SBI Agriculture Loan - Scheme For Dairy Societies And Dairy Units

SBI has two bank loan schemes for Dairy related agricultural projects. The first one named -SBI Scheme For Dairy Societies- aims to provide finance for creating infrastructure like Construction of Milk house or Society office, Purchase of Automatic milk collection system, transport vehicles, Bulk chilling unit; and the second named SBI Dairy Plus Agriculture loan scheme to finance milk producing members of AMUL pattern societies recognized private milk dairies posting profit in the past two years.

1. SBI Agriculture loan scheme for Financing Dairy Societies

SBI Scheme For Dairy Societies aims to provide finance for creating infrastructure like Construction of “milk house or society office”, Purchase of “Automatic milk collection system”, transport vehicles, Bulk chilling unit.

SBI Agriculture Loan - Scheme For Dairy Societies

Loan Eligibility for Dairy Societies

Society should have ‘A’ grade milk societies – registered & affiliated to district milk union, no adverse remarks in the audit report of previous 2 years, supplying 1000 lit/day to milk union, audited balance sheet for at least previous 2 years, earning pre-tax profits for the last two years, borrowing powers as per bye-laws of the Society.

Classification of Loan for Dairy Societies

Included in Indirect agriculture finance and / or Agricultural term loan (ATL).

Limit of Loan for Dairy Societies

Maximum - 4 times the average profit of previous 2 years maximum Rs 10.00 lacs. Milk house or society office Rs. 2 lakh, Automatic milk collection system Rs. 1 lakh, Milk transportation Rs. 3 lakh, Chilling Unit Rs. 4 lakhs.

Margin of Loan for Dairy Societies

Margin money shall be 15% of the total loan amount

ROI /Documents

As applicable to ATL.

DSCR: Min. 1.75


  • Primary: Hypothecation of assets.
  • Collateral: Mortgage of landed property (or) Guarantee of milk union. Letter of undertaking from milk union to deduct and pay bank the amount till liquidation of loan.


Repayable in 5 years with a gestation of 6 months, with monthly installments.

2. SBI Agriculture Loan Scheme for Financing Dairy Units (Dairy Plus)

SBI Dairy Plus Agriculture loan scheme to finance milk producing members of AMUL pattern societies recognized private milk dairies posting profit in the past two years.

SBI Agriculture loan scheme for Financing Dairy Units (Dairy Plus)

Purpose of SBI Dairy Plus Agriculture loan scheme

Construction of dairy shed Purchase of quality milch animals, milking machine, chaff cutter or any other equipment required for the purpose.

Eligibility for SBI Dairy Plus Agriculture loan scheme

Individual member of Amul Type society, age below 65 years with min. Individual Dairy < 10 animals min 0.25 acre land per 5 animals for growing feed & able to procure balance locally, > 10 animals 1 acre own or lease land per 5 animals.

Limit of SBI Dairy Plus Agriculture loan scheme

A Term loan of Maximum Rs.5 lacs. A working capital @ Rs.2500/- per animal per year may be sanctioned. Min DSCR: 1.75.

Margin of SBI Dairy Plus Agriculture loan scheme

Loans upto Rs. 50,000/- : Nil. Loans above Rs. 50,000/- and upto Rs.5 lacs: 10%


  • Primary: hypothecation of assets.
  • Collateral: upto Rs. 1.00 lac : Nil. Over Rs.1 lac - Mortgage of landed property (or) third party guarantee worth for loan amount (or) group guarantee of other 2 dairy farmers.

Repayment of SBI Dairy Plus Agriculture loan scheme

5 Years in monthly instalments with Gestation period – 6 months.

Rate of interest of SBI Dairy Plus Agriculture loan scheme

As applicable to direct agricultural loans (ATL).

Other terms

Minimum yield criteria: Buffaloes – 7 lit/day (lactation average) Cow – 8 lit/day (lactation average). Fodder cultivation can be financed as per scale of finance. Payment to the bank directly by the society. Milk union operation & milk route facility are essential.

Beware Of Fake Banking Offers And Hoax Calls From Fraudsters / Miscreants On Behalf Of A Bank And Other Institutions.

There are 85 Comments

Hi All,

i need a loan, for the infrastructure for my exciting cattle farm near rajankunte, north Banaglore.
Kindly Help me in giving loan....

This is srinivasa Reddy from andhraPradesh I went my nearest branch but no response from them side what can I do Please reply me

Do you Need a loan? If yes search no further for here comes a reliable lender who helped me with a loan when i had nothing. You can reach them at

Beware the above message!

Don't become fool or prey of those fraudsters. This site is getting lot of such messages that we delete immediately. Don't believe any offer for loan or financial assistance from strangers. There is no short cut for getting any type of loan. You are warned!

Hello sir,

Abhishek here from Uttarpradesh looking for loan, actually, i want to open a cattle farm. Due to this, i want loan around 5 lacs. Can i get the detail that how i can get the loan?

Dear All,

I want to develop our village, right now i am in Saudi Arabia and i will invest RS.20,0000,. how much bank invest on this amount
Please help me.

Sir i am going to establish a dairy farming unit of 10 desi cows. I have 1.5 acres land with water and elecrticity. I am 22 years old and graduated. My total project value goes upto 2500000 . Should i get loan from SBI.

Stanly Chirayath's picture

Bank loan for a dairy unit consisting 10 desi cows having project cost Rs. 25 lakhs may not be realistic. Think what is in your mind twice and have a discussion with Bank manager. How did you calculate and reach this Rs. 25 lakhs for a dairy farm having only 10 desi cows?

I am having one acre of land and want to purchase 1 or 2 buffalows producing 7 or litres of milk. How much loan will I get from bank? and what will be interest rate?

Hi sir I want to start Buffalo farming ...I already tiped with KMF..Sir I need 5 lack loan over 2 acre 29 this possible to get the loan with mortgage

I interested to make new cow dairy farm how apply loan bank.

i have now 8 Cows and 2 Beffolows and 90 litrs milk produce daily. but i want buy another 10 cow and construct shed for this.plz reply on

Sir I have 5 acre land I want to buy 25 Murrah buffalo's to running a dairy farming I think the total cost is 25lakhs how much loan will i get from Bank

Stanly Chirayath's picture

If your estimate is based on the facts, it seems you will get the maximum loan amount for starting Dairy Farm unit of Murrah Buffaloes. Have a discussion with your bank Manager. Margin money 10% to be your contribution if loan gets passed.

dear sir,i want to start a dairy farm of 50 murrah buffaloes in Haryana.i have 5 bighas of it enough also total capital available is 15 u think it is right to take the step.
best regards

Dear SBI
I am Nitesh and I am B.Tech Agricultural engineer. I want to start a dairy plant in my village. Plz tell me how SBI help me.

Dear Sir,

I am owing a dairy farm in new delhi with Buffaloes 100 in no's and cow 20 in no's .

I want to start the automations process and shed set-up work in my dairy .how much loan i can receive from the bank and how much will be the actual cost .Banks are giving loans to dairy owners in delhi under dairy development scheme???what will be the current rate of interest and procedure of loans.



Rs. 1 crore sanctioned as term loan for dairy project starting with shed and other equipment. 120 cows were to be disbursed. 1st lot 40 cows. It took 1 year to complete the project. Interest repayment charged during moratorium when to start and branch says repayment to start adding interest with EMI of term loan. Bank made NPA under quick moratorium. When project started after 1 year how interest can be served. Please guide.

I want to establish cow based dairy farm in rural area of district faizabad state Uttar Pradesh

Sir i m from babalad. Dist-tq-bijapur. My land only 2 accar is their.... i need 10 laksh loan. How to get loan plz rpl me.

