Goats are important in providing additional income and livelihood to millions of poor farmers and landless laborers in rural India. Goat farming involves rearing and breeding domestic goats as a livestock branch. You will need some amount of money to start a goat farming business. Customers can take goat farming loans from various banking and government agencies to meet their working capital requirements and maintain stable cash flow.
Goat farming is proving to be a profitable and sustainable business for many people living below the poverty line. Goat farming not only helps in employing a large section of people but also adds nutrition to the diet of the deprived people.
Goat farming loan in India
Importance of getting a loan for goat farming
Goat farming business loans can be used for land purchase, shed construction, goats, and fodder, among other things. The Government has announced several new initiatives and incentives to encourage people to start goat farming businesses. A goat farming loan is a working capital loan used to start and grow goat farming. To start and manage the farm, goat farming requires a sustainable amount of money.
Goat farming loans can be used to purchase land, build sheds, buy goats, buy fodder, etc. The process is very simple. Firstly, get information about the goat farming business; you can take goat farming training, make a goat farming project report and apply for any government loan. Also, ask your bank manager to get a NABARD subsidy after the loan sanction. Getting a subsidy from NABARD is easy.
Loans are available from banks with refinancing facilities from NABARD to start goat farming. To avail bank loan, farmers should apply to the nearest branch of a commercial, cooperative, or regional rural bank in their region in the prescribed application form, which is available at the branches of the financing bank. A technical officer or manager attached to the bank can assist/guide the farmers in preparing the project report for obtaining a bank loan. It is a working capital loan that can be availed for a goat farming business.
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Like any business, starting a goat farming business requires some money. To meet working capital requirements and maintain cash flow, customers can opt for goat-rearing loans offered by various private and public sector banks. Goat farming loans can be used for land purchase, shed construction, goats, fodder, etc. In addition, the Government has launched many new schemes and subsidies for entrepreneurs to start goat farming businesses.
Advantages of applying for goat farming loan
Taking a loan for goat farming has several purposes. The following are the benefits of such loans:
- One of the main benefits of such loans is that the individual gets capital to start farming. But unfortunately, a lack of sufficient financial resources is a major obstacle for many who wish to start a livestock farm.
- Another advantage of getting a loan nowadays is that many banks also provide animal loan insurance. Therefore, it gives the animal farm owner additional profit and financial security. As the animal acts as capital in the farm, it is wise to invest in building this capital by getting financial support.
- Animal production will be sufficient to repay the debt in the long run. You can get a loan to start goat farming. Lack of funds is the main challenge for an individual who wants to start a livestock farm.
- Banks are offering insurance along with loans for goat farming. It provides security to animal farm owners.
- When you take a goat farm loan, you get plenty of time to repay the loan amount. And, you can easily pay the loan EMI from the products produced by the animals.
Various financial institutions offer loans at attractive rates to help individuals/groups start goat farming businesses. Loans offered are for various purposes, such as:
- Purchase of goats
- Purchase of equipment
- To buy land, fodder, etc
- For the construction of sheds and more
Can I get a goat farm loan?
NABARD provides goat farming loans with the help of various banks or lending institutions. According to the scheme of NABARD, people who fall below the poverty line, SC/ST category people will get a 33% subsidy on goat rearing.
Eligibility for goat farming loan
- The breed selected should be suitable for the drain and readily available at a reasonable cost.
- Adequate facilities and accommodation should be provided for grazing animals.
- Drinking water of good quality should be available.
- Veterinary aid should be easily and readily available.
- There should be good demand for mutton, wool, leather, and other goat products and secure marketing facilities.
- The farmer should preferably be a member of a cooperative goat-rearing society or association, which would be able to provide various facilities to its members and assist the bank in identifying, distributing, monitoring, and recovering borrowers.
The process to get a loan for Goat Farming from NABARD
- Go to any local agricultural or regional bank and fill out the application form for Goat Farming with NABARD.
- To get a subsidy from NABARD, it is necessary to submit your business plan. The plan should contain all relevant details about the goat farming project.
- Submit the application form and a business plan to get approval from NABARD.
- A technical officer will visit the farm and inquire about it before sanctioning the loan and subsidy.
- The loan amount is approved, and the amount is transferred to the borrower’s account. It is important to mention that the loan amount is only 85% (maximum) of the project cost. Therefore, the borrower must bear 15% of the cost.
