How to Take Farmer Loan up to ₹25 Lakh for Sheep, Goat, and Cow Farming in India
fsrming loan Livestock farming plays a vital role in India’s rural economy. Sheep rearing, goat farming, and dairy cow farming are among the most profitable agricultural activities. Farmers who wish to expand their livestock units often need financial support. To meet this demand, the Government of India and various banks provide farmer loans up to ₹25 lakh under agricultural and livestock financing schemes. These loans are designed to help farmers purchase animals, build sheds, buy feed, and cover other farm-related expenses.
This article explains in detail eligibility, schemes, application process, required documents, interest rates, subsidies, and repayment terms for obtaining loans for sheep, goat, and cow farming in India.
Importance of Livestock Loans in India
- Livestock contributes to more than 25% of the agricultural GDP.
- Sheep and goat farming provide meat, wool, and milk, while cow farming ensures continuous milk supply.
- Demand for organic milk and goat meat is increasing, making this sector profitable.
- Government policies encourage farmers to take loans to expand livestock units and reduce unemployment.
Loan Schemes Available for Sheep, Goat, and Cow Farming
1. NABARD Livestock Loan Schemes
The National Bank for Agriculture and Rural Development (NABARD) refinances banks to provide loans for livestock rearing.
- Loans can go up to ₹25 lakh depending on project cost.
- Subsidy available under specific schemes like NABARD Dairy Entrepreneurship Development Scheme (DEDS).
- Beneficiaries: Individual farmers, Self-Help Groups (SHGs), and Farmer Producer Organizations (FPOs).
2. Kisan Credit Card (KCC) for Animal Husbandry
- Extended to cover livestock and fisheries.
- Provides short-term credit for feed, medicines, and other recurring expenses.
- Maximum limit depends on farm size, but farmers with a good record can combine with term loans for up to ₹25 lakh.
3. Pradhan Mantri Matsya Sampada and Allied Schemes
Although primarily for fisheries, some integrated rural development schemes support goat and sheep units when linked with allied activities.
4. Dairy Farming Loans (Cow Farming)
Commercial banks like SBI, Canara Bank, HDFC Bank, and cooperative banks provide dairy loans.
- Loan includes cost of cows, construction of cattle sheds, feed storage, and working capital.
- Repayment period is usually 5 to 7 years.
5. State Government Animal Husbandry Subsidy Programs
Many states (Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Uttar Pradesh, Bihar, etc.) run livestock subsidy programs.
- Farmers can get 25% to 50% subsidy for purchasing animals.
- Special subsidy for SC/ST and women farmers.
Loan Amount and Subsidy Structure
| Activity | Loan Limit | Subsidy (%) | Repayment |
|---|---|---|---|
| Sheep Farming (100–200 sheep) | ₹10–15 lakh | 25–33% (varies by state) | 5–6 years |
| Goat Farming (50–200 goats) | ₹5–12 lakh | 25–40% | 5–7 years |
| Dairy Cow Farming (10–20 cows) | ₹15–25 lakh | 25–33% | 7 years |
| Integrated Farm (Sheep + Goat + Cows) | Up to ₹25 lakh | 25–50% | 7–10 years |
Eligibility Criteria
- Applicant must be an Indian citizen engaged in farming.
- Age: 18 to 65 years.
- Should own or lease land for animal rearing.
- Should have experience in animal husbandry (preferred).
- Must have a project report showing expected income and expenditure.
Documents Required
- KYC Documents: Aadhaar Card, PAN Card, Voter ID.
- Land Ownership Proof / Lease Agreement.
- Caste Certificate (if applying for subsidy benefits under SC/ST).
- Bank Account Details & Passbook.
- Livestock Project Report approved by veterinarian/extension officer.
- Quotations for shed construction or purchase of animals.
Interest Rates and Repayment
- Interest Rate: Generally ranges between 7% and 11% per annum.
- Subsidy Effect: Effective interest rate reduces after subsidy.
- Repayment Period: 5–10 years with grace period of 6–12 months.
- Mode of Repayment: Monthly, quarterly, or half-yearly installments.
How to Apply for a Farmer Loan for Sheep, Goat, or Cow Farming
Step 1: Prepare a Project Report
- Mention number of animals, cost of feed, medicines, shed construction, and expected income.
- Include a repayment plan.
Step 2: Visit the Nearest Bank
- Approach banks like SBI, Canara Bank, Indian Bank, Union Bank, Bank of Baroda, or cooperative banks.
- Ask for agriculture and allied sector loan forms.
Step 3: Submit Documents
- Provide KYC, land papers, quotations, and project report.
Step 4: Bank Verification
- Bank officers may visit your farm to verify land and facilities.
Step 5: Loan Sanction
- Once verified, the bank sanctions loan up to ₹25 lakh depending on eligibility.
Step 6: Avail Subsidy (if applicable)
- Apply through NABARD/state animal husbandry department.
- Subsidy is credited directly to your loan account.
Tips for Farmers Before Taking Loan
- Always consult veterinary doctors to design farm plan.
- Ensure availability of fodder, water, and veterinary services nearby.
- Take insurance for animals to cover risks like death or disease.
- Maintain proper income and expense records to ensure smooth repayment.
- Consider joining Farmer Producer Organizations (FPOs) for collective benefits.
Benefits of Livestock Loan
- Helps farmers start or expand animal husbandry business.
- Provides financial security and reduces dependence on moneylenders.
- Encourages women farmers and rural youth to take up self-employment.
- Ensures food security by increasing milk and meat production.
Challenges Faced by Farmers in Loan Process
- Lack of awareness of schemes.
- Difficulty in preparing detailed project reports.
- Delays in subsidy release.
- Limited availability of veterinary infrastructure in rural areas.
Government Support and Future Prospects
The Government of India is focusing on Doubling Farmers’ Income by 2030. Livestock plays a crucial role in this mission. With Digital Kisan Credit Cards, online loan portals, and DBT subsidy transfers, it has become easier for farmers to access loans up to ₹25 lakh for sheep, goat, and cow farming.
Here is a small and simple table with state, scheme name, and official links for farmer loans up to ₹25 lakh for sheep, goat, and cow farming:
| State | Scheme Name | Official Link |
|---|---|---|
| All India | NABARD Dairy Entrepreneurship Scheme | nabard.org |
| Karnataka | Ksheera Bhagya & Animal Husbandry Loans | ahvs.karnataka.gov.in |
| Telangana | Sheep Distribution & Farmer Loan Scheme | tsobmms.cgg.gov.in |
| Andhra Pradesh | YSR Sunna Vaddi Panta Runalu (Agri Loan) | ap.gov.in |
| Tamil Nadu | Tamil Nadu Free Cattle & Loan Subsidy | tndahd.tn.gov.in |
| Maharashtra | Baliraja Animal Husbandry Loan Scheme | maha.gov.in |
👉 These links take you directly to official portals where farmers can check eligibility and apply.
Sheep, goat, and cow farming are profitable ventures in India. Farmers can easily get loans up to ₹25 lakh under NABARD, Kisan Credit Card, and commercial bank schemes. With subsidy support, low interest rates, and government backing, livestock loans provide a sustainable way for farmers to grow their income.
By preparing a proper project report, submitting the necessary documents, and applying through nationalized or cooperative banks, farmers can establish or expand their livestock farms successfully.