Goat farming is increasingly becoming popular in India due to multiple reasons. The rising demand for goat milk (due to medicinal properties) and goat meat is making a large number of farmers to take the plunge into entering goat farming. Government and various social organizations on their part are also encouraging goat farming as a means to fight unemployment and eradicate poverty.

What is a Goat Farming Loan?

A goat farming loan is a type of financial support designed specifically for those looking to start or expand their goat-rearing business. The goat business is a profitable venture due to the high demand for goat products such as milk, meat, and skin. The loan can be used by farmers or entrepreneurs to purchase essential assets like land for sheds, goat feed, and other operational needs. The Government of India, through various schemes, including subsidies, encourages the development of goat farming. This makes it a viable business opportunity.  

Advantages of applying for a Goat farming loan:

There are several purposes to go for a loan for Goat rearing or Goat farming. The advantages of such loans are as follows:

1. One of the leading advantages of acquiring such loans is that the individual gets a capital resource for starting the farming. Lack of sufficient finances is a major hurdle for many individuals aspiring to start an animal husbandry farm.
2. The next advantage of acquiring a loan in current times is that several banks provide insurance along with loans for animal husbandry. This gives the animal farm owner an additional profit and financial security.
3. Insurance coverage along with the loan ensures that farmers are financially protected in case of loss or diseases affecting the animals. 
4. As the animal acts as capital on the farm, it is wise to invest in building this capital by acquiring financial assistance. The production done by animals will be enough to pay off the loan in the long run.
5. Loans can be repaid over time, with many banks offering flexible repayment schedules based on income generated from the farm.  
6. Financial institutions offer loans at competitive goat farming loan interest rates, which can be used for a variety of purposes. It can be for purchasing goats, buying land or fodder, construction sheds or acquiring the necessary equipment. 

Eligibility Criteria for Goat Loan

To apply for a goat farming loan, you must meet certain criteria:

• You should be a farmer or engaged in cattle or poultry farming.
• The loan can be taken individually or with a co-borrower.
• You can apply as a part of a Self Help Group (SHG) or Joint Liability Group (JLG)
• General business loan requirements, such as credit history and repayment capability, also apply, depending on the lending institution and scheme.

Goat farming policies and loans available in India

Different State governments in association with banks and NABARD offer subsidy schemes to increase goat farming. It is highly profitable and a sustainable kind of business with appreciable returns in the long term. To help the individuals/groups start the goat farming business, loans are offered by different financial institutions at attractive rates. The loans offered are various purposes such as:

1. Purchase of goats
2. Purchase of equipment
3. To buy land, feed, etc
4. To build the shed and more.

To incentivize goat farming in India, the Central government has contributed through different schemes, one such scheme is through NABARD.

Commercial Goat Farming Loans

Various institutions offer goat farming schemes or loans:

NABARD loan for goat farming:

The NABARD scheme for goat farming is at the forefront to provide loans for goat farming at very attractive rates. To get the NABARD subsidy, the borrower needs to cover usually 10% of the project cost as the margin money. The NABARD goat farming loan apply online results in the loan being credited to the borrower’s account through the NABARD-associated banks. It enables farmers to start their goat farming ventures. This loan is aimed at creating employment opportunities in rural areas. It is especially helpful for farmers interested in commercial goat farming. It offers loans to borrowers in association with different financial institutions like:

1. Commercial banks
2. Regional rural banks
3. State co-operative agriculture and Rural development banks
4. State co-operative banks
5. Urban banks
6. Others that are eligible for re-finance from NABARD

Under the scheme, a borrower is entitled to receive 25-35% of money spent on purchasing goats as subsidy. People belonging to SC/ST community and belong to BPL category can get subsidy up-to 33% while others belonging to OBCs are liable for 25% subsidy with a maximum amount is Rs. 2.5 lakh.

Apart from NABARD,  you can get loans for goat farming from the following:

Goat Farming Loans from SBI

State Bank of India (SBI) offers loans for goat farming based on the specific requirements of the business and the applicant’s profile. A comprehensive business plan that includes critical aspects like the location, goat breed, equipment, capital, and marketing strategies must be submitted. Once the eligibility criteria are met, SBI will approve the loan as per the business needs. In some cases, land papers may be required as collateral.

