Dairy Farm Loan in India
Starting or expanding a dairy farm requires a good amount of investment. Many farmers face financial challenges when it comes to purchasing cattle, building sheds, or arranging feed and equipment. In such situations, dairy farm loans become a reliable option. With low-interest rates and government-backed subsidies, these loans can ease financial stress and help farmers grow their dairy businesses.
In this blog, we’ll cover everything you need to know about dairy farm loans in India—eligibility, loan process, subsidy schemes, required documents, and how to apply successfully.
Why Choose a Dairy Farm Loan?
A dairy loan helps farmers:
Arrange funds for starting a new dairy farm or expanding an existing one.
Purchase cattle, construct sheds, and set up equipment.
Avail government subsidies that reduce repayment burden.
Get funds at comparatively lower interest rates.
Eligibility for Dairy Farm Loan
Before applying, farmers must fulfill some basic requirements:
Land Ownership – At least 1.5 to 2 acres of land (or 2 bigha minimum) should be in the applicant’s name.
Good Credit History – The applicant must not be a bank defaulter and should maintain a proper CIBIL score.
Source of Income – Banks check if the farmer has a regular income source, ensuring repayment capability.
No Pending Loan Defaults – Farmers should not have unpaid loans with any bank.
👉 Meeting these conditions increases the chances of loan approval.
Where to Apply for Dairy Farm Loan?
Loans can be availed in two ways:
1. Direct Bank Loan (Private Loan)
Applied directly through banks.
Faster process but no subsidy benefit.
2. Government Subsidy Loan
Comes under different government schemes.
Provides subsidy (partial loan waiver).
Application process involves veterinary hospitals, block offices, and banks.
Step-by-Step Process to Get a Dairy Loan with Subsidy
Visit your local government veterinary hospital or block-level animal husbandry office.
Ask about the current government schemes for dairy farm loans.
Collect and fill out the application form provided by the veterinary officer.
Attach required documents (land papers, ID, income proof, etc.).
Get the form signed by your Panchayat head (Sarpanch/Minister).
Submit the verified form to the District Animal Husbandry Office.
Once verified, the file is forwarded to the bank.
The bank checks documents, income proof, and repayment capacity.
After approval, the loan is sanctioned within 2–3 months.
Major Dairy Farm Loan Schemes in India
1. Rashtriya Gokul Mission (Central Government Scheme)
Online scheme supported by the Central Government.
Provides loans up to ₹1 crore.
Offers 50% subsidy.
Farmers without sufficient property can form a committee (samiti) to apply collectively.
2. Acharya Vidyasagar Gosamvardhan Yojana (Madhya Pradesh Government)
State-level offline scheme in Madhya Pradesh.
Loan up to ₹10 lakh.
Provides 35% subsidy.
Example: If you take a ₹1 lakh loan, ₹35,000 is waived, and you repay only ₹65,000 + interest.
Tabelawala Cattle Loan for Farmers
Apart from government schemes, private companies like Tabelawala also provide financial support to farmers for dairy farming. Tabelawala specializes in cattle financing and offers loans specifically to help farmers purchase high-quality cattle for their dairy farms.
Interest Rate: 11.10% per annum
Purpose: Purchase of new cattle or expansion of existing dairy farms
Application Process: Farmers can directly contact Tabelawala to apply for the loan without relying on government schemes.
This option is particularly useful for farmers who want faster access to funds and do not require a government subsidy. By availing this loan, farmers can quickly expand their herd and improve dairy production.
👉 Farmers outside Madhya Pradesh can check with their local veterinary offices for state-specific schemes.
Required Documents for Dairy Loan
Identity proof (Aadhar, PAN, Voter ID).
Land ownership papers.
Income proof or bank statement.
Application form from veterinary department.
Panchayat or local authority verification.
Key Benefits of Dairy Farm Loan
Easy access to funds for cattle purchase & farm setup.
Government subsidy reduces repayment pressure.
Low-interest rates compared to personal loans.
Helps rural farmers improve livelihood and income.
Conclusion
A dairy farm loan with government subsidy is one of the best ways to start or expand a dairy business in India. By fulfilling eligibility criteria, keeping documents ready, and applying through the right process, farmers can access funds smoothly. Schemes like Rashtriya Gokul Mission and Acharya Vidyasagar Gosamvardhan Yojana are highly beneficial for those planning to enter the dairy sector.
If you’re planning to set up or grow your dairy farm, take advantage of these loan options and government support to secure a better future in dairy farming.
What is the interest rate of dairy farm loans in India?
Most government dairy farm loans come with subsidized interest rates, while private companies like Tabelawala provide cattle loans at 11.10% interest.
How much loan can I get for a dairy farm?
Depending on the scheme, farmers can get loans from ₹1 lakh to ₹1 crore. For example, Rashtriya Gokul Mission provides up to ₹1 crore, while state-level schemes like Acharya Vidyasagar Gosamvardhan Yojana offer up to ₹10 lakh.
Do I get subsidy on dairy farm loans?
Yes, under government schemes, subsidies range between 25% to 50%. For example, Gokul Mission offers 50% subsidy, while Madhya Pradesh’s Gosamvardhan Yojana provides 35% subsidy.
What are the eligibility requirements for a dairy farm loan?
Minimum 1.5–2 acres of land (or 2 bigha)
Good credit/CIBIL score
Not a loan defaulter
Income source proof
How long does it take for a dairy loan to be approved?
Usually, the process takes 2–3 months after submission of all documents and verification.
Can I take a loan from Tabelawala for cattle purchase?
Yes, Tabelawala provides cattle loans to farmers at 11.10% interest rate for purchasing cows, buffaloes, or expanding their dairy farm.
App Downloads
Advisor’s Team
Social Media Reach
Happy Customers
Subscribe To Our Newsletter
Welcome to TabelaWala, brand name of White Gold Livestock Private Limited, the ultimate marketplace for dairy farmers looking to buy or sell cows and buffaloes online as well as offline.
+91 830 570 6703
Got Questions? Call us 24/7
Working Hours
10:00 pm – 05:45 pm
