AHIDF: Unlock Growth Opportunities for Your Business

Are you involved in the animal sector, whether it be animal husbandry, dairy farming, milk processing, or any related field such as veterinary services, drug manufacturing, or animal breeding? If you’re considering expanding your business in any of these areas or planning to launch a new venture, you must be aware of the Animal Husbandry Infrastructure Development Fund (AHIDF)—a game-changer for entrepreneurs in the animal sector.

The Government of India has introduced the AHIDF specifically to encourage growth and development in the animal husbandry and milk processing industries. This fund can provide much-needed financial support to businesses looking to modernize, expand, or initiate new projects. Here’s a breakdown of how the AHIDF can benefit you and help you take your business to the next level.

What is the AHIDF?

The Animal Husbandry Infrastructure Development Fund (AHIDF) is a financing facility aimed at promoting investment in the dairy and livestock sector. It was introduced by the Ministry of Fisheries, Animal Husbandry, and Dairying to help create infrastructure in animal husbandry and allied industries. The fund is structured to encourage entrepreneurship in areas such as milk processing, meat processing, animal feed plants, breed farms, and even residue management projects such as organic manure production and bio-waste management.

Key Features of AHIDF :

Interest Subsidy: One of the most attractive features of AHIDF is the 3% interest subsidy provided for up to 8 years. This makes it easier for businesses to secure loans at lower interest rates, reducing the financial burden significantly.
Collateral-Free Funding: AHIDF offers collateral-free loans for eligible projects, with loan amounts covering up to ₹2 crore. This is a significant benefit for small and medium businesses that may struggle with providing collateral.
No Upper Limit on Loan Amounts: The AHIDF does not impose an upper limit on the loan amount. Whether your project requires ₹2 crore or ₹15 crore, the fund can cater to your needs based on eligibility.
Security Relaxation: AHIDF provides security relaxation through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), making it easier to access credit.
Wide Range of Eligible Projects: The fund supports a broad range of projects in the animal sector, including:

- Milk processing units
- Dairy farming
- Veterinary drug manufacturing
- Meat processing units
- Animal feed plants
- Bio-waste management units
- Machinery and equipment for animal-based industries

How Can AHIDF Help Your Business?

If you are planning to start a business in the animal sector or expand your current operations, the AHIDF can be the perfect financing solution for you. With its low-interest loans, collateral-free funding, and flexible loan amounts, you can secure the necessary capital to fund your project, modernize infrastructure, or purchase new equipment.

Steps to Apply for AHIDF :

Here’s a simplified process to help you avail of the AHIDF benefits:

Identify Your Project: Ensure your project falls under the categories eligible for AHIDF funding—whether it’s milk processing, veterinary services, or waste management in the animal sector.
Prepare Required Documents: Create a project report detailing your business plan, loan requirements, and financial projections. Proper documentation is crucial for approval.
Connect with Your Bank: Approach a bank that participates in the AHIDF scheme. Share the details of your project and discuss your funding requirements.
Apply for the Loan: Submit your project report and loan application to the bank. Make sure to mention that you are applying under the AHIDF scheme to receive the interest subsidy and other benefits.
Interest Subsidy and Benefits: Once your loan is approved, you can claim the 3% interest subsidy for up to 8 years and enjoy collateral-free funding options up to ₹2 crore.