Features of the KCC Loan for Animal Husbandry & Fisheries, Including Goat Farming

• Interest Rate: 7% per annum (fixed) under Government of India guidelines

• Loan Amount: No minimum limit, maximum ₹2 lakh for new applicants, ₹3 lakh for animal husbandry

• Type of Facility: Farm Credit- Agriculture 

• Repayment Period: 5 years with annual renewal 

• Margin: No separate margin is required

In case of delayed repayment, the interest rate will be adjusted to SBI’s 1-Year MCLR+Spread. Currently, SBI’s MCLR (Marginal Cost of Funds-Based Lending Rate) stands at 8.50%, making the effective interest rate 11.75% per annum if not paid on time. 

Canara Bank Sheep and Goat Rearing Loans

Canara Bank provides tailored loans for goat and sheep rearing. It offers flexible financial solutions at competitive rates. These loans help finance the purchase of goats or sheep suitable for the local region, along with the construction of necessary stalls for housing. This loan helps the purpose of buying goats/sheep suitable for the area and building a shed for animals. 

Features:

• Margin: No margin required for loans under ₹1 lakh and 15-25% margin for loans above ₹1 lakh
• Security: Hypothecation of assets is required for loans below ₹1 lakh and for loans above ₹1 lakh, hypothecation of assets plus mortgage of landed property is required
• Repayment Tenure: For sheep, the tenure is within 5 years, with 12 to 18 months gestation, paid semi-annually. For goats, the tenure is 4-5 years, with a 12-month gestation period, repaid quarterly or semi-annually.

Applicants must obtain a certificate from the Department of Animal Husbandry or Forest Department recommending goat rearing in the area.

Loans from IDBI for Goat and Sheep Rearing

IDBI Bank offers specialised loans for goat and sheep farming under its “Agriculture Finance Sheep & Rearing” Scheme. The loan ranges from ₹50,000 to ₹50 lakh. It is available to individuals, cooperatives, limited companies, and other entities involved in this farming activity. 

MUDRA Loans under the PMMY for Goat Farming

While MUDRA loans under the Pradhan Mantri Mudra Yojana (PMMY) are aimed at the non-farming sector, they do not provide direct loans for goat farming. However, MUDRA offers loans up to ₹10 lakh for income-generating activities in the service and manufacturing sectors. The loan can be repaired within five years, with minimal processing fee and no collateral is required. For goat farming, borrowers can explore various state and central government schemes designed specifically for livestock promotion. 

Loans for Non-Banking Financing Companies (NFBCs)

Many NFBCs like Lendingkart do not have a specific goat farming subsidy. However, Lendingkart provides working capital loans and MSME loans for micro, small, and medium enterprises. These loans are available at a minimal interest rate with easy processing aimed at helping small businesses achieve success. 

Process to get a loan for goat farming:

1: Visit any local agriculture bank or regional bank and fill the application form for the goat farming with NABARD.

2: It is necessary to present your goat farming business plan to avail subsidy from NABARD. The plan should contain all the relevant details about the goat farming project.

3: Submit the application form along with the business plan to get approval from the NABARD.

4: A technical officer will visit and inquire about the farm before the sanctioning of the loan and subsidy.

5: The loan amount is sanctioned and the money is transferred to the borrower’s account. It s important to underline that the loan amount is only 85% (maximum) of the project cost. 15% of the cost has to be borne by the borrower.

Documents Required for Goat Farming Loan

The documents required to get a loan for goat farming are:

1. Photos: 4 passport-size photographs
2. Address proof: Ration card, Voter ID, utility bills
3. Identity proof: Aadhar card, Driving license
4. Caste certificate (for SC/ST applicants)
5. Goat farming plan
6. Land registration documents
7. Bank statements for 6 months preceding the loan application date

Goat farming is proving to be a lucrative and sustainable business for a large number of people living below the poverty line. Goat farming not only helps in providing employment to a large section of people but also adds nutrition to the meal of the deprived people. Government with the intention to increase cattle farming now provide subsidized loan to people to start goat farming. These loans are provided through various commercial banks in association with NABARD. It is a major scheme with the intention to lower poverty and improve the standard of living of people in rural areas. The individual can also visit Lendingkart’s official website to know more about the goat farming loans.

