Interest Subvention on working capital loans

The component of “Interest Subvention on working capital loans” with a total outlay of Rs. 100 crore for supporting the Producer Owned Institutions such as Milk Unions, Milk Federations, Farmer Owned/ Milk Producer Companies to overcome problems being faced due to COVID19 has been approved by Government of India for the year 2020-21. The scheme will be implemented by Department of Animal Husbandry and Dairying (DAHD), Government of India through NDDB.

Under this provision, 2% per annum interest subvention 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.