1. Types of Loans Available for Animal Husbandry
Farmers can get loans for:
- Dairy Farming (Cows & Buffaloes)
- Goat and Sheep Farming
- Poultry, Pig, Rabbit Farming, etc.
These loans are usually covered under the Kisan Credit Card (KCC) scheme, NABARD refinance schemes, or directly through banks under Agriculture & Allied Activities.
2. Eligible Farmers
You can apply if you are:
✅ A small or marginal farmer
✅ An individual farmer, Self Help Group (SHG), or Joint Liability Group (JLG)
✅ Tenant farmers or sharecroppers (in some banks)
✅ Existing dairy, goat, or sheep farm owners looking to expand
3. Loan Amount
- Minimum: ₹50,000 – ₹2 lakh (small scale farms)
- Maximum: Up to ₹25 lakh (for large/commercial farms)
- Loan covers purchase of animals, shed construction, fodder cultivation, feed cost, equipment, etc.
4. Interest Rate & Subsidy
- Interest rate: Around 7–10% per annum (varies by bank)
- Under Kisan Credit Card (KCC): Effective rate can be 4% (with government interest subsidy if repayment is on time).
- NABARD & Central/State Government Subsidies: Some schemes provide 25–35% subsidy for animal husbandry projects (higher subsidy for SC/ST, women, and northeastern states).
5. Documents Required
- Aadhaar Card & PAN Card
- Land ownership proof / Lease agreement (if tenant farmer)
- Bank account details
- Project report (sheep/goat/cow farming business plan with expected income/expenses)
- Caste/Category certificate (if subsidy applicable)
- Past loan repayment record (if any)
6. Steps to Apply for Loan
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Step 1: Prepare a Project Report
- Number of animals you want to purchase
- Cost of shed, fodder, and equipment
- Expected milk/meat production and income
- Repayment plan
Step 2: Approach a Bank
- Visit any nationalized bank (SBI, Canara, PNB, Bank of Baroda, etc.) or rural cooperative bank.
- Apply under Kisan Credit Card (KCC) or Agriculture Term Loan category.
Step 3: Submit Documents & Project Report
- Bank will verify land records, ID, and project feasibility.
Step 4: Loan Sanction
- For small loans (up to ₹1.6 lakh): usually no collateral needed.
- For loans above ₹7.5 lakh: collateral/security may be required.
- Insurance of animals is compulsory.
Step 5: Subsidy Application
- If eligible, apply for NABARD subsidy through the bank.
- Subsidy is released after verification of farm setup.
7. Key Government Schemes Supporting Animal Husbandry Loans
- Kisan Credit Card (KCC) for Animal Husbandry – Covers loans for cows, goats, and sheep.
- Dairy Entrepreneurship Development Scheme (DEDS) – Subsidy up to 25–33%.
- National Livestock Mission (NLM) – Support for goat and sheep farming.
- NABARD Dairy & Animal Husbandry Schemes – Provides refinance to banks.
8. Tips for Farmers
- Always insure your animals (mandatory for loan approval).
- Maintain proper records of milk/meat sales.
- Repay on time to get interest subvention (lower interest).
- Women, SC/ST farmers get higher subsidies.
- Approach local Krishi Vigyan Kendra (KVK) or NABARD office for project report guidance.
