Interest Subvention on working capital loans

The Government of India has extended the component of “Interest Subvention on working capital loans” with a total outlay of Rs. 203 crore to the period from 1st April 2021 to 30th September 2021. 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.