Credit guarantee scheme launched for MSMEs in livestock sector

New Delhi, July 21 (KNN) The Centre has launched the first-ever “Credit Guarantee Scheme” for the Livestock Sector for rebooting the rural economy by leveraging MSMEs.

The credit guarantee scheme aims to improve access to finance for the underserved livestock sector, enabling financial assistance to be provided to first-generation entrepreneurs and underprivileged sections of society.

For the implementation of the scheme, the Department of Animal Husbandry & Dairying (DAHD) has set up a Credit Guarantee Fund Trust worth Rs 750 crore.

This trust will offer credit guarantee coverage of up to 25 per cent for credit facilities provided to MSMEs by eligible 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.

This initiative enhances the number of MSME units benefiting from the AHIDF scheme and strengthens the ecosystem for collateral-free credit from banks.

Key features of the scheme include-Interest subvention of three per cent and provision of loan of up to 90 per cent of the total project cost from any Scheduled Bank, National Cooperative Development Corporation (NCDC).

DAHD’s initiative is expected to greatly increase the participation of MSMEs engaged in livestock sector leading to increased flow of credit to the sector and strengthen the MSMEs to boost the overall rural economy through strengthening the Livestock sector which is of one of the most potential sector seeking development.  (KNN Bureau)