Dairy Farm Business Loan

Setting up a new business comes with a lot of investments and thinking. New entrepreneurship projects need the best loans for a flourishing business. Are you planning to start a new dairy business? Or do you want proper funding for an already set up dairy farming business? Let’s take a look at the different aspects of obtaining a dairy business loan.

What are the options?

Dairy farming is majorly an unorganised sector but is also one of the biggest industries in India. To improve and sustain quality in dairy products, and make the sector proper and organised, many dairy farming loans are available. We at Lendingkart provide the best business loans under the scheme and valuable flexibility under the terms of the dairy loan so that you avail the best benefits for your dairy farm.

Purpose of the Dairy Farm Loan:

The loans availed can be used for the following purposes:
  • For establishing a new dairy farming unit or expanding an old dairy farming unit.
  • Purchase of mulch animals and crossbred mulch cows for small dairy units.
  • Rearing of younger calves, crossbred of mulch cows and buffalos.
  • Acquisition of milk machinery such as Bulk Milk Chilling units, automatic milk collection and dispersal systems, milk vans
  • Construction, renovation, or expansion of cattle sheds
  • For growing fodder for cattle, other working capital needs of the dairy farm
  • Acquisition of dairy dispensation equipment, chaff cutters, etc.
  • Dairy manufactured goods transportation services
  • Cold Storage Services
  • Dairy Marketing Outlets

Who is Eligible for a Dairy Farm Loan?

Here is a list of who can apply for a loan below:
  • Farmers who have engaged in dairy activities previously.
  • Individual entrepreneurs who have engaged in dairy activities previously.
  • Groups belonging to the unorganised and organised dairy farming sector.
  • Self-help groups, NGOs, Milk Unions Cooperative Societies, Milk Federations.
There are certain mandatory conditions for Cooperative societies. The societies should have the grade ‘A’ in their last audit, should have a supply of 1000 litres of milk per day on an average to its affiliated milk union and should have earned pre-tax profits in the preceding two years of the time at which the loan is applied.

What are the Features and Benefits of Lendingkart Dairy Business Loan?

The following features and benefits can be availed by opting for our dairy loan:
  • Loans for modern-day dairy requirements: We provide loans for the modernisation of creation of infrastructures. Milk houses, automatic milk collection and dispersal systems, transportation vehicles, Bulk Milk Chilling Units are all covered under the dairy loan.
  • Zero Processing Charges: There are no application charges for any of the loans we provide and absolutely no hidden costs pertaining to the loans.
  • Hassle-free application process: The application process is as easy as it gets. You just need certain documents that are listed, and most of the process is online.
  • Fast loan processing: The application process follows simple steps and minimal paperwork. The process involves the submission of application, document verification and disbursal of funds. This results in fast loan processing so you can improve and serve your dairy farm needs immediately.
  • Better and longer repayment periods: The repayment of the availed loans comes with a minimum of 3 years of repayment period. For certain loans, we can provide a repayment period of up to 7 years.
  • Loan amounts from 75 to 85% of the dairy project cost: The loan that is availed will cover from 75 to 85% of your investments in the dairy farm.
  • Reasonable interest rates: The interest rates range from 2.45% to 4% for individuals and farmers and 2.8 % to 6% for Non-individuals.

Dairy Business Loans Fees and Charges:

Interest rate

2% to 6%

Tenure of loan

Up to 2 years

Instalment options

Monthly / Bi-weekly

Charges for pre-closure

Nil (First EMI must be paid in full)

Processing fees

Onetime 2%

How Can I Repay the Loans?

There are several ways to repay the loans that you get from Lendingkart. We suggest that you should pay by Equated Monthly Instalments (EMIs). It is a hassle-free, simple method of repayment that involves the loan amount to be repaid divided into equal instalments. If your dairy business is getting along well in sales and profits, you can also opt for a loan foreclosure. It allows you to pay the whole loan at once, any time after your first EMI payment. Usually, loan foreclosures have a foreclosure penalty charge, but with we provide loans without any such charges.

