Farmers looking to expand their dairy business have good news. The State Bank of India (SBI) is offering a dedicated Animal Husbandry Loan under its agricultural and allied activities segment. Through this loan, farmers can get financial support of up to ₹70,000 for purchasing a cow and up to ₹80,000 for purchasing a buffalo, depending on unit cost and project requirements. This scheme is designed to strengthen rural dairy farming, increase milk production, and provide steady income opportunities for livestock owners.
What Is the SBI Animal Husbandry Loan?
SBI offers loans under its Allied Activities category, which includes dairy, poultry, fisheries, and other livestock-related units. The Animal Husbandry Loan specifically helps farmers purchase high-yielding cows and buffaloes, build sheds, buy equipment, and manage initial expenses. The bank evaluates the project cost based on breed, productivity, and local market prices before sanctioning the loan.
Loan Amount: ₹70,000 for Cow & ₹80,000 for Buffalo
The loan amount is determined according to the assessed cost of animals:
For cows, SBI provides financial assistance up to ₹70,000 per animal.
For buffaloes, the assistance goes up to ₹80,000 per animal, depending on breed quality and milk production capacity.
These benchmarks reflect common unit costs used in dairy financing, but the final sanctioned amount may vary based on local pricing and bank evaluation.
Eligibility Criteria for Farmers
To apply for this loan, farmers must be actively involved in dairy or livestock farming.
Both small and marginal farmers, dairy entrepreneurs, SHGs, and joint liability groups can apply.
Applicants must provide identity proof, land or shed details, and a basic dairy project plan.
SBI checks repayment capacity and agricultural background before approving the loan.
How to Apply for the Loan
Farmers can apply by visiting their nearest SBI branch that handles agricultural loans.
Provide KYC documents, land records, quotations for animals, and project details.
A field officer may inspect the farm or dairy shed before processing the loan.
After verification and approval, the loan is sanctioned, and the amount is released directly to the seller or farmer as per SBI norms.
Interest Rate and Repayment
SBI offers attractive interest rates under agriculture and allied activities, usually lower than regular commercial loans.
Repayment tenure depends on the lactation cycle and income flow, typically spanning several years.
Some borrowers may also receive a moratorium period, giving them time to establish the dairy unit before starting EMI payments.
Benefits of SBI Animal Husbandry Loan
This loan helps farmers invest in premium milch animals without financial burden.
It ensures availability of better-quality cows and buffaloes, increasing overall milk production.
Farmers can generate a regular income stream, which helps improve their financial stability.
The loan also encourages rural entrepreneurship by supporting dairy startups and small-scale dairy units.
Important Things Farmers Should Know
The cost of animals varies by region and breed, so final loan amounts may differ.
Farmers must maintain proper care, feed, and health of animals to secure consistent income and timely loan repayment.
In some states, government subsidies may also be available through dairy development programs, which can reduce the effective loan burden.
Conclusion: SBI’s Animal Husbandry Loan is a valuable opportunity for farmers planning to expand or start a dairy business. With financial support of up to ₹70,000 for cows and ₹80,000 for buffaloes, farmers can invest in high-yield animals and strengthen their dairy production. The scheme offers flexible repayment, low interest rates, and strong support for rural livelihoods, making it one of the most beneficial agricultural loan programs in 2025.
Disclaimer: Loan amounts, interest rates, and eligibility rules may vary by region and branch. Applicants should verify the latest details directly with their nearest SBI branch before applying.
