1. Animal Husbandry

Goat Farming: Check Which Banks Offer Loans for Rearing Goats

Ayushi Raina
Ayushi Raina
Goats on field

Goat Farming Loan is a type of working capital loan which is used for livestock management and breeding. Goat Farming Business requires some amount to get started.

To meet the working capital needs and maintain a healthy cash flow, customers can opt for goat farming offered by various financial and government institutions.

Being one of the finest livestock management departments in the country, goat farming is becoming more and more popular with high profit and revenue potential. It is a profitable and sustainable business with a long term vision.

Commercial goat rearing is mainly done by large enterprises, traders, industrialists and producers. Goat rearing is a major source of milk, skin and fiber.

Some of the major banks and government schemes launched to start goat farming business include the following:

Goat Farming Loan from SBI

The interest rate and loan amount will depend on the requirements of the business and the applicant's profile. The applicant should submit a well prepared goat farming business plan which should include all the required business details like area, location, breed of goat, equipment used, working capital investment, budget, marketing strategy, details of workers etc. After the applicant meets the eligibility criteria, then SBI will sanction the loan amount as per the requirement for Commercial Goat Farming

SBI may ask to submit the land papers as collateral.

Loan under NABARD for goat rearing

The main focus of the National Bank for Agriculture and Rural Development (NABARD) with respect to goat farming is to support small and medium farmers to increase the production of livestock farming, which will ultimately result in increased employment opportunities.

NABARD provides Bakri Palan Loan Yojana with the help of various financial institutions, such as:

• Commercial Bank

• regional rural bank

• State Co-operative Agriculture and Rural Development Bank

• State co-operative bank

• Urban bank

• Other Financial Institutions eligible for Refinance from NABARD

According to the scheme of NABARD, people belonging to the below poverty line, SC / ST category will get 33 percent subsidy on goat rearing. For OBC and other groups of people falling under the general category, a maximum of Rs.2.5 lakh will get 25% subsidy.

Canara Bank Sheep and Goat Farming Loan

Canara Bank also offers sheep and goat farming loans to its customers at competitive interest rates. Loans can be taken for the purpose of procuring suitable goats for a specific area for rearing.

Properties

• Loan Amount: Depends on business requirements.

• Repayment Period: 4 to 5 years (including 12 months gestation period to be paid quarterly/half yearly)

• Margin: Loan up to Rs.1 lakh – Nil and loans above Rs 1 lakh – 15-25%

• Security: For loans up to Rs.1 lakh: Hypothecation of assets created out of finance received!

• For loans above Rs.1 lakh: Mortgage of land properties and hypothecation of crops/properties created out of the finance received.

Documents Required to Apply for Goat Farming Loan

• Duly filled application form with passport size photograph.

• Applicant's KYC documents, such as proof of identity, age and address.

• Applicant's Aadhar Card! BPL card, if available! Caste certificate, if belonging to SC / ST or OBC category.

• Income proof with bank statement of last 6 months.

• Business Establishment Proof!

• Domicile certificate and original land registry papers.

• Any other document required by the lender.

Check out and compare various business loan or working capital loan options.

The loan amount or interest rate may vary from bank to bank, as it depends on various factors, such as creditworthiness of the applicant, repayment capacity, credit score, financial stability, etc.

Like this article?

Hey! I am Ayushi Raina. Did you liked this article and have suggestions to improve this article? Mail me your suggestions and feedback.

Share your comments

Subscribe to our Newsletter. You choose the topics of your interest and we'll send you handpicked news and latest updates based on your choice.

Subscribe Newsletters