Purpose – Financing individuals for purchase of good quality high yielding milch animals, viz., cows/buffaloes or cross bred cows for milk production. Financing individuals for purchase and rearing of calves’ up to the stage of first lactation.
Eligibility – Individual borrowers undertaking dairying as subsidiary activity, individual borrowers undertaking commercial dairy as main activity etc
Quantum of Loan – Need-based loan should be provided. A unit of 2 milch animals is considered viable minimum size for such an activity for continuous production of milk. Cost of the milch animals should be in conformity with the unit cost circulated by Head Office.
Financing of three milch animal units under Swaranjayanti Gram Swarozgar Yojana (SGSY) may be considered
Security Norms – Up to Rs.50, 000/- Hypothecation of animals/crops/assets created out of bank loan; Above Rs.50, 000/ – Hypothecation of animals/crops/assets created out of bank loan; and charge on land as per Agricultural Credit Operations and Miscellaneous (Provisions) Act of the State concerned/Mortgage of agricultural land valued at 150% of amount of loan for other farmers and 100% of the loan amount for small farmers/marginal farmers; OR
Repayment of Loan – Loan for purchase of milch animals should be repaid within 5-6 years (spread over 2-3 lactations). Due date of repayment should be fixed on annual basis etc.