- Objective: To extend the credit guarantee to Micro, Small & Medium Enterprises under AHIDF scheme.
- Partnership: DAHD collaborated with NABSanrakshan Trustee Company Private Limited, a wholly-owned subsidiary of NABARD, to set up the Credit Guarantee Fund Trust.
- First of its Kind: This Credit Guarantee Fund Trust is a pioneering initiative in the agriculture and Animal Husbandry sector, marking the nation’s first-ever fund trust under the AHIDF’s Credit Guarantee Scheme.