Dairy Farming Loan

Dairy Farm Business loan is primarily availed by farmers, individuals, firms, and business owners to finance their dairy businesses. Dairy Business Loans can be used for various purposes like the purchase of animals that are related to dairy products, farm construction, milking machines, shed construction, dairy items, farm equipment, chaff cutter, and much more. Several lenders offer business loans for dairy farms or farming at competitive interest rates with easy repayment options. Government loans for dairy farming can be availed by individuals, first-time business owners, farmers, and dairy societies under the NABARD scheme. Further, mentioned are the details of dairy farm loans offered by leading banks and NBFCs along with their eligibility and features.

Eligibility Criteria & Eligible Entities

• Age Criteria: Minimum 18 years and Maximum up to 70 years
• Individuals, entrepreneurs business owners & farmers previously engaged in dairy activities and served dairy sector
• NGOs, Self-help Groups (SHGs), Joint Liability Groups (JLGs), Milk Unions, Cooperative Societies, and Milk Federations are eligible entities
• Applicants with no previous defaults with any financial institutions

Features:

• Interest Rate: Shall vary from lender to lender and depend on the applicant’s profile and the nature of business
• Loan Amount: Based on the project and business requirements
• Used for purposes like the purchase of equipment, vehicles, storage facilities, chilling units, milk collection infrastructure, etc.
• Repayment Tenure: Up to 7 years
• Project cost: Up to 85% is funded by lenders
• Hassle-free loan process with less paperwork
• Instant loan approvals and disbursals

How to avail NABARD Subsidy for Dairy Farming?

To get a NABARD subsidy for Dairy Farming, the applicant needs to follow the below-mentioned steps:

Step 1: Decide on a suitable dairy activity that falls under the dairy scheme as is eligible for a subsidy

Step 2: Get your business registered as a type of company or an NGO

Step 3: Prepare a business plan to present it to the bank or lender

Step 4: Apply for a bank loan for your dairy business

Step 5: Repay the loan on time in the form of EMIs and the last few EMIs will be waived off by the bank.

Step 6: The waived off EMIs shall get adjusted against NABARD subsidy