(THE GIST OF PIB) Credit Guarantee Scheme

(THE GIST OF PIB) Credit Guarantee Scheme


Credit Guarantee Scheme

  • The Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry, and Dairying (DAHD) has introduced the ‘Credit Guarantee Scheme’ under the Animal Husbandry Infrastructure Development Fund (AHIDF) to support the Livestock sector's Micro, Small & Medium Enterprises (MSMEs).

About Credit Guarantee Scheme:

  • It aims to strengthen the credit delivery system and ensure smooth access to finance for entrepreneurs engaged in the Livestock sector.


  • The main objective is to encourage lenders to focus on the viability of projects and provide credit facilities based on the primary security of the assets being financed.
  • By providing access to financial assistance, it promotes investments in various areas of the livestock sector, such as dairy and meat processing, animal feed plants, breed improvement technology, waste management, and veterinary vaccine and drug manufacturing facilities.


  • The DAHD has set up a credit guarantee fund trust of Rs 750 crore, which will cover up to 25 per cent of credit facilities extended to eligible MSMEs by lending institutions.
  • The trust, formed in partnership with NAB Sanrakshan Trustee Company Private Ltd, a subsidiary of NABARD, ensures credit guarantee for MSMEs under the AHIDF scheme.

Key features include:

  • Interest subvention of three per cent
  • Loan of up to 90 per cent of the total project cost from any Scheduled Bank, National Cooperative Development Corporation (NCDC).
  • Who is eligible for the scheme? The scheme targets underserved sections of society, including first-generation entrepreneurs and underprivileged individuals, who often lack collateral security for their ventures.



Study Material for UPSC General Studies Pre Cum Mains

Get The Gist 1 Year Subscription Online

Click Here to Download More Free Sample Material

<<Go Back To Main Page

Courtesy: PIB