NABARD Dairy Farming Loan Scheme:- The Government of India has introduced the NABARD Dairy Farming Loan Scheme 2024 to promote dairy farming in rural areas. This scheme provides loans at low-interest rates, allowing people to start dairy farms with financial ease.
In 2024, the central government plans to provide financial assistance of INR 30,000 crore to farmers. Under the NABARD Dairy Loan Scheme, the loan will be distributed through cooperative banks, benefiting nearly 3 crore farmers across the country. The scheme, implemented through the Department of Animal Husbandry and Fisheries, aims to reduce unemployment in rural areas and create new employment opportunities by offering low-interest loans to individuals involved in animal husbandry and fisheries.
This initiative is designed to increase milk production in India by encouraging more people to start dairy farms. If you wish to avail of the benefits under the NABARD Dairy Farming Loan Scheme 2024, you need to submit an application.
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Objectives of NABARD Dairy Farming Loan Scheme 2024
The NABARD Dairy Farming Loan Scheme 2024 aims to offer loans at minimal interest rates to rural citizens for engaging in dairy farming. This initiative is set to provide new employment opportunities in rural areas and enhance the income of farmers. It will significantly contribute to boosting milk production in the country.
Key Features of NABARD Dairy Farming Loan Scheme 2024
- The Government of India plans to provide financial assistance worth INR 30,000 crore through the NABARD Dairy Farming Loan Scheme 2024 based on the applicant’s eligibility.
- Loans will be disbursed through cooperative banks, directly benefiting farmers.
- The scheme allows beneficiaries to purchase machinery to aid in the milk production process.
- Farmers can receive up to INR 13.13 lakh for purchasing equipment and machinery for dairy production.
- Loans of up to INR 10 lakh are available under this scheme. Additionally, individuals must contribute 25% of the investment from their own funds.
- Beneficiaries are also eligible for a 25% subsidy from the government as a form of incentive.
- Scheduled Caste and Scheduled Tribe beneficiaries can receive subsidies of up to INR 4.4 lakh.
- The loan amount will be provided through cooperative banks, and applicants must invest 25% of the total amount themselves, with the remaining 75% provided as a loan at minimal interest rates by the central government.
Eligibility for NABARD Dairy Farming Loan Scheme 2024
To apply for the NABARD Dairy Farming Loan Scheme 2024, applicants must:
- Be residents of India.
- Be at least 18 years old.
- Only one member per family is eligible to apply for the scheme.
- The loan under this scheme can only be availed once in a lifetime.
- Dairy companies, NGOs, and entities from the unorganized sector are also eligible for the loan.
Required Documents for NABARD Dairy Farming Loan Scheme 2024
Applicants must have the following documents:
- Aadhaar card
- PAN card
- Completed application form
- Identity proof
- Residence proof
- Caste certificate
- Income certificate
- Bank passbook
- Passport-sized photographs
- Mobile number
Online Application Process for NABARD Dairy Farming Loan Scheme 2024
To apply online for the NABARD Dairy Farming Loan Scheme 2024, follow these steps:
- Visit the official NABARD website: https://www.nabard.org/
- On the homepage, select the option for NABARD Dairy Loan.
- The application form for the NABARD Dairy Farming Loan will appear.
- Fill in all the required details accurately.
- Upload the necessary documents after scanning them.
- Once all the information and documents are uploaded, submit the form.
How to Get NABARD Subsidy for Dairy Farming
Dairy farming is a significant livelihood source in rural India, although much of the sector remains unorganized. To bring structure and offer financial assistance for setting up dairy farms, the Department of Animal Husbandry, Dairying, and Fisheries launched the “Venture Capital Scheme for Dairy and Poultry” in 2005. Following the success of this scheme, the Government introduced the Dairy Entrepreneurship Development Scheme (DEDS) in 2010, implemented through NABARD (National Bank for Agriculture and Rural Development).
In this guide, we’ll explore how to avail NABARD’s subsidy for dairy farming, the eligibility criteria, and the process involved.
NABARD Subsidy for Dairy Farming
The NABARD subsidy scheme aims to encourage modern dairy farming practices and increase clean milk production. The primary goals of the subsidy are:
- To promote the establishment of modern dairy farms to ensure clean milk production.
- To support heifer calf rearing, conserving valuable breeding stock.
- To bring improvements in the unorganized sector by facilitating milk processing at the village level.
- To upgrade quality and traditional technology for handling milk on a commercial scale.
- To generate self-employment and infrastructure, particularly for the unorganized sector.
Eligibility Criteria
The following entities are eligible for the NABARD dairy farming subsidy:
- Farmers and individual entrepreneurs
- NGOs and companies
- Self-help groups, dairy cooperative societies, milk unions, and milk federations
- Groups of unorganized sectors can also apply.
It is essential to note that the subsidy is available only once for each component of the scheme. Multiple members from the same family can apply, but they must establish separate units with individual infrastructure at distinct locations, at least 500 meters apart.
Components and Subsidy Details
Here’s a breakdown of the NABARD subsidy for different dairy-related activities:
- Small Dairy Units
- Investment: ₹5 lakh for 10 animals (minimum 2, maximum 10).
- Subsidy: 25% of the investment (33.33% for SC/ST), up to ₹1.25 lakh for 10 animals (₹1.67 lakh for SC/ST).
- Heifer Calf Rearing Units
- Investment: ₹4.8 lakh for 20 calves (minimum 5, maximum 20).
