Easy Bank Finance & Interest Subsidy for Animal Husbandry under AHIDF!

Are you considering starting a new business in the animal husbandry sector?

Whether it’s in dairy processing, milk processing, animal feed production, breeding farms, veterinary vaccines, drug manufacturing, or agri-waste management, the Animal Husbandry Infrastructure Development Fund (AHIDF) from the Government of India offers tremendous support to entrepreneurs. This article provides a comprehensive guide to AHIDF and explains how you can leverage this scheme to fund and expand your animal husbandry business.

AHIDF Overview The AHIDF scheme, introduced by the Government of India, aims to encourage investment in the animal husbandry sector. This initiative provides financial assistance in the form of subsidies and bank loans, enabling entrepreneurs to establish or expand their businesses in a variety of sub-sectors within animal husbandry. Here’s how it works.

Who Can Benefit from AHIDF?

Entrepreneurs planning new business ventures in dairy processing, milk processing, or animal feed production.
Individuals and organizations interested in veterinary vaccine production or drug manufacturing.
Those considering setting up units for agri-waste management.
Anyone looking to expand an existing business in animal husbandry.

If your business idea aligns with any of the above areas, this video is for you! In this article, we’ll explore the key benefits of AHIDF and how to access them.

What Are the Key Benefits of AHIDF?

The AHIDF scheme offers the following financial benefits:

Subsidized Bank Loan – AHIDF offers financial support in the form of bank loans. The key benefit here is interest subsidy of 3% for up to eight years. This effectively reduces your loan burden and makes financing your business more affordable.
Interest Subsidy – The scheme provides an interest subsidy directly to the business owner’s bank account, making it easier to manage monthly loan payments. The interest subsidy is paid upfront, which means that businesses receive an advance payment for one year’s interest. This upfront subsidy continues annually for the entire eight-year period.
Collateral Security – Often, entrepreneurs face challenges when banks ask for collateral security. With AHIDF, NABSanrakshan Prasthi Private Limited provides credit guarantees for projects eligible under AHIDF, thereby reducing the need for collateral. You can also explore collateral-free funding options under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) if eligible.

Steps to Avail AHIDF Subsidy :

To avail the benefits under AHIDF, follow these steps:

Connect with Your Banker
Once you’ve decided on your business plan, discuss the AHIDF scheme with your banker. Ensure that your project report and required documentation are properly organized. Explain to the bank that your project is eligible for AHIDF and you intend to apply for an interest subsidy under this scheme.
Application Process for AHIDF
Submit your AHIDF application online. Enter your banker’s details for synchronization between the AHIDF application and your bank. Once the application is approved, the proposal will be sent directly to the bank, where your loan application will be processed.
Interest Subsidy Approval
After the bank sanctions your loan, you’ll be eligible for an annual upfront interest subsidy for up to eight years. AHIDF funds the bank directly, ensuring timely interest subsidy payments to your account.
Collateral-Free Loan Option
For those facing difficulties with collateral requirements, AHIDF offers an alternative solution. You can request a credit guarantee under NABSanrakshan Prasthi or CGTMSE, depending on your eligibility and bank policies.

What If You Already Have a Loan?

If your bank loan was sanctioned after June 24, 2020, and your business falls under one of the eligible categories, you may still apply for AHIDF benefits. Connect with your banker to discuss the process and initiate an AHIDF application.

Additional Resources for AHIDF Understanding :

For more information, you can download our comprehensive eBook on AHIDF (available in the video description). The eBook covers all aspects of the scheme and explains in detail how to apply, the documentation required, and how to manage your AHIDF application effectively. This guide will be useful for you and your banker, ensuring a smooth subsidy approval process.