Dairy Farm Business Loan

Some of the features and benefits of availing a dairy farm loan are: 

1. You can avail this type of loan for the purpose of modernisation of dairy farm infrastructure. Milk houses, automatic milk collector, dispersal systems, etc are all part of the infrastructure for which the loan money can help in its modernisation. 
2. Most of the lenders do not charge any processing fee on the dairy farm loan availed by you. 
3. The whole process of applying for a dairy farm loan is hassle-free. You can apply for a dairy farming loan online and upload the necessary documents. If you meet the criteria, the amount will be disbursed to your account. 
4. The process for applying for a dairy farm loan is very quick. The paperwork is minimal and all you have to do is duly fill the form and submit it along with the necessary documents. The bank will review the application form and if they are found to meet the criteria laid down by the lender, the amount will be disbursed to your bank account immediately. 
5. One of the advantages of availing this loan is you get to enjoy longer repayment tenure. The repayment tenures offered can range between 3 years and 7 years. 

1. The loan amount that you can avail can be 75% to 85% of the total investment of your dairy farm. 
2. The rate of interest charged is very nominal. 
3. You don’t need any collateral to avail a Dairy Farm Loan. 

Eligibility Criteria for Dairy Farm Business Loan 

The eligibility criteria to apply for a dairy farm business loan are given below: 

1. You must be aged between 24 years and 70 years to avail a dairy farm business loan. 
2. You must have had an existing business for at least 3 years. 
3. You must be a resident of India. 
4. You must maintain a CIBIL score of at least 650. 

Purpose of Availing Dairy Farm Loan

Given below are the reasons for which you can avail a dairy farm loan:

1. To establish a new dairy farm unit or expand an already exisiting dairy farm unit
2. Purchasing of mulch animals for small dairy units
3. For the rearing of young calves and crossbreeding of mulch cows and buffalos
4. To purchase milk machineries such as Bulk Milk Chilling units, automatic milk collection and dispersal systems, milk vans
5. To grow fodder for cattle and meet other capital needs for the smooth functioning of the farm
6. Construction, expansion, or renovation of cattle sheds
7. Cold storage services
8. Dairy marketing outlets
9. Purchasing of dairy dispensation equipment, chaff cutters, etc.
10. Dairy manufactured goods transportation services

Top Banks & NBFC Business Loans for Dairy Farming

SBI KCC for Animal Husbandry and Fisheries 

You can avail this business loan from SBI to establish a dairy farm. This loan can be availed by farmers and dairy farmers who are sole proprietors, joint tenants, joint liability groups, or self-help organisations, as well as tenant farmers who own, rent, or lease sheds.  

The details of this particular business loan are given below: 

Bank of Baroda Scheme for Financing Mini Dairy Units 

Under this scheme you can avail a loan to purchase a minimum of two cows or a maximum of 10 cows where NABARD is thought to have provided the per-animal cost for the state concerned. This scheme aims to help set up a mini dairy farm consisting of anything between 2 to 10 milch animals. Individuals, Farmers, Members of NGOs/SHGs/JLGs can avail this loan from Bank of Baroda. 

The details of this particular business loan are given below: 

Cent Dairy Scheme 

Central Bank of India offers the Cent Dairy Scheme where one can avail a loan from the bank to establish dairy units for themselves. This loan can be availed by farmers, individuals, firms, companies, NGOs, etc. The details of this particular business loan are given below: 

Lendingkart Dairy Farm Business Loan 

If you wish to set up a dairy unit for yourself, you can consider availing a dairy farm business loan from Lendingkart. Farmers, entrepreneurs, NGOs, SHGs, etc. can apply for a dairy farm business loan from Lendingkart.  

The details of the dairy farm business loan by Lendingkart are given below: 

How to Apply for a Dairy Farm Loan Online

It is simple to apply for a loan for a dairy farm. You must select the loan type, fill out an application, and supply the required paperwork before you can proceed. Your account will receive the loan amount shortly after your application has been reviewed and approved. When submitting an online application for a dairy loan, you must have the aforementioned paperwork on hand: 

1. Documents used as identification proof may include, among others, a PAN card, a driver's licence, a voter ID, or an Aadhaar card. 
2. a Ration Card, Aadhaar Card, utility bills, etc. as address evidence. 

1. You might also be required to provide further documentation pertaining to your dairy business, depending on the nature of your application. 

NABARD Dairy Farming Scheme

The National Bank for Agriculture and Rural Development (NABARD) is highly dedicated towards improving all types of agricultural activities. With the goal of bettering dairy farming, the organisation recently launched the Dairy Entrepreneurship Development Scheme (DEDS). This scheme offers financial assistance to those who want to take up dairy farming. It also aims at increasing employment opportunities in modern dairy farms. While applying for financial support through the DEDS from NABARD, you need to ensure that you have not defaulted any of your previous loans.

