Goat farming loans can be used for purposes like land purchase, shed construction, buying goats, purchasing feed, etc. The government has initiated various new schemes and launched subsidies for entrepreneurs to start goat farming businesses. Some of the leading banks and Govt. initiated loan schemes introduced to start goat farming businesses include the following:
Loan Schemes for Goat Farming
Goat Farming Loans from SBI
The interest rate and loan amount for goat farming shall depend on the business requirements and the applicant’s profile. The applicant should present a well-drafted goat farming business plan that should contain all the necessary business details like area, location, goat’s breed, equipment used, working capital invested, budget, marketing strategies, details of workers, etc. After the applicant qualifies the eligibility criteria, then SBI shall sanction loan amount as per the requirement for commercial goat farming. SBI may ask to submit the land papers as collateral.
Features of loan for KCC for Animal Husbandry & Fisheries including Goat Farming
Note: If the loan is not repaid on the due date, the interest rate will be linked to 1 Year MCLR + Spread as determined by SBI from time. SBI 1-Year MCLR is 8.50%. (Present interest rate: One Year MCLR 8.50% + 3.25% i.e. 11.75% p.a.)
Eligibility Criteria
Farmers, Poultry farmers are either Individual or joint borrowers, Joint Liability Groups, or Self Help Groups (SHGs) that include Tenant farmers of goats having owned, rented, or leased sheds.
Loans under NABARD for Goat Farming
National Bank for Agriculture and Rural Development’s (NABARD’s) prime focus regarding goat farming is to support small and medium farmers to enhance the production of livestock farming which shall eventually result in increased employment opportunities.
NABARD offers goat farming loans with the help of various financial institutions, such as
Canara Bank’s Sheep and Goat Rearing Loans
Canara Bank also provides Sheep and Goat rearing loans to its customers at competitive interest rates. The loan can be availed for the purpose of the purchase of goats suited to a specific area for rearing.
Features:
Purpose:
Margin: Loans Up to Rs 1 lakh – NIL, Loans above Rs 1 lakh – 15-25%
Security:
Repayment Tenure:
Note: A certificate from Dept of Animal Husbandry/Forest Department recommending goat rearing in the area.
Loans from IDBI Bank for Goat & Sheep Rearing
IDBI Bank offers business loans for sheep and goat rearing under its scheme ‘Agriculture Finance Sheep & Goat Rearing’. The loan amount offered by IDBI bank for sheep and goat rearing is a minimum of Rs. 50,000 and the maximum is up to Rs. 50 lakh. This loan amount can be availed by individuals, groups, limited companies, Shepard co-op society, and entities that are engaged in this activity.
Mudra Loans under PMMY for Goat Farming
As goat farming falls under the farming sector, therefore loans for goat farming shall not be provided by banks under the Micro Units Development and Refinance Agency MUDRA loan scheme launched under Pradhan Mantri Mudra Yojana (PMMY). Mudra with the help of banks offers loans of the amount up to Rs. 10 lakhs to individuals and enterprises engaged in the non-farming sector income-generating activities in the services and manufacturing sectors. There is no collateral/security required by the bank/lender and the loan amount can be repaid within 5 years, with nil to nominal processing fees. However, the state and central governments have launched various loan schemes and subsidies to promote goat farming.
Documents Required
Here you can check and compare various business loan or working capital loan options under a single online platform. The loan amount or interest rate may vary from bank to bank, as it depends on various factors, such as the applicant’s creditworthiness, repayment capability, credit score, financial stability, etc.
What types of banks are eligible to offer loans under NABARD?
Types of Banks that are eligible to offer loans under the NABARD scheme are as follows:
Which breed should I choose for goat farming?
You can opt for a breed that suits your business requirements from the following:
