NABARD Dairy Entrepreneurship Development Scheme
About This Loan
NABARD's Dairy Entrepreneurship Development Scheme (DEDS) provides capital subsidy for dairy farming and related activities. Subsidy of 25% (33.33% for SC/ST) on investments for establishing small dairy units, purchase of milch animals, milk processing equipment, and cold chain infrastructure.
Maximum Amount
Varies by component (e.g., ₹10 lakh for dairy unit of 10 animals)
Interest Rate
Bank's applicable MSME rate (9-12% p.a. typically)
Tenure
5-7 years with 6-month moratorium
Collateral
As per bank norms; subsidy reduces effective borrowing
Processing Fee
As per lending bank norms
Eligibility
Farmers, dairy cooperatives, NGOs, SHGs, milk unions, and individual entrepreneurs. No income ceiling. SC/ST get higher subsidy.
Application Process
- 1Prepare DPR for dairy project with help from State Animal Husbandry Department
- 2Apply at nearest commercial bank, cooperative bank, or RRB
- 3Bank appraises the project and sanctions loan
- 4NABARD releases subsidy (25-33%) to bank as back-end subsidy
- 5Subsidy adjusted against the borrower's loan outstanding
Documents Required
- Loan application form
- Identity and address proof
- Land/premises documents
- Detailed Project Report for dairy unit
- Quotations for cattle, equipment, and infrastructure
- Caste certificate (for higher subsidy, if applicable)
Official Links
Related Government Schemes
Disclaimer
This information is sourced from publicly available bank and financial institution websites. EduMetrics is not a financial advisor or lending institution and does not guarantee the accuracy of interest rates, eligibility criteria, or loan terms. Please verify all details with the respective bank before applying.