Poultry Farm Loan: Features & Interest Rates from leading Banks

Poultry Farm loan is a type of business loan or working capital loan offered by various private and public sector banks to individuals, MSMEs, and business owners in rural or urban areas across the nation. Poultry loans are offered at competitive interest rates with flexible repayment options from several financial institutions.

Comparison of Interest Rates on Business Loans Offered by Top Banks/NBFCs

Bank/NBFCs	Interest Rate
Axis Bank	10.75% p.a. onwards
Flexiloans	1% per month onwards
HDB Financial Services Ltd.	8% - 26% p.a.
HDFC Bank	10.75% - 25% p.a.
IDFC First Bank	10.50% p.a. onwards
Indifi	1.50% per month onwards
Kotak Mahindra Bank	16% - 26% p.a.
Lendingkart	12% - 27% p.a.
Mcapital	2% per month onwards
NeoGrowth Finance	15% - 40% p.a.
Tata Capital	12% p.a. onwards
UGRO Capital	9% - 36% p.a.

Poultry Farm Loans from Top Banks

1) SBI Poultry Loan – MUDRA Loan under PMMY (Allied Agri)

Important allied activities covered under Mudra Yojana

• Poultry/Dairy/Fisheries
• Goat /Sheep/ Piggery rearing
• Bee Keeping
• Agri Clinic and Agri-Business Centers
• Others (promote livelihood and income generation), etc.

Interest Rate	(1 yr MCLR – 8.50%) + 2.75% = 11.25% p.a. onwards
Nature of loan	Agriculture Term Loan
Loan Limit	Up to Rs. 1 lakh no running OD that is renewable annually The loan limit beyond Rs.1 lakh: 5 years (60 months), including a moratorium/gestation period of 1 month as Drop Line Overdraft Limit
Loan Amount	Project Cost (A) Less Margin (B) Bank Loan (A-B)
Margin	Up to Rs. 50,000: Nil Rs. 50,000 – Rs. 10 lakh: 10%
Collateral	Not required up to Rs. 10 lakh Primary: Hypothecation of assets created out of the Bank Loan
Processing Fee	Nil up to Rs. 50,000 & 0.35% for amount from Rs. 50,000 – Rs. 10 lakh + GST
Moratorium	12 Months Maximum (Should be decided because of activity Financed)
Interest Subvention	Not applicable

2) PNB Poultry Loan

Scheme for Financing Poultry Farming

Interest Rate	Depends on the applicant’s profile and business requirements
Purpose	Investment Credit for construction of sheds Purchase of equipment and production credit for purchase of day old chicks, feed, medicines etc.
Nature of loan	Agriculture Term Loan – Short-term & Medium-term
Loan Amount	Shall be need-based
Repayment Tenure (Production Credit)	Maximum up to 18/12 months, the gestation period of 6/3 months in case of broilers and layers
Repayment Tenure (Investment Credit)	6-7 years, with gestation period of 12 months for layers and 3 months for broilers
Eligible entities	Under-employed people, individuals, landless agricultural laborers, small farmers, etc.
Unit Size Eligibility	Minimum poultry farm size should of at least 500 birds for subsidiary activity

3) Federal Bank Poultry Loan

Broiler Poultry Farming

Interest Rate	Depends on the applicant’s profile and business requirements (11% p.a. on Other Business Loans)
Purpose of loan	For the procurement of day-old chicks, purchase of feed, medicine, labor cost, power cost, veterinary expenses, etc.
Nature of loan	Agricultural Medium-Term Loan
Eligible Entities	Individuals, Sole proprietorships, Partnership firms, Companies & Co-operatives
Loan Amount	Min. Rs. 1,50,000 wherein the minimum flock size should be 500 birds per batch Loan Amount depends upon system of rearing 60% of the civil structures expenses as per project cost, 75% of the machineries and 75% of the working capital expenses can be financed under the scheme.
Repayment Options & Tenure	Term Loan up to 7 years & Cash Credit 12 months
Collateral/Security	Mortgage of land with a 10-20 % margin (Residential/Commercial Property only)

4) Bank of India Poultry Loan

Poultry Development Scheme for financing to Poultry Sector

Interest Rate	Depends on the applicant’s profile and business requirements
Nature of Loan	Term Loan & Working Capital Loan
Loan Amount	Collateral free loans of amount Rs. 1.60 lakh Based on unit cost fixed by DLTC/individual project cost
Eligible Entities	Individual, SHG/JLG groups consisting of poultry farmers, cooperative society, company or association of persons, partnership firms, proprietorship concerns/FPOs/FPCs, Pvt. Ltd. firms.

