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.


There are 85 Comments

I am planning to start a diary farm with 10 cows. Can you please let me know what are the Government schemes and subsidy available

sir,i am planning to start a dairy farm with 30 cows and 50 buffalow in half acre land in karnal(haryana)i am graduate.should i get 25 lac loan on subcidyfrom sbi bank or other bank

Dear Sir kindly support to me to start own dairy, My Father have 7 bigha land & we have 3 brother, we want to start milk dairy. We need 20 lakh loan for this project, kindly support & advice to me.

Hello sir....
This is Ramesh..completed and now I realized that software job is too tough and wants to start buffalo farm as I'm from village, i better knows the growing up buffaloes and also we have 2 buffaloes...and wants 3 t0 4 lakhs loan for 5 buffaloes....
Please help me and reply.

We have 10 acres of land and wants to take loan for buffalo farming for 5 buffalos upto 4 lakhs ..and i well know how to grow cattles as im from village

hello sir, iam from karnataka bidar dist. i am planning to start a dairy business with 10 hf cows. at least this project need 5-7 lack need. i dont know dairy farm sbi loan with interest without interest. if there is interest is there means how much % tell me

Dear sir;
I want to get loan for a small dairy farm(10 buffaloes) 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

Dear sir,

i am planning to start the business of dairy form. Will i get any loan in your side? what types of loans suitable for me please tell me

Hi sir,
I'm kishan parsonda, please give me detail of buffalo farming loan I am from Village:patidad, Ta:Gondal, Dis:Rajkot, I have 2.5 Acers land so please give answer on my email.

I apply for dairy loan through acabc scheme. But not sanctioned to me.... No answer by bank for my file loan details found. Plz tell how got it.

Nu To Bta Dyo Vijay Malya Ne 9000 Crore ka Loan Kis Base Pe Liya Tha ... Haamne 25 lakh bhi Na Dete Ghanta Kare Dairy Farm

I want to open dairy farm in my village near karnal i want take loan for 10 animal and i have taken training from NDRI karnal with certificate give me some help

Hello sir...i am living in Paris since 10 year..and i am 28 year i want to move in India and start a high tech dairy farm with 20.. 30 cows in my village ..near Ambala . Haryana.w e have 20 acre of land ..and value of 1 acre in our area is 35 to 4 0 i need some good contribution from your much your bank can provide me loan...reply me please... waiting for your response hopefully..thank you

I have 5 acre land in which 1 acre linked with residential area .I am a commerce graduate I hope I will handle the business in better way and make it profitable . Kindly help me for the process of getting loan shortly thanks.

Stanly Chirayath's picture

If you have enough experience in the field, make a project report, meet branch manager near to your location where you are planning to start the unit. If manager has been convinced, you will get the loan as per the project report subject to all other terms and conditions.

Dear sir , i have across 50 biga land so i want to open dairy project and want to loan for the same. but i am confused which types startup for the dairy project. i have also fully facility of water and electric city.
Thanx & regard's

Arvind meena

Dear sir,
I have a 1 acres land on Balaghat Madhya Pradesh & I want to open 30 buffallo (murrah) farms for a milk production. The estimate cost of project is 15,00,000/-, so i need a loan from your bank. How much your bank can provide a loan for project?

Dear sir,

I am dairy technologist also completed course on Dairy project Management from IRMA, Gujarat & presently working with very reputed brand from last 10 years. We have 4 acres land near Tumsar Dist. Bhandara, Maharastra. I want to start dairy farming & milk products manufacturing project. Please suggest.

Hello sir,

Myself Anil chaudhary From Gujarat. I am an engineer. I have already 8 buffalo. 13 acare land is ready for this business. Also their water facility and electricity setup already done. We have all agricultural machinery. I want to take up my business on big level. Can you please tell me what is the procedure of loan and which kind of document require their.

best regards,
Anil chaudhary

Hi I have 4 acre field in Palwal Haryana i want to start dairy farming
so we will require loan for the same

Sir, myself Jahangir Alam, from Jalpaiguri(WB). I want a loan for starting a village level dairy farm (cow). I have 3 acres land.
So plz contact me as possible.

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

I have two halysten and one Jersey cow I want to know that how I get loan for purchasing more cow or i have plot 40×60
For this. We are not supply milk in any milk society. We sold it in our market. So if we are eligible for loan than please reply. We are waiting. thanks

I. Have 4 filds ,water, electricity and all facilities how much loan can I get from bank to start a dary of 20 cow. Please tell me as soon as possible.

Dear sir,
I am B.Tech in Dairy Technology wants to start my own dairy farming & product manufacturing project.Presently working with dairy industry with reputed brand. I need upto 50 lakhs loan . pl

sir i have 1 acre land in haryana and i want to start diray of 10 buffaloes... so much loan can i expect from bank.. sir plzz guide me

I already seen 40cents land ₹18 lack and I want to start dairy business in that.plz provide loan 20lack.i will on time on regular Basis

I am bhupendra bundela I have a 5 baffelos I gat 38 litter milk
I want loan because I want to developed my dairy so please help

Hi sir,
As mentioned to the above mentioned subject, I would like to have some kind of information:

Firstly I'm having 2 acres leased land and I'm not having any personal land or property.

Can I get loan to start up dairy farm in Tumkur dist?

Initially I'm planning with 10-12 Jersey or hf cows for milk production. Project requires approx 12 lacks. Can I get loan on this condition.

Please suggest me In this case.

Dear Concern,

I want to take subsidized loan to buy 2 or 3 buffaloes to start small venture but the problem is i'm not having any type of land or any property on my name straight away.

In this case what we can do, I've graduation degree & my wife is 12th pass.

Please kindly guide me in the same.

I want information New dairy farming
1. minimum 10 nos breaded buffalo
2. maximum 50 nos
what is the requirement
Govt contribution
Loan amount
details required

I have 7000 square feet area at 9 meter road both sides connect state hiway 1.5 km I want to create the dairy farming business so please guide me how to I get bank loan. I am also diploma in dairy husbandry and I have 26 years experience in dairy processing. So please help me.

I am Rohit.

I live in Hyderabad I've reached out to my local bank however, they mentioned that this is a metropolitan bank and we don't have information on "agriculture loan" (dairy) and they asked me to contact rural branch.

And I also heard that SBI has a scheme which is a mix of Mudra Bank Loan and Dairy loan, is this correct? and any leads on how to get the loan is appreciated.

Thank you.

Stanly Chirayath's picture

Hello Rohit,

SBI gives Mudra loan and dairy loan from urban bank no doubt. But the fact is if they have another exclusive branch for agricultural activities within the city, they may request you to contact them.

Moreover, please note that any kind of bank loan, it is advised to contact branch manager directly, avoid other staffs who sits in the front office.

For Mudra bank loan you can read a comprehensive details here.

Happy loan