I want Open a Dairy farm in Bihar Patna plz provide Bank financial Project details of rs. 2.5 Lacks.

Which cow prefer for a new dairy farm in initial stages.

I have 1 acr land and i want to open a dairy farm, i want to know what is the state (MP) & center gov. Policy regarding the loan as wel as subsidy, interest rate etc. For the loan approx 20 lack ....

Dear All,

Right now i am working a job but insist want to develop our village and our self but already i visited more banks for the dairy loan they are not provided loan, please i would like to request to you that help me and suggest

i am waiting for your response

vishnu singh

Hello sir I want to take the loan for buying the buffaloes about 5lacks to 7lacks so please give suggestion to take the loan

Dear Sir
I want to start a new dairy farm of American cow's
Pls update documents and some ideas or lone proses
Plz response

Hi sir, My self is vinay.i am living is Karnataka state.i am in plan to start small scale dairy farm(around 10 HF cow)I have 3acres of land. My project will cost around it SBI provides loan for this project? If they are ready to give loan, what are the documents require to submit to bank.

Dear sir;
I want to get loan for a small dairy farm(10buffalos) can SBI provide around 10lac.rupees for Dairy Farm.My father have 4acre land so i want to open a dairy.
Name- jitendra kumar kurmi

sir good afternoon.i am a 22 year old boy from m.p. i have total land of 15 beegha including the farm of 5 beegha on road where i have proper water facility.where i wANT to start a dairy farm or approximatly 40-50 cows and my first question is how much ammount of money it will require and second is for this which government organisation that will guide me from starting to end.last question is can i get loan for this project and from where i can get this loan and process of this loan .....waiting for ur reply eagerly thanku sir

Stanly Chirayath's picture

Do you have any experience in this field? If you have enough experience, first you contact nearest veterinary university or college for guidance. Visit some farms and milk marketing societies near to your place.

Else appoint a consultant who can give all assistance in this regard.

If you can convince the bank (SBI or any nationalized bank), you will get bank loan based on the project report.

Sir, how i can get loan under acabc scheme or DED scheme. What is the procedure for getting loan under this scheme.

Hello sir, i have 2 acres land in Nalgonda dist, Telangana state, i want open a small dairy unit with shed and buffaloes, did i get bank loan, i am a employee, how mush loan bank will give can you suggest me.

Hi sir i want open dairy udyog in tonk district can get loan for dairy udyog.

sir m haryana se hu mere pass 4 arces jamin h.m mini dairy lagana chahta ki scheme kya h.mujhe guide kre.thank you

Hello Sir,
I am chetan from bangalore, working in an IT Firm i am feedup of my job and taught of starting a new business and frnd of mine gave a suggestion of starting a dairy farm. so i took a training session given by institution. i have 5 acre of land. nedd a loan have a plan to start with 10HF cows please suggest

Stanly Chirayath's picture

Refer some project reports and resources available online, then make a project report that suitable for you. Since you are a trained person, I hope you can convince feasibility of the project to the bank.

Make connections with other dairy farms, societies and vet clinics in your locality.

Research Marketing scopes from different angles.

I hope you can become one of the successful entrepreneur in this field.

Best of luck!

Chetan, Did you get the business set up , I 'm in almost similar situation like your;s. Can we have a small conversation. I wish for same what you had.

Dear sir,
I want to opena dairy farm of 10 Jersey cows in bhusbaneswar whom shall branch of sbi should i contact for the loan m ready to mortgage my land for it loan amount will be around 5 lakhs

Stanly Chirayath's picture

Bank Loan Related queries are generally attended by Branch Managers. You can go directly to meet Branch Manager for discussing the matter. Though larger branches have different sections to handle their various products, insist to meet Manager, Loans.

sir I want to start dairy with 10 cow(100lits) my project values 1300000 iwant loan of rupees 500000 I haue 8 years I t retune also