What are the types of dairy farm loans available?

Dairy farmers in India can access different types of loans to meet their varied needs. Some key loan options include:

1. Livestock Purchase Loans: These loans help farmers buy milch animals (animals that make milk) like cows, buffaloes, goats or sheep. The loan can be used to cover the costs of high-yielding breeds like Holstein Friesian or indigenous cattle like Gir.
2. Infrastructure Loans: These loans can finance infrastructure like cattle sheds, milking machines, bulk milk chillers, and waste management systems. Because the costs are high, loan tenures can be high as well. Many financial institutions offer these loans with subsidies under government schemes.
3. Working Capital Loans: These loans are designed to cover day-to-day expenses like animal feed, medicines, fodder, and labour are crucial. Working capital loans provide farmers with continuous access to operating capital for managing daily expenditures without disruption.
4. Dairy Expansion Loans: These are specialised dairy expansion loans that cover the costs of increasing herd size, additional sheds, and equipment for farmers looking to expand and grow their production.
5. Diversification Loans: These are meant for dairy farmers looking to diversify into value-added products like packaged milk, cheese, butter, ghee, etc. The loans can cover equipment, packaging lines, marketing expenses and other costs to enter product manufacturing and sales.