Poultry Farming Loan, Application Process Guide

Poultry Farming loans

Today, let us discuss the process of applying for a Poultry Farming Loan.

Poultry is one that is growing rapidly in the system of agriculture in recent days. The production of chicken and its eggs is growing at the rate of 11% per year. India at present is holding fifth place in the production of eggs and eighteenth place in the production of broiler chicken. The main factors which have been the reason for commercial growth in the broiler chicken are the increase in per capita income, an increase in the number of people residing in metropolitan or urban cities.

Previously, poultry farming used to be a household activity. It may just be spread to a particular neighborhood. But these days, poultry farming has become an industry with a particular structure and also operations. The investments have been done in all the processes of poultry farming such as hatching, breeding, rearing. In poultry farming, broiler chicken and eggs are the major products. The eggs are produced at a number of 40 billion, whereas the broilers are produced at 900 billion. When it comes to the meat from the poultry, it is at 750,000 tonnes.

Layer Poultry Farming:

These days, the meat and eggs of poultry are the main sources of proteins, vitamins and minerals, which would help to have a healthy life for a human being. The production of eggs and chicken and become very high in the commercial layer strains. Even the chicken is made available in large quantities in both the private and public sectors due to the superior germplasm. Based on the size of the farm, layer farming for eggs can be done which would be a great source for farmers to get income all around the year. The manure which is available from poultry farm has a great value in commercial crop production as it can be used for enhancing crop yield.


Financial assistance from banks:

NABARD by using the refinance facility is offering loans to the people who have opted for poultry farming through the banks. To get a loan for the poultry farming business, then you need to have clear business samples, project reports, and moreover, the layout details. The finances will be offered by banks for the following sections:

  • To construct the sheds for the poultry for breeding or growing.
  • To purchase the equipment which is needed to run a poultry farm.
  • To get the work of the infrastructure done such as providing electricity to the farm, medicines required, vaccination. This would be provided for a maximum of six months since the start of the poultry farm.

If you do not have any idea of how to prepare the project reports, you can take the help of Nabard consultancy services which will guide and help you in the preparation of a detailed project report as they are very much experienced in it.

Before preparing a plan, it is better to take the help of the persons who have good technical knowledge which is already taking part in animal husbandry or any private hatcheries. It is also better if you visit your local layer farms in order to know about the investment and profits. If you gain a very good knowledge of how a layer farm works, it would be an added benefit.

The project report you prepare for the application of loan in the bank should include all the technical, managerial, and financial information clearly.

Coming to the technical information:

  • The details regarding the location of the land, the size of land, the distance of the farm from the road, suitable conditions of the farm, etc.
  • The structures like sheds, space for eggs, storeroom, quarters to organize office etc.
  • The types of equipment and machinery needed to run the farm such as feeder, vaccinator, freezer, etc.
  • The area required to accommodate the poultry.
  • Number of birds in the poultry farm, vaccination, which has to be given to the chicks.
  • Availability of water, fuel, and power on the farm.
  • The efficiency of feed and production of eggs.
  • A chart including the details of flock projection.
  • Details regarding the marketing of eggs, the location where the marketing takes place, and the details of payment, whether the costs would be for each unit or per kg.

Read this: Government Schemes for Goat Farming Loan, Subsidy.

Coming to the information regarding finances:

  • The estimated cost of the project, which includes the cost of land, building for shelter, number of chicks, machinery required, etc.
  • Even the recurring costs should be included.
  • The details should also involve the bank loan and the amount of margin you are contributing.
  • Information regarding the investment and the estimated income.
  • Details regarding the schedule for repayment of the interest and the principal.

Coming to the information regarding the management:

  • The profile of the borrower should be included.
  • The details regarding the firm whether it is managed by an individual or partnership or corporation should be mentioned.
  • There should be some information provided on how the borrower would manage to make the proposed business successful and his/her capacity to handle the firm.
  • Any experience previously in a similar field.
  • The financial liability of the borrower.
  • Details of the staff of the farm which will include both technical and managerial departments and their qualifications.
  • Name of the bank, which is financing the farm and also its branch.
  • Any clearances required in terms of regulations for the land.
  • Any help which is available from the state government or central government.


The detailed project report which is prepared should be submitted to the local branch of the selected bank to get any assistance in the form of a credit to start or establish your layer farm. After submission, the bank will check the report and decides if it is feasible technically and financially.

Bank loan sanction and its disbursement:

After checking all the factors technically and financially, the bank will sanction the loan. This disbursement of the loan will occur in stages such as they would first provide the loan for the shed and then for equipment, etc. After the disbursement, there would be verification from the bank frequently.

Broiler farming:

There is a chicken, which is prepared specially for commercial purposes which are called broilers. These are selected because their growth is fast and moreover, these species have very high efficiency in the conversion of feed. To make broiler farming your primary source of income, then the size of the farm is very important. Even the manure which is collected from the poultry farm can be used as a fertilizer for commercial crop production to enhance the crop yield.

Broiler Chickens.
Broiler Chickens.


