Goat Farming Loan

Purpose of Goat Farming Loan

Goat farming loans can be used for purposes like land purchase, shed construction, buying goats, purchasing feed, etc. The government has initiated various new schemes and launched subsidies for entrepreneurs to start goat farming businesses. Some of the leading banks & Govt. initiated loan schemes introduced to start goat farming businesses include the following:

Loan Schemes for Goat Farming

1. Goat Farming Loans from SBI

The interest rate and loan amount for goat farming shall depend on the business requirements and the applicant's profile. The applicant should present a well-drafted goat farming business plan that should contain all the necessary business details like area, location, goat's breed, equipment used, working capital invested, budget, marketing strategies, details of workers, etc. After the applicant qualifies the eligibility criteria, then SBI shall sanction loan amount as per the requirement for commercial goat farming. SBI may ask to submit the land papers as collateral.

Features of loan for KCC for Animal Husbandry & Fisheries including Goat Farming

• Interest Rate: 7% p.a. (Fixed) as per Govt. of India directives
• Loan Amount: Minimum No ceiling and maximum Rs. 2 lakh for new applicants and Rs. 3 lakh for animal husbandry
• Type of Facility: Farm Credit - Agriculture
• Margin: No separate margin need to be insisted
• Repayment: 5 years with Annual renewal

Note: If the loan is not repaid on the due date, the interest rate will be linked to 1 Year MCLR + Spread as determined by SBI from time. SBI 1-Year MCLR is 8.50%. (Present interest rate: One Year MCLR 8.50% + 3.25% i.e. 11.75% p.a.)

Eligibility Criteria

Farmers, Poultry farmers are either Individual or joint borrowers, Joint Liability Groups, or Self Help Groups (SHGs) that include Tenant farmers of goats having owned, rented, or leased sheds.

2. Loans under NABARD for Goat Farming

National Bank for Agriculture and Rural Development’s (NABARD’s) prime focus regarding goat farming is to support small and medium farmers to enhance the production of livestock farming which shall eventually result in increased employment opportunities.

NABARD offers goat farming loans with the help of various financial institutions, such as

• Commercial Banks
• Regional Rural Banks
• State Cooperative Agriculture and Rural Development Banks
• State Cooperative Banks
• Urban Banks
• Other financial entities eligible for refinancing from NABARD

3. Canara Bank's Sheep and Goat Rearing Loans

Canara Bank also provides Sheep and Goat rearing loans to its customers at competitive interest rates. The loan can be availed for the purpose of the purchase of goats suited to a specific area for rearing.

Features:

Purpose:

• For the purchase of sheep suitable to the area and the construction of a stall for housing the animal
• For the purchase of goats suited to the area for rearing either under stall or free grazing conditions

Margin: Loans Up to Rs 1 lakh - NIL, Loans above Rs 1 lakh - 15-25%

Security:

• Up to Rs 1 lakh - Hypothecation of assets created out of bank loan,
• Above Rs 1 lakh - Hypothecation of crops/assets created from our finance and mortgage of landed properties.

Repayment Tenure:

• For sheep: Within 5 years with a gestation period of 12 months to 18 months by half-yearly/yearly installments from the sale proceeds of progeny
• For goat: Within 4-5 years by quarterly/half-yearly installments inclusive of a gestation period of 12 months.

Note: A certificate from Dept of Animal Husbandry/Forest Department recommending goat rearing in the area.

4. Loans from IDBI Bank for Goat & Sheep Rearing

IDBI Bank offers business loans for sheep and goat rearing under its scheme 'Agriculture Finance Sheep & Goat Rearing'. The loan amount offered by IDBI bank for sheep and goat rearing is a minimum of Rs. 50,000 and the maximum is up to Rs. 50 lakh. This loan amount can be availed by individuals, groups, limited companies, Shepard co-op society, and entities that are engaged in this activity.

5. Mudra Loans under PMMY for Goat Farming

As goat farming falls under the farming sector, therefore loans for goat farming shall not be provided by banks under the Micro Units Development and Refinance Agency MUDRA loan scheme launched under Pradhan Mantri Mudra Yojana (PMMY). Mudra with the help of banks offers loans of the amount up to Rs. 10 lakhs to individuals and enterprises engaged in the non-farming sector income-generating activities in the services and manufacturing sectors. There is no collateral/security required by the bank/lender and the loan amount can be repaid within 5 years, with nil to nominal processing fees. However, the state and central governments have launched various loan schemes and subsidies to promote goat farming.

What types of banks are eligible to offer loans under NABARD?

Types of Banks that are eligible to offer loans under the NABARD scheme are as follows:

• Nationalized Banks
• Commercial Banks
• Regional Rural Banks
• State Cooperative Banks
• Urban Banks
• State Co-operative Agriculture
• Rural Development Banks

Which breed should I choose for goat farming?

You can opt for a breed that suits your business requirements from the following:

• Milk Goat
• Goat for Snuggling
• Mini Goat
• Dinner Goat
• Backyard Goat