Goat Farming Loan

Goat farming presents a profitable business opportunity with potential for long-term growth, as it demands minimal investment in healthcare and housing. Goats adapt well to various climatic conditions and can yield valuable products such as milk, meat, and fiber.

To start or grow a goat farming business, you need funds to meet various working capital needs, including:

• Purchase land 

• Purchase livestock 

• Feed livestock 

• Construct sheds

Take advantage of goat farming loans from the government as a farmer or entrepreneur to support this lucrative business and boost your revenue.  

You may need to meet the requirements set by the bank or scheme you are applying to or under. To qualify for a goat farming loan, meet the following general criteria:

• Be a farmer, specifically a goat farmer

• Apply as an individual or as part of a joint application

• Belong to a self-help group or joint liability group

When applying for this loan, it is essential to have the right documentation ready. This helps streamline the application process and ensures you meet the requirements of the financial institution. Here are the typical documents required for a goat farming loan:

• Duly filled application form with four passport-sized photographs

• Identity proof (Aadhaar card, driving licence, voter ID)

• Address proof (ration card, voter ID, utility bills)

• PAN card

• Income proof (bank statements for the last 6 months)

• Caste certificate, if applicable

• Education and training certificate

• Goat farm business permit

• Complete project details, including total cost, net income, and project viability

• Certified copies of land records regarding land owned/leased

• Certificate of incorporation, if applicable

The government has established various schemes to help cover initial setup costs, feed, healthcare, and other essential expenses of this business. Below are two prominent loan options you can utilise for goat farming:

Mudra Loans for Goat Farming

The Micro Units Development and Refinance Agency (MUDRA) offers loans of up to ₹10 Lakhs to help you establish or grow a business. These loans are also available for micro enterprises in the agri-allied sector, including goat farming.

You can obtain a Mudra loan for goat farming from public and private sector banks, as well as state and urban cooperative banks. There are three categories of loans available:

• Shishu Scheme: Get up to ₹50,000 for small enterprises in the initial stages

• Kishor Scheme: You get loans ranging from ₹50,001 to ₹5 Lakhs for established goat farms that need additional funds for operations or expansion

• Tarun Scheme: Loans from ₹5 Lakhs to ₹10 Lakhs are available for those looking to expand or upgrade operations

Women entrepreneurs and individuals from special categories (SC/ST and EBC) may also be eligible for subsidies on such loans.

Goat Farming Loan Under NABARD

The National Bank for Agriculture and Rural Development (NABARD) promotes project clusters under Area Development Schemes (ADS) for goat rearing and farming. 

Here are some of the financial institutions that NABARD works with to offer loans under the animal husbandry sector: 

• Commercial Banks

• District Cooperative Central Banks

• Regional Rural Banks 

• State Cooperative Banks

The target beneficiaries who can take these loans include:

• Farmers or individual entrepreneurs 

• Women in Self-help Groups 

• Joint Liability Groups 

• Farmer Producer Organisations 

• Farmers’ Collectives 

They are selected by departments under state departments of rural development or agriculture departments. Some beneficiaries may also get subsidies from state or Central government schemes for the National Livestock Mission. These may include:

• 25% subsidy to those from the general category

• 33.33% subsidy to SC/ST beneficiaries

The process differs based on the loan scheme under which you plan to apply. If you intend to apply for a subsidy from NABARD, you can visit the closest branch or a bank that works with NABARD to offer financing. You can apply for the Mudra loan online on the Udyamimitra portal. 

Usually, you need to provide details such as the following either online or by filling in a physical application form:

• Amount of loan required

• Comprehensive business plan 

• Identity and address

Submit all the required documents for approval as per the scheme. An officer representing the lender may visit your farm to assess it before the sanction of the loan. After the approval, you will receive the funds in your bank account.