How to Avail NABARD Subsidy for Dairy Farming 

The actions below should be followed to obtain a NABARD subsidy for dairy farming: 

1.  Choose a dairy company that meets the requirements for a dairy plan subsidy in step one. 
2.  Register your business as a corporation or non-profit organisation. 
3.  Create a thorough business plan you can show a bank or lender. 

1.  Submit an application for bank financing for a dairy business. 
2.  Repay the loan in accordance with the schedule of equivalent monthly installments (EMIs), and the bank will forego the last few EMIs. 
3.  The NABARD reimbursement would be decreased by the reduced EMIs. 

Dairy Business Loans Fees and Charges

Documents Required

The list of documents you will need to apply for a dairy farm loan is:

1. Proof of identity such as PAN Card, Aadhaar Card, voter id, driving license, etc.
2. Proof of address such as utility bills, ration card, Aadhaar Card, etc.
3. Salary slips for past 6 months
4. Passport size photographs
5. Proof of registration of dairy business
6. Property deeds

Dairy Entrepreneurship Development Scheme (DEDS)

The Venture Capital Scheme for Dairy and Poultry was introduced by the Department of Animal Husbandry, Dairying, and Fisheries in 2004. Its main goal was to support independent work, the expansion of small dairy farms, and other sectors of the Indian dairy industry. 

The Dairy Entrepreneurship Development Scheme (DEDS) aims to develop opportunities for independent work in the dairy industry. By providing capital subsidies for workable projects, it covers tasks including purchasing milk, boosting milk production, transportation, milk preservation, marketing, and milk processing. Both organised and unorganised sectors can participate in this program. 

The objectives of DEDS Scheme are given below: 

1. Encouraging the creation of modern dairy farms devoted to milk production. 
2. Modernising and enhancing the application of cutting-edge technologies for managing commercial milk. 
3. Encouraging the development of contemporary dairy farms to make sure that quality milk is produced. 

1. Promoting the upbringing of heifer calves in order to maintain and improve superior breeding stock. 
2. Constructing the required infrastructure and developing independent work opportunities in the unorganised sector. 
3. Increasing the production of premium dairy products and streamlining the processing of milk products. 
4. By establishing basic milk processing at the village level, structural changes in the unorganised sector are being started. 

Loans are made available through the Dairy Entrepreneurship Development Scheme (DEDS), with interest rates that adhere to the standards established by the Reserve Bank of India (RBI). Up until recipients receive their subsidies, banks are permitted to charge interest on the loan amounts. Once the subsidy is applied to the bank loan component (or subtracted from the bank loan), this interest rate is in effect. 

Note: DEDS scheme has been discontinued since 2020-21 due to the non-availability of budget allocation. 

Financial Support Provided by DEDS 

The Dairy Entrepreneurship Development Scheme (DEDS) provides proficient financial assistance to individuals and firms under different categories: 

1. For buying milking machines, chilling machines, and milk testers: If you make an investment of Rs.20 lakh for the above-mentioned purpose, you will receive a subsidy ranging from Rs.5 lakh to Rs.6.67 lakh. 
2. For setting up small dairy units: You will be required to make an investment of Rs.6 lakh for 10 animal units. The minimum size of the unit is 2 animals and the maximum size of the unit is 10 animals. You will then get a subsidy ranging from Rs.1.50 lakh to Rs.1.98 lakh. For a single animal unit, the maximum amount is Rs.15,000 to Rs.20,000. 
3. For rearing Heifer cows: You will need to make an investment of Rs.20 lakh. You will then get a subsidy ranging between Rs.1.37 lakh and Rs.1.83 lakh. The highest permissible subsidy amount is Rs.33,000 for 5 calves. 

1. For buying dairy processing equipment to manufacture milk products: You will have to make an investment of Rs.13.20 lakh. You will receive a subsidy of Rs.3.30 lakh to Rs.4.40 lakh. 
2. For moving of dairy products and for cold chain equipment: You will need to make an investment of Rs.26.50 lakh. You will then get a subsidy of Rs.6.25 lakh to Rs.8.83 lakh. 
3. For cold storage options: You will need to invest an amount of Rs.33 lakh for availing reliable cold storage facilities. Your subsidy will range from Rs.8.25 lakh to Rs.11 lakh. 

Who can Apply for DEDS? 

The Dairy Entrepreneurship Development Scheme (DEDS) can be taken by the following: 

1. Individual entrepreneurs 
2. Farmers 
3. Organisations and firms 
4. NGOs 
5. Self-help groups, Milk Unions, Dairy Co-operative Societies, Milk Federations, etc. 

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