All About PM Dairy Loan Yojana

All About PM Dairy Loan Yojana

The administration has devised several appealing initiatives to boost villages while also advancing the urban region. The government is introducing several programs to boost farmer income and create jobs in rural and cities. This scheme is being prioritised in villages so that unemployed people do not migrate to cities in search of work. Unemployed people in cities are also being given a chance to start their businesses.

Objective of PM Dairy Loan Yojana

Farmers, rural landless laborers, and the unemployed are being encouraged to pursue self-employment by the government. The government also provides attractive credit facilities for persons living in rural areas to help with this. A special scheme has been created to allow farmers cheap loans to start animal husbandry and allied enterprises to boost their revenue. It’s known as the PM Dairy Loan Scheme or the Dairy Entrepreneurship Development Scheme. The main objective of this scheme is to encourage people to start dairy businesses and undertake other relevant activities by providing loans and other resources.

Eligibility Criteria of PM Dairy Loan Yojana

  • The applicant must be between the ages of 18 and 65 while applying for the Dairy Entrepreneurship Development Scheme.
  • Both country farmers and city residents who desire to participate in the dairy industry can apply for a loan under the Dairy Entrepreneurship Development Scheme.
  • Apart from that, this scheme offers loans to both organised and unorganised sector organisations, NGOs, and small businesses.
  • Loans are also available to self-help groups, cooperatives, milk organisations, and milk federations, among others.
  • This scheme is available to all members of a family who take out individual loans. A specific criterion for this is that each person’s dairy should open in a different location. There should be at least 800 meters between these dairies.
  • That person, who has once accepted a loan under this scheme, will not be eligible for another loan under this scheme.
  • A loan is provided for the acquisition of two to ten animals for animal husbandry under this programme. You can borrow money to buy a milch breed cow or buffalo. If you like, you can choose milk-producing cows such as Sahiwal, Gir, Rathi, Red Sindhi, and Jersey. Similarly, you must select the buffaloes that produce the most milk.
  • Under the PM Dairy Loan, you can also acquire a loan for your dairy product business. You can also use this scheme to get a loan to acquire milk processing equipment.
  • This scheme also allows you to acquire a loan for projects such as a dairy parlor, a milk cold storage facility, or vermicompost.
  • The applicant will be required to put up 10% of the total cost of his business proposal.
  • The government has placed restrictions on the support for animal husbandry. If you took out a loan for an animal husbandry, you must finish the animal husbandry work within two years after receiving the loan. Then you will be eligible for a subsidy. You will not be eligible for the subsidy if the work takes more than two years.

The National Bank for Agriculture and Rural Development has been assigned the primary task of running the Dairy Entrepreneurship Development Scheme, and candidates can obtain a direct loan from this bank. Apart from that, the government has designated several banks under this scheme. You can apply for a loan by going to the nearest branch of your favorite bank from the list of banks.

The government provides a loan subsidy to the applicant under this scheme. The amount of this subsidy varies according to caste. The subsidy amount is distributed according to government rules to the general, OBC, SC, and ST groups under the Dairy Entrepreneurship Development Scheme. In this case, the SC/ST category receives a subsidy of 33% of the entire expenditure, whereas the general category receives just 25% of the subsidy.

Documents Required for PM Dairy Loan Yojana

To apply for a loan under the PM Dairy Loan Yojana, you must have certain documentation. The following is a list of these documents:

  • Identity Card, Voter ID, Aadhar Card, Pan Card
  • Address proof
  • Caste certificate
  • Applicants taking a loan of more than one lakh rupees will have to keep their land-related documents ready so that they can be given on demand.
  • Latest passport-size photograph of the applicant
  • Written details on how the applicant intends to use the money and how long he plans to repay it.
  • Verification of your source of income and the amount of money the applicant earns.
  • Phone number of the applicant


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