Top Banks Offering Dairy Farm Loans in 2025

Starting a dairy farm in India can be a rewarding business for you. But you often need external funds to scale up. It helps you in buying new animals, installing units or building larger sheds. You should be aware of the dairy farm financing options. That's why knowing the right bank for a dairy farm loan in India is important.

Let's explore some of the top banks offering dairy farm loans in 2025.

Why Dairy Farm Financing Matters?

A dairy farm loan gives you financial support to:

• Expand your infrastructure, like cattle sheds, milk-collection units or chilling vans
• Purchase animals, fodder equipment and modern machinery
• Manage your working capital like feed, veterinary care and labour during the early days
• Take advantage of government schemes or subsidies that support dairy farmers and help reduce your costs

What to Check Before Applying?

Before you apply for a dairy farm loan, make sure you check:

• Interest rate
• Loan tenure and amortisation
• Margin or down payment
• Repayment flexibility
• Collateral/security
• Government scheme tie-ups

With this in mind, here are five top banks offering dairy farm loans in 2025:

1. State Bank of India (SBI)

SBI dairy farm loan offers you allied-activity loans for dairy, poultry and fisheries under its agriculture and rural banking vertical. Its “Allied Activities – Dairy, Poultry & Fisheries” page shows interest rates from 7.50% p.a. onwards for dairy projects.

In addition, under KCC (Kisan Credit Card) for allied activities up to ₹2 lakh, interest at present is fixed at 7% p.a. for timely repayment.

2. HDFC Bank

HDFC dairy farm loan provides allied-activity financing, including dairy under “Allied Activities – Dairy, Poultry & Fisheries”. It also has a “Digital Cattle Finance” product for dairy farmers supplying to milk societies or FPOs (Farmer-Producer Organisations).

While exact public interest rates for “Dairy Farm Loan” are not always listed, HDFC emphasises flexible repayment, minimal paperwork and high project-value funding in the allied-agri segment.

3. Axis Bank

While specific public data on dairy-farm loans under Axis Bank is limited, it gives you its agri-business credit and allied-activity financing. When comparing lenders, Axis often features in lists of the best bank for dairy farm loan, thanks to the competitive Axis Bank dairy loan interest rate and flexible tenure.

4. Bank of Baroda

Bank of Baroda offers you a mini-dairy unit NABARD dairy loan scheme, where the subsidy component often comes into play. As per comparative listings, this makes BOB a noteworthy option under the dairy loan schemes 2025. This could be the best bank for dairy farm loan for your project.

5. Government-scheme backed options & NBFCs

Although not a bank, it is worth noting that schemes such as the Animal Husbandry Infrastructure Development Fund (AHIDF) offer you a government loan for dairy farming with interest subvention and can be routed via partner banks. Also, NBFCs provide dairy farm financing, but you will still want to compare rates from banks.

A Comparison

*Always check with the specific bank as rates depend on location, project size, your credentials and subsidies.

How Can You Use My Mudra to Simplify the Journey?

My Mudra connects you with banks/NBFCs. With us, you benefit from:

• One platform to compare interest rates, tenures and repayment modes.
• Simplified application where you fill in your details once, and we help you engage with the bank.
• Guidance on eligibility, documents and choice of scheme. We are making your dairy farm financing options more transparent.

Summing Up

If you are looking for a dairy farm loan in India to set up or scale your dairy unit, the right bank and dairy loan schemes 2025 make a significant difference. With My Mudra’s help, you can compare, evaluate and apply with confidence. We ensure you secure funding that suits your dairy business and growth ambitions.

Also Read: How to Get a Dairy Farm Loan in India