Get loan up to ₹ 10 lakh without guarantee, government will give subsidy up to 33%; Know the complete method of application:

Lucknow/New Delhi: Dairy farming in rural India is no longer just a tradition but has become a profitable ‘white revolution’. The rising prices of milk and ghee have opened new avenues of earning in this sector. To encourage animal farmers and rural youth, the government has further simplified the rules under the Dairy Farming Loan Scheme 2026. Now you can start your own dairy business without any big guarantee.

Dairy Farming Loan: What is the government’s plan?

The government is strengthening the dairy sector through NABARD and various public sector banks. The main objective of this scheme is to provide financial support to the cattle farmers to purchase modern technology and good breed of animals.

Mathematics of loan amount and subsidy

Loan Limit: Loan up to ₹10 lakh is easily available to start a small scale dairy. This amount may be even higher for larger projects.

Benefit of subsidy: The biggest feature of this scheme is its subsidy:

General Category: Subsidy up to 25%.

SC/ST and Women Entrepreneurs: Heavy subsidy up to 33.33%.

Interest Rate: Being an agricultural loan, its interest rates are quite low (about 7% to 12% per annum).

[Image showing a modern dairy farm with high-yield cows and automated milking machines]

Where can you use the loan?

You can use this loan amount for the following purposes:

Purchase of animals: To buy good breed cow (eg- Gir, Sahiwal) or buffalo (Murrah).

Shed Construction: To make ventilated and modern sheds for living animals.

Machinery: For milking machine, fodder cutting machine and milk chilling unit.

Working Capital: For expenses on fodder, medicines and vaccination of animals.

Eligibility Criteria

Applicants: Individual farmers, entrepreneurs, self-help groups (SHGs), and milk cooperatives.

Age: Applicant must be at least 18 years of age.

Experience: Although not mandatory, it is easier to get a loan if you have basic knowledge of animal husbandry.

Important Documents (Document Checklist)

Keep these documents ready for application:

Identity Card: Aadhar Card, PAN Card or Voter ID.

Residence Proof: Ration Card or Domicile Certificate.

Land papers: Documents (Khatauni) of the land where the dairy farm is to be built.

Project Report: A brief business plan of a dairy farm (how many animals will be there, how much milk will be produced etc.).

Bank Statement: Transaction records of the last 6 months.

how to apply? (Step-by-Step)

Go to the bank: Go to your nearest government, rural or co-operative bank (eg SBI, PNB, BOB) branch.

Scheme Information: Ask about ‘Dairy Entrepreneurship Development Scheme’ (DEDS) or related state scheme.

Fill the Form: Fill the loan application form and attach the required documents with your project report.

Verification: Bank officials will physically verify the location of your form and documents.

Approval: If everything is found correct, the loan will be approved and the subsidy amount will be credited (back-ended) to your bank account.