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Livestock Sector Boom: AHIDF’s Credit Guarantee Scheme Leading the Way

There is a world of opportunities and growth in the livestock sector. The Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry, and Dairying has brought forth an exciting Credit Guarantee Scheme under the Animal Husbandry Infrastructure Development Fund (AHIDF). 

This empowering scheme is specifically crafted to uplift farmers, particularly first-generation entrepreneurs and the underprivileged segments of society. Its core objective is to fortify the credit delivery system and offer seamless access to hassle-free credit for Medium, Micro,& Small Enterprises operating in the dynamic Livestock sector.


The Credit Guarantee Scheme under AHIDF is a game-changer for the livestock sector, making it easier for MSMEs to access financial assistance without the burden of collateral security. By establishing a Credit Guarantee fund Trust of Rs. 750.00 crores, the Department of Animal Husbandry & Dairying has taken a significant step towards fostering a conducive environment for entrepreneurs to thrive. The scheme’s main focus is to give paramount importance to the project’s viability and ensure that credit is secured solely based on the primary security of the assets being financed.

Key Points

  1. Access to Finance: The credit guarantee scheme aims to provide much-needed access to finance for the underserved and unserved livestock sector. It opens doors to financial assistance from lenders for first-generation entrepreneurs and those lacking collateral security to support their ventures.
  2. AtmaNirbhar Bharat Abhiyan Stimulus Package: The establishment of the credit guarantee fund trust was approved under the Prime Minister’s AtmaNirbhar Bharat Abhiyan stimulus package, with a focus on incentivizing investments in various livestock infrastructure domains.
  3. Six Focus Areas: The AHIDF scheme encourages investments in critical areas such as dairy processing and value addition infrastructure, meat processing and value addition infrastructure, animal feed plants, breed improvement technology, animal waste to wealth management, and setting up veterinary vaccine and drugs manufacturing facilities.
  4. Credit Guarantee Fund Trust: The pioneering Credit Guarantee Fund Trust has been established through a partnership between DAHD and NABSanrakshan Trustee Private Limited, which is a subsidiary of NABARD. Launched in March 2021, this trust holds the distinction of being the country’s first-ever fund trust under the Credit Guarantee scheme for the agriculture and animal husbandry sector.
  5. Enhancing MSMEs’ Reach: With the establishment of the credit guarantee fund trust, the AHIDF scheme is expected to exponentially increase the number of MSMEs benefiting from collateral-free credit, strengthening the ecosystem for credit from banks.
  6. Rule-based B2B Portal: A user-friendly credit guarantee portal has been developed, streamlining the enrollment of eligible lending institutions, issuance/renewal of Credit Guarantee Cover, and settlement of claims.
  7. Interest Subvention: The AHIDF scheme offers an attractive interest subvention of 3%, making it easier for MSMEs to secure up to 90% of the total project cost from scheduled banks and the National Cooperative Development Corporation (NCDC).


The Credit Guarantee Scheme under the Animal Husbandry Infrastructure Development Fund (AHIDF) is a game-changing initiative that opens new avenues for growth and prosperity in the livestock sector. By facilitating financial assistance to MSMEs, especially first-generation entrepreneurs and the underprivileged, without the burden of collateral security, the scheme strengthens the credit ecosystem and boosts the overall rural economy. Embrace this opportunity and join the league of thriving livestock entrepreneurs!

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