Scheme for Financing Mini Dairy Units

Purpose

A scheme to establish new small dairy units with 2 to 10 milch animals.

Eligibility

Individuals, Farmers, Members of NGOs/SHGs/JLGs.

Quantum of Loan

Per animal cost as given/provided by respective regional offices of NABARD of the concerned state.
Number of animals to be financed under the scheme:
Minimum: 2
Maximum: 10
Maximum Amount of Loan: Maximum number of animal financed under the scheme x per animal cost (as given by respective Regional office of NABARD).
Buffaloes producing more than 7 litres of milk per day and cows producing more than 8 litres of milk per day only, preferably only the following breeds are to be financed under the scheme:

• Cross breed: Jersey cross, Holstein Friesian cross
• Buffalo: Murrah breed, Graded Murrah, Mehsana, Jaffarabadi, Godavari, Bhadawari and Surti
• Indigenous breed of cows: Sahiwal, Tharparkar and Red Sindhi

Nature of facility

Term Loan

Rate of Interest

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Margin

10%

Repayment Period

Not exceeding 5 years (including moratorium period of 3 months).

Security

Loans up to Rs.1.6 lakhs:

• Hypothecation of livestock

Loans above Rs.1.6 lakhs and upto Rs. 2 lakhs:

• Hypothecation of live stocks
• Mortgage of land or third party guarantee

Loans above Rs. 2 lakhs:

• Hypothecation of live stocks
• Mortgage of land
• Third-party guarantee, if stipulated