Dairy Farm Business Loan Scheme 2025 – Complete Guide
The Government of India and various banks have launched the Dairy Farm Business Loan Scheme to support farmers, entrepreneurs, and rural youth who want to start or expand a dairy farming business.
The good news is that application forms for the Dairy Farm Business Loan Scheme are now available, making this the perfect time to apply and benefit from government-backed financial support.
Dairy farming is one of the most profitable agri-businesses in India. With rising demand for milk and milk products, this sector offers stable income, employment opportunities, and long-term growth. To make this business accessible to everyone, the government provides loans at affordable interest rates along with subsidies.
This article explains everything you need to know about the Dairy Farm Business Loan Scheme, including eligibility, benefits, subsidy details, documents required, application process, and FAQs.
What is the Dairy Farm Business Loan Scheme?
The Dairy Farm Business Loan Scheme is a financial assistance program designed to help individuals set up or expand dairy farms. Under this scheme, banks provide loans with low interest rates, and eligible applicants can also get government subsidies.
The scheme is mainly implemented through:
- NABARD
- Public sector banks
- Regional Rural Banks (RRBs)
- Cooperative banks
- Scheduled private banks
The loan can be used to purchase:
- Dairy animals (cows/buffaloes)
- Construction of cattle sheds
- Milking machines
- Fodder equipment
- Cold storage and transportation facilities
Why Choose Dairy Farming as a Business?
Dairy farming is considered one of the safest agribusiness options in India. Some major advantages include:
- Daily and assured income
- Low market risk compared to other businesses
- Growing demand for milk and dairy products
- Employment generation in rural areas
- Government support and subsidies
- Suitable for small, medium, and large-scale farmers
With proper planning and financial support through a business loan, dairy farming can become a highly profitable venture.
Key Features of Dairy Farm Business Loan Scheme
Here are the main highlights of the scheme:
- Loan amount based on project cost
- Subsidy up to 25%–50% for eligible categories
- Affordable interest rates
- Long repayment period
- Support for new and existing dairy farmers
- Available for individuals, SHGs, FPOs, and cooperatives
Loan Amount Under Dairy Farm Business Loan Scheme
The loan amount depends on the size of the dairy farm project:
- Small dairy unit: ₹1 lakh – ₹5 lakh
- Medium dairy unit: ₹5 lakh – ₹10 lakh
- Large dairy unit: ₹10 lakh – ₹25 lakh or more
Banks assess the project report before approving the loan.
Subsidy Details (Government Support)
One of the biggest benefits of this scheme is the subsidy component.
Subsidy Structure
- General category: 25% subsidy
- SC/ST/Women beneficiaries: 33%–50% subsidy
The subsidy is credited directly to the loan account and reduces the repayment burden.
Note: Subsidy availability may vary based on state policies and bank guidelines.
Eligibility Criteria for Dairy Farm Business Loan Scheme
To apply for the scheme, applicants must meet the following conditions:
- Applicant must be an Indian citizen
- Age should be between 18 to 65 years
- Farmer, unemployed youth, entrepreneur, or self-employed person
- Basic knowledge or training in dairy farming preferred
- Good credit history (if applicable)
- Should not be a defaulter of any bank
Both new and existing dairy farmers can apply.
Documents Required for Application
Before filling out the application form, keep these documents ready:
- Aadhaar Card
- PAN Card
- Address proof
- Passport size photographs
- Bank account details
- Project report (mandatory)
- Land documents or lease agreement
- Caste certificate (for SC/ST subsidy)
- Income certificate
How to Apply for Dairy Farm Business Loan Scheme?
Since application forms are now available, you can apply using the steps below:
Step 1: Prepare a Dairy Project Report
A detailed project report including:
- Number of animals
- Total investment
- Expected income
- Expenses and profit projection
Step 2: Visit the Nearest Bank
Approach:
- NABARD-linked banks
- Nationalized banks
- Cooperative banks
Step 3: Collect and Fill the Application Form
Fill in all details carefully and attach required documents.
Step 4: Bank Verification
The bank will:
- Verify documents
- Inspect proposed dairy unit
- Evaluate project feasibility
Step 5: Loan Approval & Disbursement
Once approved, the loan amount is disbursed, and subsidy is adjusted later.
Interest Rate and Repayment Period
Interest rate: Depends on bank (generally 7%–12%)
- Repayment period: 5 to 7 years
- Moratorium period: Up to 6 months to 1 year
- Some banks also offer interest subvention for timely repayment.
Training Requirement (If Any)
In some cases, banks may ask applicants to undergo short-term dairy farming training from:
- Krishi Vigyan Kendras (KVKs)
- Dairy development departments
- Recognized training institutes
This increases approval chances.
Common Mistakes to Avoid While Applying
- Incomplete project report
- Incorrect documents
- Overestimated income projections
- Applying without basic dairy knowledge
- Poor credit history
Avoiding these mistakes improves loan approval chances.
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Frequently Asked Questions (FAQ Schema)
Q1. Is the Dairy Farm Business Loan Scheme available in all states?
Yes, the scheme is available across India, but subsidy benefits may vary by state.
Q2. Can unemployed youth apply for this loan?
Yes, unemployed youth with basic dairy farming knowledge can apply.
Q3. Is collateral required for dairy farm loans?
Small loans may not require collateral, but larger loans may.
Q4. How long does loan approval take?
Usually 15–30 working days, depending on bank verification.
Q5. Can women apply for the Dairy Farm Loan Scheme?
Yes, women applicants are encouraged and may get higher subsidies.
Conclusion
The Dairy Farm Business Loan Scheme 2025 is an excellent opportunity for farmers and entrepreneurs to build a sustainable and profitable dairy business. With application forms now available, this is the right time to apply and take advantage of low-interest loans and government subsidies.
Dairy farming not only provides financial stability but also contributes to rural development and employment generation. With proper planning, training, and financial support, this scheme can transform your livelihood.
Call To Action (CTA)
👉 Planning to start a dairy farm?
Visit your nearest bank today and apply for the Dairy Farm Business Loan Scheme before the subsidy benefits change.
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