What is a Dairy Farm Loan?

A Dairy Farm Loan is a specialised term loan facility designed to support dairy farmers in maintaining and expanding their cattle and dairy operations. This loan provides the necessary liquidity to cover essential expenses such as cattle feed, animal healthcare, equipment repairs, and general upkeep of the dairy unit, ensuring smooth and sustained operations.

The facility is currently available in key dairy-producing states, including Rajasthan, Gujarat, Uttar Pradesh, Uttarakhand, Maharashtra, and Madhya Pradesh. It serves as a vital financial tool for farmers seeking stability and growth in their dairy farming activities.

For those planning to expand their dairy business or invest in new infrastructure, a dairy farm business loan offers a comprehensive solution tailored to meet both operational and capital investment requirements.

Features and benefits of dairy farm loan

  • Substantial amount

    Substantial amount

    Avail of a quick business loan from Bajaj Finance with minimum eligibility to get a high-value.

  • Flexi Loan

    Flexi Loan

    Get dairy farm loans with a Flexi Loan facility to withdraw funds from a pre-sanctioned amount and pay interest only for the withdrawn amount.

  • Quick approval

    Quick approval

    Get quick loan approval upon submitting the documents required and meeting the eligibility criteria for the dairy farm loan.

  • No collateral

    No collateral

    Even first-time business owners can avail of our dairy farm loan without keeping any assets as security.

  • Easy repayments

    Easy repayments

    Choose a repayment tenure from 12 months up to 96 months. Use our business loan EMI calculator for precise and instant EMI calculations.

Eligibility and documents required for dairy farm loan

Check out the eligibility parameters for a dairy farm loan before proceeding.

  • Business vintage

    Business vintage

    At least 3 years

  • Age

    Age

    18 - 80*
    (*age should be 80 at the time of loan maturity).

  • CIBIL Score

    CIBIL Score

    Check your CIBIL Score for FREE

    685 or more

  • Citizenship

    Citizenship

    Indian resident

Documents required

  • KYC documents - Aadhaar/ passport/ voter’s ID
  • PAN card
  • Proof of business ownership
  • Other financial documents

Advantages of a dairy farm loan

A dairy farm loan offers crucial financial assistance to individuals engaged in dairy farming, helping them efficiently manage day-to-day operations and long-term investments. By accessing structured financing through a dairy farm loan, farmers can ensure steady production, improve profitability, and plan for sustainable growth. Some of the key advantages include:

  • Access to working capital: Ensures availability of funds to manage daily operational costs like feed, labour, and utilities.
  • Livestock care and maintenance: Supports regular health check-ups, vaccinations, and veterinary care to maintain animal productivity.
  • Infrastructure development: Can be used to build or upgrade cattle sheds, install milking machines, or improve cold storage facilities.
  • Business expansion: Enables farmers to increase herd size or diversify into allied activities like milk processing and packaging.
  • Flexible repayment options: Many dairy farm loans come with convenient repayment schedules aligned with farm income cycles.
  • Minimal collateral requirements: In several cases, loans may be offered with minimal or no collateral, especially under government or NBFC schemes.
  • Support during lean periods: Provides a financial cushion during off-seasons or periods of market volatility, helping farmers maintain operations.
  • Boosts credit profile: Timely repayment of loans helps build a positive credit history, aiding future access to finance.

Interest rates and charges on dairy farm loan

Type of fee

Applicable charges

Rate of interest

14% to 26% per annum

Processing fees

Up to 3.54% of the loan amount (inclusive of applicable taxes)

Bounce charges

Rs. 1,500 per bounce.

“Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason.