5) Canara Bank Poultry Loan

Loan for Poultry & Duck Rearing

Interest Rate	Depends on the applicant’s profile and business requirements
Purpose	For the establishment of layer/broiler farms and hatcheries For the purchase of chicks, feeds, and medicine For buying equipment, feed mixing plants For the construction of poultry sheds Working capital limits for purchase of chicks, feed, medicines
Margin	Up to Rs 1.60 lakhs – NIL, Above Rs 1.60 lakhs – 15-25%
Collateral/Security	Up to Rs 1.60 lakh – Hypothecation of assets created out of bank loan Above Rs 1.60 lakh – Hypothecation of assets plus mortgage of land where the development is proposed / investment is made

6) Bank of Baroda Poultry Loan

Financing Development of Dairy, Poultry, Fishery, etc.

Nature of Loan	Term Loan and Cash Credit
Interest Rate	Up to Rs. 3 Lakh Other than Crop Loan: 8.55% p.a. onwards Limit above Rs.3 Lakhs and less than Rs.25 Lakhs: 9.80% p.a. onwards Limit Rs. 25 Lakh and above 3 years & above and upto 5: 10.65% p.a. onwards Above 5 years and upto 7 years: 10.70% p.a. onwards
Purpose of loan	Funding for the establishment of units engaged in poultry, dairy, piggery, sericulture, and many more sectors
Eligible Entities	Individuals or groups including small and marginal farmers and agricultural laborers engaged in agriculture and allied activities
Processing Fees	Aggregate Agriculture exposure of Rs. 3.00 Lakhs- Nil For Working Capital (Fresh/Review) Above Rs 3 lakhs – Rs 10 Lakhs – Rs 250/- Lakh or part thereof +GST Above Rs 10 Lakhs – Rs 350/lakh or part thereof maximum Rs 35 lakh For Term Loan: Above Rs 3 Lakhs – 1 % of the limit sanctioned with a maximum of Rs 100 lakhs
Margin	Upto Rs. 1.00 Lakhs – Nil Over Rs. 1.00 Lakhs – 15 %
Repayment Tenure	Term Loan: For purchase of milch cattle – 4-5 years For fishery, piggery, apiculture, sericulture, etc. 3 to 7 years depending upon the economic viability of the scheme but not less than 36 months.
Inspection Charges	Nil for Aggregate Loan up to Rs 3.00 Lakh

Note: All the above and below-mentioned interest rates, fees, and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.

Poultry Farm loans can also be availed under various Govt. initiated loan schemes, such as NABARD, start-Up India, MUDRA under PMMY, PSB loans in 59 minutes, and other business loans types that include MSME loans, working capital loans, startup loans, etc. Applicants can avail generic business loans from private and public sector banks or NBFCs to start a poultry farming business.

Documents Required for Loan Application

• Duly filled poultry farm application form with passport-sized photographs
• Identity, Age, Address, Income Proofs of applicant, co-applicant
• Certificate of incorporation
• Business PAN card
• Poultry Farm Business Permit
• The permit from Animal Care Standards
• Invoice for purchase of equipment, cages, birds
• Plan and estimate for construction of the building
• Copies of land records regarding land owned/leased, certified by concerned Revenue Authorities
• Insurance Policy
• Any additional document required by the bank

FAQs 

Q. What Government schemes are available for broiler farming?

Ans. The Government schemes that are available for broiler farming include National Bank for Agriculture and Rural Development (NABARD), Poultry Venture Capital Fund (PVCF), etc.

Q. How much loan can I get for poultry farming?

Ans. The loan amount offered shall depend on business requirements and varies from lender to lender.

Q. Which bank gives loans for poultry farming?

Ans. There are several banks offering loans for poultry farming, such as HDFC Bank, SBI, PNB, Federal Bank, IDBI Bank, Axis Bank, Canara Bank, Bank of Baroda, Central Bank of India, Bank of India, etc.

Q. Can I get a Poultry Farm Loan without collateral or any security?

Ans. Some lender does offer poultry farm without security but most banks do require collateral or security to be deposited before taking a loan.

Also Read: How to get a loan to start a business without collateral?

Q. What is the taxability of poultry farm income?

Ans. Poultry farm income is tax-deductible under the Income Tax Act of 1961.

Q. What are the two types of businesses that can be done under poultry farming?

Ans. Layer farming and broiler poultry farming are the two types of businesses that can be performed under the Poultry Farming business.