- Subsidy: 25% of the investment (33.33% for SC/ST), up to ₹1.2 lakh for 20 calves (₹1.6 lakh for SC/ST).
- Vermicompost Units
- Investment: ₹20,000.
- Subsidy: 25% of the investment (33.33% for SC/ST), up to ₹5,000 (₹6,700 for SC/ST).
- Milking Machines and Bulk Milk Coolers
- Investment: ₹18 lakh.
- Subsidy: 25% of the investment (33.33% for SC/ST), up to ₹4.5 lakh (₹6 lakh for SC/ST).
- Dairy Processing Equipment for Indigenous Milk Products
- Investment: ₹12 lakh.
- Subsidy: 25% of the investment (33.33% for SC/ST), up to ₹3 lakh (₹4 lakh for SC/ST).
- Cold Storage for Milk Products
- Investment: ₹30 lakh.
- Subsidy: 25% of the investment (33.33% for SC/ST), up to ₹7.5 lakh (₹10 lakh for SC/ST).
- Veterinary Clinics
- Investment: ₹2.4 lakh for mobile clinics and ₹1.8 lakh for stationary clinics.
- Subsidy: 25% of the investment (33.33% for SC/ST), up to ₹60,000 for mobile clinics and ₹45,000 for stationary clinics (₹80,000 and ₹60,000 for SC/ST).
- Dairy Parlors
- Investment: ₹56,000.
- Subsidy: 25% of the investment (33.33% for SC/ST), up to ₹14,000 (₹18,600 for SC/ST).
Steps to Obtain NABARD Subsidy for Dairy Farming
Follow these steps to apply for and obtain the NABARD subsidy for dairy farming:
- Choose the Activity: Select the specific dairy farming activity or business model you wish to pursue, such as setting up a small dairy unit or purchasing milking equipment.
- Register a Business: Register your business, whether it’s a company, NGO, or another suitable entity.
- Create a Business Plan: Prepare a comprehensive business plan or project report for your dairy farm, outlining the investment required and requesting a loan.
- Apply for a Bank Loan: Submit your business plan and loan request to a commercial bank, regional rural bank, cooperative bank, or any institution eligible for NABARD refinancing.
- Implement the Project: Once your loan is sanctioned, proceed to implement your dairy farming project using the loan and your own investment.
- Bank Applies for Subsidy: After the first installment of the loan is disbursed, your bank will apply to NABARD for the subsidy.
- NABARD Disburses Subsidy: NABARD releases the subsidy to your bank, which will hold it in a “Subsidy Reserve Fund Account” without interest.
- Subsidy Adjustment: Once you successfully repay the loan, the subsidy will be adjusted against your remaining loan balance in the last few repayments.
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Conclusion
The NABARD subsidy for dairy farming offers a great opportunity for entrepreneurs, farmers, and organizations to establish or expand their dairy farming operations. By following the outlined steps and ensuring compliance with the eligibility criteria, you can avail this subsidy and contribute to the development of the dairy sector in India.
FAQ – NABARD Subsidy for Dairy Farming
Q. What is the NABARD Dairy Farming Subsidy?
The NABARD Dairy Farming Subsidy is a financial assistance program launched by the Government of India through NABARD to promote modern dairy farming practices. It aims to provide support in establishing dairy farms, purchasing equipment, and setting up related infrastructure.
Q. Who is eligible for the NABARD Dairy Farming Subsidy?
Individuals such as farmers, entrepreneurs, NGOs, companies, and groups (both organized and unorganized sectors) are eligible. Groups include Self Help Groups (SHGs), Dairy Cooperative Societies, Milk Unions, and Milk Federations.
Q. How many times can an individual avail of the subsidy?
An individual can avail of the subsidy once for each component of the scheme. If multiple family members apply, separate units with different infrastructures must be established at locations that are at least 500 meters apart.
Q. What is the maximum subsidy amount available?
The subsidy varies depending on the type of dairy farming activity. For example, a unit of 10 animals may receive up to Rs 1.25 lakh in subsidy (Rs 1.67 lakh for SC/ST farmers). Similarly, for a cold storage facility, the maximum subsidy can go up to Rs 7.50 lakh (Rs 10.00 lakh for SC/ST farmers).
Q. What are the key activities that qualify for the subsidy?
The subsidy is available for several dairy-related activities, including:
- Establishment of small dairy units.
- Purchase of milking machines, milk testers, and bulk milk cooling units.
- Heifer calf rearing.
- Purchase of dairy processing equipment.
- Development of cold storage facilities for milk and dairy products.
- Establishment of veterinary clinics and dairy parlors.
Q. How can one apply for the NABARD Dairy Farming Subsidy?
The process involves the following steps:
- Choose the type of dairy business activity.
- Register a business entity or NGO.
- Prepare a detailed project report and apply for a bank loan.
- Once the loan is approved and the project is initiated, the bank applies to NABARD for subsidy disbursement.
- NABARD releases the subsidy to the bank, which holds it until the loan is serviced.
Q. Is collateral required for the loan?
Collateral requirements, loan tenure, and interest rates are decided by the bank that sanctions the loan.
Q. How is the subsidy adjusted in the loan repayment?
The subsidy is credited to the “Subsidy Reserve Fund Account” in the bank. Upon successful loan repayment, the subsidy is adjusted against the last few installments of the loan.