  • The investment to start a broiler farm will be less when compared to layer farming. It can be started small and then grown gradually depending on the business.
  • The period of rearing for broilers is approximately 6 weeks.
  • A large number of flocks can be accommodated in a single shed.
  • These species have a very good feed conversion efficiency.
  • The feed which is required for a broiler per unit of body weight is very less when compared to other species.
  • The returns can be expected quickly for a broiler farm.
  • There is more demand for broilers in the market when compared to other livestock.

Scope and Importance of Broiler farming:

  • In terms of the production of broilers, India has made very good progress in the last thirty years. As per the recent information regarding the broilers, the production of eggs in India is about 80 billion and the production of broilers is at 4.5 million tonnes.
  • The rate of growth of the layer farming is at 7%, whereas the rate of growth of broiler is at 10%.
  • Approximately three-fourths of the total contribution of eggs in the total egg production is from commercial broiler farms.
  • The total production of feed in poultry is 23 million tonnes in India. The poultry section of India has a value of One lakh crores.
  • In the future, there would be a tremendous increase in the production of broilers in India as the rate of consumption increases.
  • Even the state governments and central government are trying to create all the infrastructural and financial facilities for the farmers in order to attract the people to take up this business. Broiler production or farming is given major importance as it has a very good scope of development.

Read this: Dairy Farming Courses, Fees in India.

Financial assistance from banks:

To get the schemes or loans to set up a broiler farm, there needs to be a project report mentioning all the details regarding the equipment, machinery, cost of labour, water, electricity, feed, vaccinations, fencing, construction of sheds, cost of vehicles which are used to move the broilers to market, cold storage equipment, etc.

Project report preparation to apply for a bank loan:

A report regarding the project should be prepared after taking appropriate suggestions from the persons which are already involved in the animal husbandry techniques. You can also visit the local broiler farm so that you can get a clear view of investment and profits. It would be better if you undergo training sessions on maintaining a broiler farm so that it would help you in getting the basic knowledge. The following details would be necessary to include in the project report of the broiler farm:

Technical Information

  • The location of the farm, size of the farm, sitemap, the distance of farm from the nearest road.
  • The capacity of the farm i.e., the number of chickens, which the farm can hold.
  • The details about the sheds, godown, staff location, etc.
  • Required machinery and equipment like dressing equipment, waterer freezer for a cold storage facility, etc.
  • The environment near the farm, the area required for the farm should be mentioned.
  • The requirement of feed and the source of the feed should be mentioned.
  • The availability of water and power for the farm to be maintained.
  • The transport arrangements made to market the broiler chicken and eggs to the nearest market.
  • The veterinary equipment and aid which would be provided, the ratio of feed conversion of the chicken, and the mortality should also be mentioned.
  • The chart mentioning the flock projection is important.
  • The details regarding the marketing of the products and byproducts of the broiler farm are important. These details should include the location of the marketing and the payment in terms of individual or in kgs.
  • The borrower should also mention if there is any scope for integration farming or contract farming.

Financial information:

  • The information regarding the cost of the project such as capital investment. This includes the land of the farm, building for the broilers, machinery required, etc.
  • The details of any requirement of the loan from a bank and the contribution of margin.
  • The information about the expenditure on the farm and the expected income.
  • The schedule for repayment of interest and the principal amount should also be mentioned.

Management information:

  • The details of the borrower are a must.
  • The borrower should mention if the firm is handled individually or as a partnership or by any other means.
  • The experience of the borrower in a similar industry.
  • The liability of the borrower financially.
  • The details of the technical and managerial staff present on the farm and their qualifications.
  • Name of the bank, which is assisting the borrower for his/her establishment of a poultry farm along with its branch.
  • Any training facilities which are provided.
  • The details of any assistance from the state government or central government.
  • Any clearances required on regulations.

Poultry Project Appraisal:

The prepared project report should be given to the local branch of the bank to get the desired credit for the establishment of the farm. The bank will check if the project report which has been submitted is feasible considering the technical and financial factors mentioned.

Sanction and disbursement of loan:

After checking and making sure of the feasibility in terms of technical and financial matters, the project report will be approved by the bank and the loan will be disbursed. This will be done in two stages. First, the amount to construct the shed, cost of machinery, infrastructure will be provided. Later, the recurring cost will be provided to buy the chicks, their feed, and medicines.

Terms for lending the amount from the bank:

  • The project outlay will be considered and this depends on the size of the firm and the components which need investment as per the report. The current market prices will be considered.
  • The margin is completely dependent on the category in which the borrower belongs and his/her eligibility. The margin will be ranging between 12% to 27%.
  • The interest rates will be decided by the banks based on the guidelines of RBI. The rate of interest will be basically at 11 % to 12% per year.
  • The repayment of the loan will be decided based on the gross mentioned in the project report. But generally, the repayment period is will be for 8 years maximum.
  • There would be insurance provided for the shed and the equipment along with the birds.

In case if you are interested in this: Quail Farming Business Plan.


  1. I would like to establish poultry farm, I am looking for subsidy loan for poultry business. Please provide information and documentation in this regard.

  2. I am interested in stabling a poultry farm, Please proved the information and documents to get subsidy loan for poultry business

  3. I am interested in kadaknath chicken poultry farm. Please provide the related information and documents to get subsidy loan for poultry farm

  4. Dear Sir,

    Please help me in making project report as i want to start with a broiler poultry farm (initially with 5000 chicks) . I have to present this in bank for loan


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