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).

About Credit Guarantee Scheme:

• Objective: The goal is to facilitate credit flow to Micro, Small & Medium Enterprises (MSMEs) in the Livestock sector without the need for collateral security.
• Credit Guarantee Fund:
  • 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.
• Target Beneficiaries:
  • 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.

AHIDF Scheme Features:

• 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.
• Key Features of AHIDF Scheme:
  • Interest Subvention: 3%
  • Loan Up to 90% project cost funding from Scheduled Banks or National Cooperative Development Corporation (NCDC).
• Benefits:
  • 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.

News Source: PIB