Beef Up Your Dairy Operations with a Dairy Farm Loan

Dairy and milk production in India is a multi-crore industry and a major contributor to the national economy. Per recent statistics, the dairy industry contributes about 5 percent of India’s economy and engages over 8 crore farmers. Considering the rising demand and immense potential, a lucrative opportunity exists for entrepreneurs planning to enter the dairy business.

However, the initial investment required to set up and run dairy farm operations can be significant. This is where a dairy farm loan can make all the difference.

What is a dairy farm loan?

A dairy farm loan is one of a type of new business loans designed specifically to meet the funding needs of dairy entrepreneurs. It finances expenses related to:

1. Purchasing high-quality livestock like cows, buffaloes, goats etc.
2. Procuring modern dairy farming equipment like bulk milk coolers, pasteurisation units etc.
3. Setting up or upgrading various dairy farm infrastructure like cattle sheds, biogas plants etc.
4. Buying fodder crops, cattle feed supplements etc.
5. Meeting working capital needs like electricity, labour, transportation costs etc.

A dairy farm loan covers all key expenses and provides the finances you need to establish or expand your dairy operations.

Benefits of availing a dairy farm loan

An appropriately utilised dairy farm loan offers multiple advantages such as:

1. Adequate funding to purchase livestock breeds that have higher milk yields
2. Lower interest rates and flexible repayment options compared to other loan types
3. Ability to obtain advanced dairy farm equipment and technology. 
4. Improvement in productivity and quality
5. Funds to sustain operations until break even
6. Bring more acreage under fodder cultivation

Eligibility criteria for a dairy farm loan

While eligibility can vary a bit across different lenders, some basic criteria for a dairy farm loan from NBFCs include:

1. CIBIL Score: 685 or higher
2. Citizenship: Resident of India
3. Business vintage: At least 3 years
4. Age: At least 24 years and not more than 70 years at the time of loan maturity

Depending on your eligibility and creditworthiness, you can access a dairy farm loan from NBFCs for amounts starting from Rs. 2,00,000 to Rs. 55 lakh at competitive interest rates. Even if you are a first-time business owner, you can access unsecured business loans for your dairy farm operations, as long as you have the necessary documents and meet the criteria.

Dairy is an integral part of the Indian economy, well aligned to the consumption habits of a predominantly vegetarian population. With rising demand for quality milk and milk products, dairy entrepreneurs have a long runway to build scale and profitability. However, the right funding at the right time is crucial. Assess your funding needs, evaluate loan options and apply for the apt dairy farm loan to establish a world-class dairy farm. Beef up your dreams to build a successful dairy empire with some financial help!