Flexi Fee

Term Loan - Not applicable
Flexi Term Loan (Flexi Dropline) - Rs. 999/- (inclusive of applicable taxes)
Flexi Hybrid Loan (as applicable below) -

  • Up to Rs. 6,499/- (inclusive of applicable taxes) for loan amount less than Rs. 1000000/-.
  • Up to Rs. 8,999/- (inclusive of applicable taxes) for loan amount from Rs. 1000000/- to Rs. 1499999/-.
  • Up to Rs. 13,999/- (inclusive of applicable taxes) for loan amount from Rs. 15,00,000/- to Rs. 24,99,999/-
  • Up to Rs. 16,999/- (inclusive of applicable taxes) for loan amount of Rs. 25,00,000/- and above.
    *The Flexi charges above will be deducted upfront from the loan amount
    *Loan amount includes approved loan amount, insurance premium, VAS charges, and documentation charges.

Penal charge

Delay in payment of instalment(s) shall attract Penal Charge of Rs. 40 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount.

Part-prepayment charges*

Full Pre-payment

  • Term Loan: 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment
  • Flexi Term Loan (Flexi Dropline): 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.
  • Flexi Hybrid Loan: 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.

Part Pre-payment

  • 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part Pre-Payment.
  • Not Applicable for Flexi Term Loan (Flexi Dropline) and Hybrid Flexi.

Stamp Duty (as per respective state)

Payable as per state laws and deducted upfront from loan amount

Broken period interest

Broken period interest/ pre-EMI interest shall mean the amount of interest on Loan for the number of day(s) which is(are) charged in two scenarios:

Scenario 1 – More than 30 days from the date of loan disbursal till the first EMI is charged:
In this scenario, broken period interest is recovered by the following methods:

  • For Term Loan: Deducted from the loan disbursement
  • For Flexi Term Loan: Added to the first instalment
  • For Flexi Hybrid Loan: Added to the first instalment

Scenario 2 – Less than 30 days from the date of loan disbursal till the first EMI is charged:
In this scenario, interest is charged only for the actual number of days since the loan was disbursed.

Annual maintenance charges

Term Loan – not applicable.
Flexi Term Loan (Flexi Dropline): Up to 0.413% (inclusive of applicable taxes) of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges.

Flexi Hybrid Loan: Up to 1.18% (inclusive of applicable taxes) of the total withdrawable amount during initial loan tenure. 0.413% (inclusive of applicable taxes) of total withdrawable amount during subsequent loan tenure.

Principal Holiday Facility Fees

Principal Holiday (as applicable below) - (Inclusive of applicable taxes)

Up to Rs. 6499 (Inclusive of applicable taxes) for loan amount less than Rs. 10,00,000.
Up to Rs. 8,999 (Inclusive of applicable taxes) for loan amount between Rs. 10,00,000 and 14,99,999.
Up to Rs. 13,999 (Inclusive of applicable taxes) for loan amount between Rs. 15,00,000 and Rs. 24,99,999.
Up to Rs. 16,999 (Inclusive of applicable taxes) for loan amount Rs. 25,00,000 and above.

Note-
The above principal holiday facility fees will be deducted upfront from loan amount.
Loan amount includes approved loan amount, Insurance Premium and VAS Charges.


*Switch Fee is applicable only in case of switch of loan. In switch cases, Processing Fees and Documentation Charges will not be applicable.

How to apply for a dairy farm loan?

1. Click on APPLY ONLINE to access the application form.

2. Enter your mobile number and verify it using the OTP sent to your phone.

3. Provide basic personal and business-related information in the form.

4. Upload your bank statements for the past 6 months and submit the application.

Once your application is submitted, our representative will get in touch with you to guide you through the next steps in the approval process.

Interest rates and charges

Diary farm loan comes with nominal interest rates and no hidden charges. To view the list of the fees applicable on this loan, click here.

Frequently asked questions

What is the interest rate of dairy farm loan?

The interest rate of dairy farm loan varies depending on various factors such as your credit score, business vintage, income, etc. Bajaj Finance provides competitive interest rates and no hidden charges on dairy farm loans.

What is the maximum amount of dairy loan?

The maximum amount of dairy loan depends on your eligibility and creditworthiness. Bajaj Finance offers dairy farm loans of up to Rs. 80 lakh.

Which type of loan is dairy loan?

Dairy loan is a type of working capital loan that allows you to purchase or upgrade equipment, machinery, livestock, feed, etc. for your dairy business.

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