Loan for Chicken Farming – Interest Rate, Subsidy & Eligibility (2026 Guide)

In India, many farmers want to start a chicken farming business and decide to take a loan for chicken farming to manage the first big costs more comfortably. A well-planned farm loan can support their construction work and working capital at the right time. The real challenge is choosing a loan that suits the farm size, bird cycle, and repayment capacity. 

This guide explains the concept of a poultry farm loan, covering cost, subsidy, eligibility, and loan options.

What is Chicken Farming Loan? 

A loan for chicken farming comes under the agricultural loan, which is designed to fund the operational costs, set-up costs, and expansion of the poultry business. It usually covers two parts. One part goes into fixed assets such as sheds, feeders, water systems, and electrical work. The other part supports running expenses such as chickens, feed, medicines, labour, and utilities

This can also be referred to as a murgi farm loan, poultry development finance, allied activity finance, or a commercial loan for chicken farming.

Poultry Farm Setup Cost in India

The poultry farm cost overall depends on the capacity of the materials used in this business. The following is a sample estimation for the poultry farm setup 

Interest Rate & EMI Calculation of Loan for Chicken Farming

The table below shows the interest rate of top banks for a loan for chicken farming

EMI Calculation

If a farmer takes a ₹10 lakh poultry farm loan for 5 years, the monthly EMI changes based on the interest rate offered by the bank. At SBI’s starting rate of 11.25% p.a., the EMI comes to around ₹21,867 per month. With Bank of Baroda’s 9.80% p.a. rate slab, the EMI drops to nearly ₹21,149 per month for the same loan amount and tenure. 

Subsidy & Government Schemes 

Subsidy support is narrower than bank finance. Below are the two schemes which may be useful for poultry entrepreneurs

1. National Livestock Mission (NLM)

This scheme supports entrepreneurship development in the poultry sector. Eligible projects can receive 50% capital subsidy up to ₹50 lakh, paid in two instalments.

2. Animal Husbandry Infrastructure Development Fund (AHIDF)

The scheme offers 3% interest subvention for regular repayments, a moratorium of up to 2 years, and a repayment tenure of up to 10 years. 

AHIDF is more relevant for poultry-linked infrastructure such as feed manufacturing, processing, and other support units around the farm. It is not the same as a simple shed-only poultry farm loan, so the project report needs to match the scheme's purpose.

Eligibility Criteria of Loan for Chicken Farming

Below are the common eligibility criteria across many banks in India to take a loan for chicken farming

• The applicant must be an indian resident
• The age should be between 16 and 75 years; if the age is more than 60 years, a co-borrower is needed
• The applicant must have their own land; if there is no own land, he/she should lease the land
• The minimum flock size should be 2,000 birds per cycle for a broiler farm 
• The minimum batch size should be 10,000 birds for a layer farm 

Documents Required of Loan for Chicken Farming

The following are the most important documents for poultry farm loan:

• Passport-size photos
• KYC documents such as Aadhaar,  PAN or Passport
• Land ownership papers or lease proof for the shed site.
• A project report showing bird count, shed size, feed cost, sales plan, and repayment plan.
• Bank statements and income proof
• Quotation or estimate for shed, equipment, chicks, and other project items.
• Training or experience proof for poultry activity, especially for commercial farms
• Invoices for purchased equipment such as borewells, water purifiers, and bird cages

Bank & NBFC Loan Options

Poultry farm loan search usually starts with banks because agricultural and allied activity products already exist there. An NBFC route can also help where the business is structured, and the borrower wants a faster digital comparison 

1. SBI 

This loan for chicken farming suits small farmers and first-time poultry owners who want a government-linked agriculture loan for poultry and allied farming activities. It is mainly useful for borrowers looking for lower collateral pressure and flexible repayment support for starting a poultry unit.

2. PNB 

PNB’s poultry farm loan is suitable for farmers planning both poultry shed construction and regular farm operations. The loan covers equipment, chicks, feed, medicines, and other day-to-day poultry expenses under one structure.

3. Federal Bank 

This option works well for broiler farm owners who already have land and want funding for commercial poultry batches. It is designed mainly for medium-term broiler poultry farming requirements.

4. Bank of India

This loan is suitable for individual poultry farmers, SHGs, JLGs, partnership firms, FPOs, and small poultry businesses. It supports both project-based poultry finance and working capital needs.

5. Canara Bank

Canara Bank’s poultry farm loan fits borrowers planning layer farms, broiler farms, hatcheries, or duck rearing units. The loan also supports sheds, feed, medicines, poultry equipment, and other infrastructure expenses.

6. Bank of Baroda

This loan is suitable for poultry and allied farm businesses looking for both long-term funding and working capital support. It can be considered for poultry expansion and regular farm operations.

Profit & ROI in Poultry Farming

The profit and ROI in the field of poultry farming depend on the total investment and daily operations. To understand the profit margin and ROI in poultry farming, check the figures below from the Hema Poultry Farming broiler project report 

• Total project cost: ₹10 lakh
• Bank finance: ₹8 lakh
• Promoter contribution: ₹2 lakh
• Poultry capacity: 2,000 broiler birds
• Estimated first-year revenue: ₹12.80 lakh
• Estimated fifth-year revenue: ₹16 lakh
• Estimated first-year profit before tax: ₹2.79 lakh
• Projected net profit ratio: 10% to 19%
• Average ROI in the project works out to around 15% to 20% based on projected yearly profits and investment size
• Average DSCR: 1.73
• Average break-even point: 69.46%
• Loan repayment period: 5 years

Conclusion

A good loan for chicken farming is the one that matches farm size, flock cycle and repayment ability. For a starter unit, a poultry farm loan can be built around shed cost, birds and feed. For a bigger unit, the right loan for chicken farming may need a stronger project report, a larger loan limit, and a subsidy route such as NLM. 

The most practical approach is to compare the poultry farm business loan amount with the expected cash flow from each batch, not with the loan sanction alone.

My Mudra can help you find the best bank loan for poultry farm according to your requirements. With My Mudra’s largest banking network across 170 branches, we can help you shortlist suitable banks matching your budget. Compare your options and find the right loan for chicken farming with ease.

Also Read:
- Loan for Goat Farming in India – Apply Online, Subsidy, Eligibility (2026 Guide)
- Cow Loan / Dairy Farm Loan for Buying Cows in India (2026 Guide)