dairy : In a country like India, where agriculture and livestock play a crucial role in the rural economy, dairy farming is emerging as one of the most profitable and sustainable business options. To support this growing industry, various public and private sector banks, along with government schemes like NABARD and Animal Husbandry Infrastructure Development Fund (AHIDF), are offering dairy farming loans with low interest rates and flexible repayment terms.
If you’re planning to start a new dairy business or expand your existing dairy farm, this detailed blog will guide you step-by-step on how to apply online for a dairy farming loan in 2025, eligibility criteria, required documents, benefits, interest rates, and much more.
🐄 Why Choose Dairy Farming in 2025?
Dairy farming offers steady income through milk production and related activities like cow dung composting, biogas, and sale of calves. Here’s why it’s a good time to start:
- High demand for milk and dairy products
- Government subsidies and loan support
- Modern technology and cold storage facilities
- Training and technical support through rural development programs
This makes it an ideal opportunity, especially for small and marginal farmers.
🏦 What is a Dairy Farming Loan?
A Dairy Farming Loan is a type of agriculture loan provided by banks and financial institutions to help individuals set up or improve their dairy business. The loan amount can be used to:
- Purchase milch animals (cows, buffaloes)
- Build or expand cattle sheds
- Buy chaff cutters, milking machines, and cold storage units
- Improve feed and fodder production
- Set up milk collection centers
Most loans fall under priority sector lending, which means lower interest rates and government subsidy options.
✅ Eligibility Criteria for Dairy Farming Loan
Each bank may have slightly different rules, but common eligibility includes:
- Age: 18–65 years
- Nationality: Indian resident
- Occupation: Farmer, agri-entrepreneur, SHG, FPO, or cooperative society
- Land Ownership: Not always necessary, but preferred for larger loans
- CIBIL Score: 650+ (for bank loans)
- Business Plan: A basic dairy business plan is required by most banks
If you are applying under a government scheme like NABARD, you’ll also need to register with your local animal husbandry department.
📄 Documents Required to Apply Online
To apply for the loan, you will need the following:
- Aadhaar card / PAN card
- Bank passbook copy
- Land ownership proof (if applicable)
- Dairy business project report
- Recent passport-size photographs
- Quotation for milch animals or equipment
- Income certificate or ITR (if applicable)
- Caste certificate (for SC/ST/OBC applicants availing subsidy)
🌐 How to Apply for Dairy Farming Loan Online – Step by Step
Step 1: Choose the Right Bank or Scheme
Some popular banks that offer dairy loans are:
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- Bank of Baroda
- NABARD-supported cooperative banks
- Gramin banks and RRBs
Check the eligibility, interest rate, and application process on their official websites.
Step 2: Prepare Your Dairy Farm Business Plan
Make a simple plan that includes:
- Number and type of animals
- Daily milk production estimate
- Cost of setup and expected income
- Marketing strategy
Step 3: Visit the Bank’s Official Portal
- Go to the bank’s agriculture loan section
- Choose “Animal Husbandry” or “Dairy Farming Loan”
- Click on “Apply Online”
Step 4: Fill the Online Application
- Enter your personal details, contact information, and Aadhaar/PAN
- Upload scanned copies of required documents
- Mention the loan amount and purpose
- Submit your dairy project report
Step 5: Wait for Verification and Approval
Once submitted, the bank or lending institution will verify:
- Credit history
- Land and document authenticity
- Business feasibility
You’ll receive updates via SMS or email.
Step 6: Loan Sanction and Disbursement
If everything is in order, the loan is approved and the funds are transferred directly to your bank account or to the seller (in case of equipment or animal purchase).
📉 Interest Rate and Repayment Terms (2025)
| Bank Name | Interest Rate (Approx.) | Repayment Tenure |
|---|---|---|
| SBI | 7% to 9% | 3 to 7 years |
| PNB | 8% to 10% | 3 to 5 years |
| NABARD Subsidy Loan | 5% to 7% after subsidy | Up to 7 years |
| Gramin Bank | 6.5% to 9% | 5 years |
Subsidies under NABARD can cover 25%-33% of the loan amount depending on the applicant’s category (General/SC/ST/Women).
🧾 Benefits of Dairy Farming Loan Online
- Quick approval with minimal paperwork
- Subsidy support through schemes like NABARD and AHIDF
- No collateral for small-ticket loans under ₹1.6 lakh
- Boost to rural employment and income
- Financial freedom for women SHGs and small farmers
🗓️ Important Tips Before Applying
- Always check your credit score before applying
- Prepare a clear and practical business plan
- Apply for subsidy at the district animal husbandry office along with the loan
- Compare loan offers from multiple banks to get the best rate
- Use the loan strictly for dairy-related expenses to avoid misuse or loan rejection
🔚 Conclusion: A Golden Opportunity for Rural Entrepreneurs
With rising demand for milk and milk-based products, dairy farming offers a profitable and sustainable livelihood option. Thanks to digitization and supportive policies, applying for a dairy farming loan online in 2025 is easier than ever.
Whether you’re a small farmer, woman entrepreneur, or rural youth — this could be your path to financial independence.