Centre Starts Credit Guarantee Scheme For MSMEs Engaged In Livestock

The Ministry of Fisheries, Animal Husbandry and Dairying is implementing the credit guarantee scheme under the animal husbandry infrastructure development fund (AHIDF) to strengthen the credit delivery system and facilitate the smooth flow of credit to the micro, small and medium enterprises (MSMEs) engaged in livestock sector without hassles of collateral security.

For operationalising the scheme, the department of animal husbandry and dairying (DAHD) has established a credit guarantee fund trust of Rs 750.00 crore, which will provide credit guarantee coverage for up to 25 per cent of the credit facilities extended to the MSMEs by the eligible lending institutions.

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 credit guarantee scheme facilitates access to finance for the un-served and under-served livestock sector, making the availability of financial assistance from lenders to mainly first-generation entrepreneurs and underprivileged sections of society, who lack collateral security for supporting their ventures.