This loan is directly credited to your bank loan account through NABARD. You have to pay a 10% margin money toward the total cost of the project. For commercial goat farming, many farmers in India are taking advantage of the agricultural loan subsidy provided by the Indian Government. This loan helps in starting a new goat farming venture. It is one of the schemes to employ rural people.
NABARD works with various financial institutions to provide loans for goat farming.
- Commercial Banks
- Regional Rural Banks
- State Cooperative Agriculture and Rural Development Banks
- State Cooperative Banks
- Urban Banks
- Other financial institutions are eligible for refinancing from NABARD.
SC/ST category people who are poor will get a 33% subsidy on goat farming under the NABARD scheme. Others who fall under OBC and the general category will get a 25% subsidy up to Rs. 2.5 lakhs
Features of goat farming loans
Goat farming loans can be used effectively to meet any expenses related to the breeding and management of goats. It includes the construction of cattle shed, the purchase of goats, the purchase of fodder, the purchase of land, and many more. A goat farming loan is a type of farm credit facility. The loan can be repaid within 5 years. It can be renewed annually. Reputed financial institutions offer goat farming loans.
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Mudra loan for goat farming
As goat rearing comes under agriculture, the Micro Units Development and Refinance Agency launched under PMMY will not provide loans for goat rearing under Mudra Loan Scheme. With the help of banks, MUDRA provides loans of up to Rs 10 lakh to individuals and businesses engaged in the non-agricultural sector for income-generating activities in the service and manufacturing sectors. However, the state and central governments have introduced various loan schemes and subsidies to promote goat farming.
Goat farming is classified under the farming sector. Thus, no Micro Units Development and Refinance Agency (MUDRA) provides loans for goat farming. The MUDRA scheme was launched under PMMY and aimed to provide funds to entrepreneurs in the non-farm sector. As part of this loan, these individuals can get a loan of up to ₹ 10 lakh for setting up or developing a business. However, a MUDRA loan is not provided for Goat Farming; you can avail of a loan under NABARD. Read on to learn more about the scheme and whether you are eligible.
IDBI bank loan for goat farming
IDBI Bank provides loans for goat rearing under its scheme ‘Agricultural Finance Goat Rearing.’ The loan they give for rearing goats is at least Rs. 50,000 and up to a maximum of Rs. 50 Lakh. This loan amount can be availed by individuals, groups, limited companies, Sheppard Co-op Society, and institutions engaged in this activity.
Goat farming loan from Union Bank
- Purchase of Goat
- Construction of Sheds (pens)
- Cost of feeding for one cycle
Quantum of loan: As per the latest NABARD guidelines, subject to the project’s economic viability.
- Up to Rs.1.60 lakh: None
- Above Rs.1.60 Lakh: Minimum 10%
- Loans up to Rs.1.60 Lakh – Assumption of Asset from Bank Finance.
- Loans of more than Rs.1.60 lakhs
- Hypothecation of the asset created out of bank finance and;
- Land mortgage (accepted value of land should not be less than 100% of the loan amount) and third-party guarantee (i.e., 100% of the loan amount) should not be less than %).
The farm loan is to be repaid in half-yearly/annual installments within a maximum period of 7 years, which includes a grace period of 01.
Goat farming loan interest rate
The interest rate on a goat farming loan is 9.90%; if you take a loan under the EDEG (Entrepreneurship Development & Employment Generation) scheme from Government, then the grace period is two years, in which you have to repay the goat farming loan in 6 to 9 years. The interest rate may vary from bank to bank; ask the manager about the interest rate before taking the loan and the grace period.
For subsidy through NABARD, inform the bank manager; if the bank is not providing subsidy, then go to another bank. Apply to the bank before the financial year to get the subsidy easily. The interest rate for goat farming loans from National Bank is 9.95% per annum. It can be higher if you borrow from private banks like AXIS Bank, ICICI Bank, HDFC, Kotak Mahindra, etc.
