Are you looking for a loan to invest in animal farming?

This article is written for the benefit of farmers and dairy farm entrepreneurs by Pashushala.com

Budget 2020: Nirmala Sitharaman sets FY21 farm credit target at ₹15 lakh crore.

Numerous schemes have been proposed in Union Budget 2020-21. These are:

  1. Rashtriya Gokul Mission
  2. National Program for Diary Development (NPDD)
  3. National Dairy Plan (Phase I)
  4. Dairy Entrepreneurship Development Scheme (DEDS)
  5. Support to Dairy Cooperatives
  6. Dairy Processing Infrastructure development

Well then let’s talk about one such propitious scheme for your entrepreneur ideas- DEDS (Dairy Entrepreneurship Development Scheme) is one of the operating schemes implemented by NABARD (National Bank for Agriculture and Rural Development) by the Government of India. This scheme aims to provide self-employment and alternative income generation to farmers. 

 Wait, so most importantly…….

1. What are the eligibility criteria for DEDS?

2. Activities that come under this scheme?

3. How the cost is funded?

4. Procedure to follow?

So, let’s explore!

The loan is given by eligible financial institutions:

  • Commercial Banks (CBs) 
  • Regional Rural Bank (RRBs) 
  • State Cooperative Banks (StCBs) 
  • State Cooperative Agriculture and Rural Development Banks (SCARDBs) 
  • Such other institutions, which are eligible for refinancing from NABARD.

Note: The loan is given by the bank, not by NABARD but NABARD provides a subsidy to the bank on your loan account.

 

1. Eligibility criteria for DEDS

An individual entrepreneur, farmer, Group of farmers, Self Help Groups, Dairy Cooperative Societies, District Milk Unions and Panchayati Raj Institutions are eligible under the scheme.

2. Activities covered

  • Establishment of a small dairy unit from 2 to 10 milch animals or Rearing of heifers (up to 20 calves), Vermi-Compost
  • Purchase of Milking Machines, Milk testers & BMCs (up to 5000 litres capacity)
  • Purchase of Milk Processing equipment for the manufacture of indigenous milk products, 
  • Transportation & Cold Storage facilities,
  • Establishment of private veterinary clinics, 
  • Setting up of Milk Parlour for enhancement of milk production, 
  • Procurement, Cold chain and Transportation facilities, 
  • Processing and Marketing of milk & milk products.

You can purchase livestock online through by clicking here or download the app here.


3. Funding structure:

This scheme is being implemented through NABARD which provides financial assistance to commercially bankable projects with a loan from Commercial, Cooperative, Urban and Rural banks with a back-ended capital subsidy of 25% of the project cost to the beneficiaries of the general category and 33.33% of the project cost to SC & ST beneficiaries.

"This is first-come, first-serve basis".

4. Procedure:

1. Talk with Bank manager regarding your project and go with a cost estimation of the project.

2. Under the guidance of Bank manager fill the following form

     You can download the form here.

3. The manager has to apply for the loan under a stipulated time frame, for sanction from NABARD.

4. The pattern of Assistance:

  • Back ended capital subsidy @ 25% of the project cost for general category and @ 33.33 % for SC/ST farmers. The component-wise subsidy ceiling will be subject to indicative cost arrived at by NABARD from time to time.
  • Entrepreneur contribution (Margin) for loans beyond Rs.1 lakh* -10% of the project cost (Minimum). Thus, you might have to contribute 10% of the project, if it is greater than 1 lakh. [* Subject to any revision in RBI guidelines]

5. Your loan will be sanctioned. 

Components that can be financed are given below:

source:http://dadf.gov.in/sites/default/filess/Dairy_Eng_Brochure.pdf


For more information please visit: 

1.Dairy Entrepreneurship Development Scheme (DEDS) for Government contact person details and other information:

http://dadf.gov.in/sites/default/filess/Dairy%20Entrepreneurship%20Development%20Scheme%20%28DEDS%29.pdf

2. Department of Animal Husbandry and Dairying:

https://epashuhaat.gov.in/?module=p_marketplace&action=incentives


Location: India

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