Dairy Loan

A Dairy Loan provides financial assistance to individuals, farmers, and entrepreneurs engaged in dairy farming, milk production, or allied activities. These loans help in purchasing cattle, building infrastructure, setting up processing units, and managing working capital. Supported by government and private financial institutions, dairy loans promote rural development, self-employment, and sustainable livestock growth.

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    Types Of Dairy Loan

    Dairy loans are available for various purposes depending on the nature and scale of dairy operations:

    Cattle Purchase Loan

    For buying high-yielding milch animals such as cows and buffaloes.

    Dairy Farm Infrastructure Loan

    For constructing sheds, purchasing milking machines, and setting up feed storage units.

    Milk Processing & Chilling Unit Loan

    For establishing small-scale processing or chilling plants to maintain product quality.

    Working Capital Loan

    For managing operational expenses like feed, medicine, transportation, and labor costs.

    Dairy Equipment Loan

    For purchasing automatic milking machines, bulk coolers, and packaging units.

    Dairy Expansion Loan

    For farmers or entrepreneurs looking to scale up their existing dairy business.

    Why Dairy Loan Is Important?

    Eligibility Criteria

    Farmers, dairy entrepreneurs, cooperatives, and companies involved in milk production or processing can apply.

    Documents Required

    KYC proof, business plan, land ownership documents, quotations for equipment, and cattle purchase details.

    Government Schemes

    Loans under NABARD’s Dairy Entrepreneurship Development Scheme (DEDS) and Animal Husbandry Infrastructure Development Fund (AHIDF) offer subsidies.

    Interest Rate & Repayment

    Rates vary by bank but usually range between 8%–12%, with flexible repayment up to 7 years.

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    FAQs

    What is a Dairy Loan?

    A Dairy Loan is financial support provided by banks and government schemes to establish, expand, or modernize dairy farming and milk processing units.

    Farmers, self-help groups (SHGs), dairy cooperatives, and entrepreneurs engaged in milk production or processing can apply.

    It varies by bank and project size, but can range from ₹50,000 for small farmers to ₹50 lakh or more for commercial dairy setups.

    Yes, schemes like NABARD’s DEDS and AHIDF provide capital subsidies ranging from 25% to 33.33% for eligible beneficiaries.

    Applicants need KYC documents, a detailed project report, quotations for cattle/equipment, and land or lease documents.

    Depending on the bank and project type, loan approval may take 10–30 working days after submitting all necessary documents.