Documents required for goat farming loan
- Original Land Registry Papers
- Aadhar Card
- 6 months old Bank Account
- Caste certificate if SC/ST/OBC
- Domicile certificate
- 4 Passport size photo
- Goat farming project report
- Residential Proof
- Copy of Address proof like Ration card/ Voter ID/Aadhar/ PAN
- Identity proof copy like Aadhar card/ Driving license/ PAN/ Voter ID
- Supporting documents (if Any)
- Land registration documents
- Payment receipt
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Step-by-step process to get a loan for goat farming
- To get a subsidy for goat farming, visit any local agricultural bank or a regional bank with NABARD in your respective area. Please select the relevant state and district to view the appropriate address.
- To get a subsidy for goat farming from the concerned department, visit the office and get the application form.
- Please fill out the application form with the necessary information and details, and it should be verified with the applicant’s signature.
- Attach all the documents in the “Required Documents” section. Then, submit the application form and the business plan to the concerned authority from NABARD for approval.
- Also, pay the required fee for the process in the office as directed by the officials. Finally, make sure you get the receipt of the fee paid and keep it for future reference.
- The application documents will be sent for verification if there is any discrepancy. Then, a technical officer will visit the farm and inquire about it before sanctioning the subsidy.
- After all the processes are completed, the loan amount is approved, and the amount is transferred to the borrower’s account. It takes 30-45 days for the subsidy to be approved in the borrower’s account. The office shall notify the applicant of the subsidy grant in person or by any suitable means.
How can I get an SBI goat farm loan?
You can easily download the NABARD Bank online application form for the loan process. This Goat Farming Loan from SBI comes under the Integrated Development of Small Ruminants and Rabbits (IDSRR). Everyone knows that SBI is one of the largest state-owned banks in India, and most of the agricultural loans are given by this bank. Getting a subsidy is quite easy if you take a loan from SBI. Generally, the interest rate on goat farming loans from SBI is 11.20% per annum.
This SBI farm loan rate may vary from year to year. You can repay this loan in monthly installments or quarterly installments. You can also split the loan amount in between in advance. The bank will penalize you if you cannot pay the installment on time. It is the bank’s rule, and no one can escape the rules and regulations of the bank. The loan amount for Goat Farming will depend on the business’s needs and the applicant’s profile.
Applicants should submit a well-prepared business plan with all required business information such as area, location, breed of goats, equipment used, working capital investment, budget, marketing strategy, labor details, etc. SBI will approve the loan amount after the applicant fulfills the eligibility conditions. In addition, SBI may ask for the submission of land documents as collateral. The interest rate change depending on the profile of the applicant.
Goat farming loan from Canara Bank
Canara bank also offers low-cost goat farming loans to its customers. The loan can be used to purchase goats that are suitable for a particular area and will be reared there. Canara Bank provides Goat Farming Loans at competitive interest rates to its customers. This loan can be availed to purchase goats suitable for a particular area.
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- Features: The loan amount is determined according to the company’s needs.
- Repayment period: 4-5 years (repayable quarterly/semi-annually, including a 12-month gestation period). Bank loans up to Rs.1 lakh have zero margins, while loans above Rs. 1 lakh are 15-25%.
- Purpose: Purchase goats suitable for the area for rearing in a stall or free grazing conditions.
- Margin: Up to Rs.1.60 lakh – NIL, Above Rs.1.60 Lakh – 15-25%
- Up to Rs.1.60 Lakh – Hypothecation of livestock/Assets made from bank loan
- Above Rs.1.60 Lakh – Hypothecation of livestock/assets plus mortgage of land
Quarterly/semi-annually within 7 to 9 years installments inclusive of gestation period from 12 months to 18 months.
Commercial goat farming is becoming very popular day by day. Goat farming is a proven highly profitable business idea; hence, this business’s popularity is increasing rapidly in India. Goat farming is one such profitable animal husbandry enterprise. It employs landless farmers and marginalized people, but many young entrepreneurs have come forward for this business.
So, the Government of India is launching new schemes and providing subsidies to start this business. The Government now provides concessional loans to people to start goat farming to expand goat farming. Various commercial banks provide these loans with the support of NABARD. It is a major scheme aimed at reducing poverty and improving the standard of living of people in rural areas.
If you live in the following regions and states of India and plan to apply for goat farming loans from various banks, mudra, and NABARD, the above content may help you to know about bank interest rates, documents, and processes required for loans for setting up a goat farm.
|Central India||South India|
|Himachal Pradesh||Tamil Nadu|
|North India||West India|
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