Interest Subvention on working capital loans

The Government of India introduced the component of “Interest Subvention on working capital loans” with an outlay of Rs. 203 Crore during 2020-21. GoI has now extended same for the period of 2021-22 to 2025-26 with an outlay of Rs. 500 Crore. Presently , the GoI has issued  Administrative Approval of the  scheme for the year 2023-24. Producer Owned Institutions -  such as Milk Unions , Milk Federations , Farmer Owned / Milk  Producer Companies - may avail benefit of interest  subvention under  the  scheme to overcome liquidity  problems being faced due to COVID19. The scheme is being implemented by Department of Animal Husbandry  and  Dairying (DAHD), Government of India through NDDB.

Under this component, interest subvention @2% per annum on secured/unsecured working capital loans shall be provided to the eligible organisations. For prompt and timely repayment, additional 2% interest subvention will be payable at the end of the loan repayment period.