Discover Dairy Farm Loans: Rates, Apply Online, and Benefits

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 is a Dairy Farm Business Loan?

Dairy farm business loans are essential tools designed to assist dairy farmers in securing the capital needed for their operations. These loans are often short-term and help cover the immediate expenses associated with running a dairy farm. Whether you are looking to start a small dairy unit or expand an existing one, such loans provide flexible funding solutions to meet the varied needs of dairy farming. 

Dairy farmers in India can use these loans for various purposes. It can be used for purchasing cattle, constructing shelters, procuring milking equipment, or processing milk. This financing option is ideal for both small-scale dairy farmers and large commercial operations. It provides timely capital to help improve productivity and manage daily expenses efficiently. 

How are Dairy Farm Loans Helping Bridge the Credit Gap for Farmers?

In India, dairy farming requires significant investments in infrastructure, cattle, feed, and veterinary services. For small farmers, obtaining sufficient funds for these expenses can be challenging due to the lack of collateral demanded by traditional lenders. This creates a financial gap. It hinders their ability to expand or sustain their dairy businesses. Dairy farm loans are designed to address this credit gap by offering collateral-free or low collateral financing options tailored to the needs of dairy farmers. By providing accessible and flexible loans, farmers can invest in essential equipment, expand their herds, and improve their overall operations without worrying about restrictive lending practices.

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

Different Types of Dairy Farm Loans

Dairy farm loans in India are available in different forms to meet the specific needs of dairy farmers: 

• Livestock Purchases or Cattle Loans: These loans help farmers buy new dairy cattle. It includes local breeds like Gir and Sahiwal, or high-yielding cross breeds like Holstein-Friesian. It enables them to improve milk production. 

• Working Capital Loans: Managing daily expenses such as fodder, veterinary care, and other operational costs is a constant requirement. Working capital loans ensure farmers have the funds they need to keep their operations running smoothly throughout the year. 

• Expansion and Diversification Loans: For farmers interested in expanding their dairy businesses or diversifying into related activities like milk processing or production of dairy products, specialised loans can help achieve these goals. 

• Infrastructure Loans: Building and maintaining sheds, installing milking machines, and setting up waste management systems are crucial for dairy farms. Infrastructure loans cover the costs of these essential improvements. 

Subsidised Loans: Government-backed schemes subsidised loans with lower interest rates and easier repayment terms. These are especially beneficial for small and marginal farmers looking for affordable financing options.

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 Starting from 1.25% per month for individuals and farmers and Starting from 1.25% per month for Non-individuals.

Dairy Business Loans Fees and Charges:

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.