What are the benefits of rearing goats?

Some of the benefits of rearing goats are as follows:

1. Goat meat is very popular among the masses and the demand is growing rapidly making the goat farming business a profitable one.
2. Goats provide meat, milk, manure for fields throughout the year with minimum maintenance.
3. There is no need for large farms to raise goats, compared to big animals goats need less space.
4. Grazing in fields and agriculture waste makes it economical to raise goats.
5. Goat milk has medicinal qualities and fetches better rates than other quality of milk.
6. Goats are better disease resistant than other animals
7. Goats reproduce very quickly helping in increasing the number of goats.

Conclusion 

Applying for a goat farming loan under the NABARD scheme is an effective way to access financial support for starting or expanding your livestock business. With the availability of subsidies and government-backed loans, small to medium farmers can tap into opportunities that promote rural employment and sustainable farming practices. By getting goat loan apps or partnering with banks or NFBCs, applicants can find loan solutions that match their unique needs. For those looking to build a profitable enterprise, Lendingkart can offer additional support through its financial solutions and resources tailored to Indian businesses. 

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Goat Farming Loan FAQs:

1. How can I get a NABARD loan for a goat farming scheme?

To obtain a NABARD loan for a goat farming scheme in India, follow these steps:

• Research goat farming project details.
• Prepare the required documents for the loan application.
• Apply online through NABARD’s official portal.
• Explore potential subsidies for goat farming.
• Learn how to start goat farming successfully.

2. What types of banks are eligible to offer loans under NABARD?

Banks authorized by NABARD are eligible to offer loans for goat farming projects in India. You can apply for a goat farming loan online through these banks. To start goat farming and secure a subsidy, ensure you have the required documents for the loan application process.

3. How much milk does goat produce daily?

The daily production of milk largely depends on the breed of the goat, however, on an average, a goat gives 2-3 litre of milk.

4. What is the profit margin in the Goat Farming business?

The profit margin in the goat farming business can vary widely based on factors like scale, management, and market demand. In India, starting a goat farming project can yield good returns. Government subsidies may be available, and loans can be applied for online through various platforms, including LendingKart. To start goat farming, learn how to manage the business efficiently and ensure you meet the required documentation for loans.

5. How much land is sufficient to raise goats?

Depending upon the land quality, it requires around 1.5 acres of low-quality land to raise 2-4 goats. In the high yielding area, 1.5 acre of land is enough to sustain 6-8 goats.

6. What kind of shelter is required to raise goats?

Goats do not require elaborate shelter arrangements for keeping. Just basic facilities with adequate feed, water, and hygiene are sufficient for goats. However, during rain or winter, some basic protection is required.

7. Is it necessary to milk goats every day?

It is essential to milk the goats every day at least once. They need to be milked otherwise they develop mastitis.

8. How much does it cost to buy a goat?

There are different types of goat and depending upon the breed it may cost on an average between Rs.25,000 to Rs. 35,000 for a goat.

9. Is it important to have knowledge about goat rearing for goat farming loan?

Yes it is necessary to have the knowledge or working experience with goats to start a goat farm and goat farming loan.

10. What are some of the difficulties in rearing goats?

Some of the difficulties are:
1. Lack of knowledge to rear the goats and medicines for goats in case of any disease.
2. Transportation of goats is very difficult.
3. Lack of resources to start a goat farm.

11. Can humans get infected with diseases from goats?

Yes it is possible for humans to get infected from goats. Some of the diseases are – ring-worms, Cryptosporidia, E-coli, Q fever, psittacosis, Rabies, contagious ecthyma, salmonellosis, and more.

12. Can one avail a goat farming loan under MUDRA?

No goat farming loans are not sanctioned under the MUDRA scheme. As the goat farming comes under the farming sector, one can avail loan for goat farming from NABARD.