Poultry Farm Loan by Government: Key Features and Benefits

Poultry farming in India has evolved into a profitable venture. However, starting and maintaining a poultry farm requires substantial financial investment. A poultry farm loan by government is a specialised loan to support individuals and MSMEs in rural and urban areas.This blog explores the features, interest rates, and application process for poultry farm loan by government.

• The poultry farm loan by government allows you to set up your poultry farm business easily.
• Poultry farm loan by government are available at public and private sector banks, NBFCs (non-banking financial corporations) and MFIs (microfinance institutions).
• You can avail of different poultry loan amounts based on your business needs.
• If you are a woman or belong to the SC/ST or EBC (economically backward class) class, you can get a subsidy on a MUDRA loan.

The MUDRA (Micro Units Development and Refinance Agency) loan for poultry farms provides poultry loan by government of up to ₹10 lacs for poultry farming.You can avail of the poultry farm loan by government from public and private sector banks, non-banking finance companies (NBFCs) , regional rural banks, microfinance institutions (MFIs), and state and urban cooperative banks.

• Under the Shishu scheme, you get afarm loan murgi of up to ₹50,000 for small businesses aspiring to begin on a small scale.
• Under the Kisho r scheme, you can avail of loans from ₹50,001 to ₹5 lakhs for established poultry farms requiring additional funds for mobilisation.
• Under the Tarun scheme, you can avail of loans above ₹5 lakhs to ₹10 lakhs for established poultry farms to expand or upgrade their machinery.

• There are three categories of the poultry farm loan scheme :
• You can avail of collateral-free loans up to ₹1.6 lakhs.
• If you are a women entrepreneur or belong to special categories (SC/ST and EBC), you can get a subsidy loan for poultry farm .

There are two poultry farm loans by the government available at subsidised rates.

Animal Husbandry Infrastructure Development Fund (AHIDF)

Under AHIDF, you can use a loan to develop technologically assisted poultry farms and poultry feed plants. Features of AHIDF loan: Here are some of the critical features of the AHIDF loan:

• Under AHIDF, you can get a 90% loan with a 3% interest subvention provided by the Central Government.
• If you are registered under MSME (micro, small, and medium enterprises), you can get a credit guarantee of 25% of total borrowings projects fulfilling the definition of MSME projects.

Loan Under the National Livestock Mission (NLM)

You can avail of a 50% subsidy up to ₹25 lakhs under the NLM. Features of NLM loan: Here are the key features of NLM loan:

• You can avail of a loan under NLM to establish a parent farm, rural hatchery, brooder cum mother unit for a minimum of 1000 parent layers for hatching eggs.
• Your plant should accommodate the rearing of the chick for up to four weeks in the mother unit.

If you want to avail of a poultry farm loan, here are the loan details from top Indian banks:

State Bank of India

Interest Rate : Starts from 11.25% p.a. Loan Limit : Project cost- Margin (Margin will be nil up to ₹50,000 and 10% beyond that) Collateral : Yes, above ₹10 lakhs

Punjab National Bank

Interest Rate : Subjective to the applicant’s profile and business details Loan Limit : Actual need-based Collateral : Guarantee coverage

Bank of India

Interest Rate : Subjective to the applicant’s profile and business details Loan Limit : Collateral-free loans of amount ₹ 1.60 lakhs. Based on unit cost fixed by DLTC/individual project cost Collateral : Yes, above ₹1.60 lakhs

Bank of Baroda

Interest Rate : For limit up to ₹3 lakhs - One-year MCLR+ SPLimit between ₹ 3 lakhs and ₹25 lakhs- One-year MCLR+ SP+1.25% Loan Limit : Need-based Collateral : YesDo you want a loan to start a poultry business without collateral? You must explore the collateral-free business loan from Aditya Birla Capital Limited.

Here are the key documents required to apply for a poultry farm loan by government :

• Duly filled application form with pasted passport-sized photographs.
• Identity, age, address, and Income proof of applicant and/or co-applicant.
• Education and training certificate.
• Certificate of incorporation, if applicable.
• PAN card.
• Poultry farm business permit and animal care standards.
• Complete project details, including total cost, net income, and project viability.
• Certified copies of land records regarding land owned/leased.
• List of machinery and equipment.

If you're looking to start or expand your poultry farming business, you need to meet specific eligibility criteria for a murgi palan loan. Here’s who can apply:

1. Individuals Whether you’re a small-scale farmer or an entrepreneur, you can apply for a poultry loan to establish or grow your farm.
2. Private Companies and Section 8 Companies Registered private firms and Section 8 companies involved in poultry farming can secure financial assistance to enhance operations and infrastructure.
3. Self-Help Groups (SHGs) If you're part of an SHG engaged in poultry farming, you can apply for this loan to support your group's collective farming efforts and improve productivity.
4. Joint Liability Groups (JLGs) JLGs, formed by small farmers or entrepreneurs, can avail of a murgi palan loan to share financial responsibility and scale up poultry production.
5. Farmer Cooperatives (FCOs) FCOs involved in poultry farming can use these loans to expand their businesses, improve farm conditions, and boost overall efficiency.
6. Farmer Producer Organisations (FPOs) FPOs, which bring together groups of farmers, can access murgi palan loans to invest in better farming practices, technology, and sustainable growth.

Poultry farm loans by the government are crucial for the growth and sustainability of the poultry farming sector in India. These loans offer subsidised interest rates and there is no need for any collateral to avail of small loans, making them accessible and affordable for farmers.Poultry farmers can enhance their operations and improve productivity and profitability with these loans.