How Can You Apply Online Dairy Farm Loan Through Lendingkart?

The dairy business loan can be applied for online at our website. It involves certain simple steps to be followed. For faster processing, please follow these steps thoroughly. The steps are as follows:
  1. Submit your Application: Fill in your personal, financial and dairy business details on our website and submit this application. Please make sure all the details provided are correct to the best of your knowledge
  2. Document verification: Submit all the documents required to the online portal.
  3. Get sanction: The loans usually take up to 3 working days for approval.

Documents Required:

  • ID Proof: Aadhaar Card, PAN card, Voter ID, Driving Licence (any of these)
  • Residential Proof: Electricity or water bill (latest), Ration Card (any of these)
  • Proof of dairy business registration
  • Partnership deed (if any)
  • Passport sized photographs
  • Banking documents: Salary credit of last 6 months

Dairy Farm Loan FAQs:

1. What are the foreclosure charges for Lendingkart dairy farming loans?

There are no foreclosure charges at all for foreclosure of a loan. The only condition is that the first EMI has to be paid off before you can opt for foreclosure of the loan.

2. What is the repayment period of the loans?

The repayment period varies from 3 to 7 years, depending on the dairy-related activity chosen.

3. Is there any grace period for these loans?

The grace period of the loans differs from 3 to 6 months for dairy farming units to 3 years for calf-rearing businesses.

4. Why should I repay the loan bi-weekly instead of monthly?

The advantage of repaying biweekly is that the repayment is done twice as quick compared to monthly EMIs. The quicker you repay, the faster the loan renewal and hence it creates a revolving credit.


Cities we serve in India

Delhi NCR: Delhi, East Delhi, Gurugram, Faridabad ,Ghaziabad, New Delhi, South Delhi, Noida, Rithala
Haryana: Chandigarh, Rohtak, Palwal ,Gurgaon, Rewari, Panipat, Kaithal, Karnal
Himachal Pradesh: Shimla, Mandi, Manali, Chamba, Kullu, Rampur
Uttarpradesh: Lucknow, Agra, Kanpur, Allahabad, Varanasi, Meerut, Jhansi
Punjab: Amritsar, Ludhiana, Jalandhar, Patiala, Firozpur, Lahore
Uttarakhand: Dehradun, haridwar, Mussoorie, Roorkee, Kichha

Odisha: Bhubaneswar, Cuttak, Sambalpur, Berhampur
West Bengal: Kolkata, Hooghly, Howrah, Kalyani
Bihar: Patna, Sasaram, Nalanda, Aurangabad, Jahanabad, Siwan, Darbhanga, Buxar
Jharkhand: Ranchi, Jamshedpur, Dhanbad, Deoghar

Gujarat: Ahmedabad, Vadodara, Surat, Jamnagar, Gandhinagar, Deesa, Porbandar, Bharuch
Goa: Panaji, Madgaon , Mapuca , Ponda
Rajasthan: Alwar, Jaipur, Ajmer, Behror, Dholpur
Maharashtra: Mumbai, Palghar, Pimpri, Ulhasnagar, Thane, Ahmednagar, Aurangabad, Nashik, Nanded

Telangana: Hyderabad, Ranga Reddy, Khammam, Secunderabad, Warangal, Nalgonda, Karimnagar, Nizamabad, Adilabad
Karnataka: Bangalore, Mangalore, Hubli, Mysore, Shimoga, Davanagere, Gulbarga, Bellary, Belgaum
Andhra Pradesh: Vijayawada, Visakhapatnam, Guntur, Tirupati, Rajahmundry, Kakinada, Amaravati, Kadapa, Nellore, Kurnool, Anantapur
TamilNadu: Chennai, Coimbatore, Madurai, Trichy, Salem, Vellore, Erode
Kerala: Ernakulam, Kochi, Thiruvananthapuram, Kollam, Thrissur, Malappuram