Dairy Farming Business Loan
Comprehensive guide to financing your dairy business, including eligibility for individuals and cooperatives, document checklists, and the NABARD subsidy process.
Eligibility Criteria & Eligible Entities
Eligible Entities
- Farmers & Individual Entrepreneurs
- NGOs & Self-Help Groups (SHGs)
- Joint Liability Groups (JLGs)
- Dairy Cooperative Societies
- Private Companies & Startups
General Criteria
- Age: 18 to 65 years
- No history of loan default
- Experience in dairy farming preferred
- Land ownership or valid lease agreement
- Ability to manage cattle & infrastructure
Documents Required
Identity Proof
Aadhar, PAN, Voter ID, or Passport of the applicant.
Address Proof
Utility bills, Ration card, or Aadhar card.
Land Documents
Ownership records, 7/12 extract, or Lease agreement.
Project Report
Detailed business plan including costs, cattle details, & revenue.
Leading Lenders
How to Avail NABARD Subsidy?
Under the Dairy Entrepreneurship Development Scheme (DEDS), subsidies (usually 25% to 33.33%) are available but are routed through banks.
Prepare Project Report
Create a detailed project report for your dairy farm (cattle purchase, shed construction, milking machines) conforming to NABARD norms.
Apply for Bank Loan
Submit the report to a commercial or cooperative bank. The bank must sanction the loan first. NABARD does not lend directly to individuals.
Bank Submits Proposal
Once the loan is sanctioned, the bank uploads the subsidy claim to the NABARD portal on your behalf.
Subsidy Release
NABARD validates the proposal and releases the subsidy to the bank. It is held in a 'Subsidy Reserve Fund Account' and adjusted against the last few EMI installments.