Credit Guarantee Scheme for Livestock Sector
Source: PIB
GS III: Economics of animal-rearing

Overview

1. News in Brief
2. Credit Guarantee Scheme for Livestock Sector
3. Animal Husbandry Infrastructure Development Fund

Why in News ?

To provide collateral-free loans for MSMEs in the livestock industry, the Ministry of Fisheries, Animal Husbandry, and Dairy has established the first-ever Credit Guarantee Scheme under the Animal Husbandry Infrastructure Development Fund (AHIDF).

Details of Credit Guarantee Scheme for Livestock Sector

• Implementing Agency 
  • Department of Animal Husbandry & Dairying (DAHD), Ministry of Fishries, Animal Husbandry and Dairying is implementing

    

    the Credit Guarantee Scheme

  • It is under Animal Husbandry Infrastructure Development Fund (AHIDF)
• What is the Aim?
  • 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.
  • Boost the overall rural economy through strengthening the Livestock sector
• Fund
  • DAHD has established a Credit Guarantee fund Trust.
  • It will provide credit guarantee coverage up to 25% of the credit facilities.
• Who will get the benefits?
  • Finance for un-served and under-served livestock sector.
  • Those who lack collateral security for supporting their ventures.
  • 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.

Credit Guarantee Fund Trust

• NABSanrakshan Trustee Company Private Limited, a wholly owned subsidiary of NABARD.
• It has a fund of of Rs. 750.00 crores.
• Credit guarantee coverage up to 25% of the credit facilities
• Nation’s first ever fund trust under Credit guarantee scheme of AHIDF in the agriculture and Animal Husbandry sector.
• Would exponentially increase the number of MSME units getting benefits of AHIDF scheme.
• Strengthen the ecosystem for the collateral-free credit from the banks.

Animal Husbandry Infrastructure Development Fund

• It is a stimulus package under Atma Nirbhar Bharat Abhiyan.
• Setting up of Rs. 15000 crore.
• Companies
  • Incentivizing investments by individual entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs) and Section 8 companies to establish
    1. Dairy processing and value addition infrastructure
    2. Meat processing and value addition infrastructure
    3. Animal Feed Plant.
• Objectives
  • To help increasing of milk and meat processing capacity.
  • Increased price realization for the producer.
  • Make available quality milk and meat products.
  • Protein enriched quality food requirement.
  • Develop enterpreneurship and generate employment.
  • Increased export of milk and meat sector.
  • Quality animals feed to the cattle, buffalo, sheep, goat, pig and poultry at affordable price.

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