Avail Bank loan and subsidy in animal husbandry sector.
Given below are some important information which will be useful for farmer /entrepreneur interested in availing bank loan and government subsidy in livestock farming.
Who are eligible for a loan?-.Farmers, individual entrepreneurs, groups of unorganized and organized sector. Groups of organized sector include self-help groups etc.
Age– Generally 18-65 years
How to avail bank loan in animal husbandry sector?
Animal Resources Development/Animal Husbandry department is the facilitator department for Government subsidy schemes both of central and state government.
1-Visit your local veterinary/animal husbandry officer and financing bank.Discuss your Project & Government subsidy.
2-Fill your loan application & submit it with following documents.
a-ID PROOF ( Aadhar card, Passport / Voters ID card/ Driving License/PAN Card)
b– Residence proof (Tel/ Electricity Bill/ Ration card, Lease agreement/ Passport/Trade license /Sales Tax certificate)
d-Land record(ROR) of your proposed farm
e-A Detailed project report(DPR)
(Generally, a DPR is not required for small-scale finance But for large-scale finance DPR is mandatory)
3-Submit your loan application directly to a bank or through animal husbandry department. It is better to submit loan application through animal husbandry department with feasibility certificate from the local veterinary officer.
Margin Money– It is the contribution of entrepreneur for the project. Minimum margin money is 10% for most of the schemes but it varies from 10-25% as per project size and category of farmer.
For loans upto one lakh -Hypothecation of assets created out of bank finance
For loans above one lakh -Mortgage of landed property or third party guarantee.
Sanction of Loan &Disbursement –Bank will apprise loan application as per norm (technical feasibility and economic viability) and sanction if found eligible. The loan is generally sanctioned within one month from the date of receipt of application. The loan is disbursed in two or three phases depending upon progress off work.
The subsidy-financing bank will claim subsidy after disbursement of the first installment of a loan,(from NABARD in case of GOI schemes and SLBC in case state schemes.)
Repayment-Repayment period varies from 5-7 years depending upon the gross surplus of the project.