Canara Bank Dairy Loans - Supporting Dairy Farming Ventures

Construction of cattle shed
Purchase of high yielding milch cattle (yielding not less than 5 litres per day)
Purchase of dairy equipments, cattle feed and for cultivation of green fodder.
Expenditure incurred for transportation of animals where the animals are not purchased locally.
Initial feed cost for a period of 1 month at the rate of 120 kgs. per animal for the first batch of animals.
Setting up of on farm processing and pasteurization plants.
Loans can be extended for purchase of Crossbred heifer and/or for its rearing till it reaches lactation period.
Known cattle breeders and technically qualified entrepreneurs can be financed for purchase of non descript cows for getting crossbred progeny and for its rearing upto maturity or till it is sold, whichever is earlier.

Farmers, Individual entrepreneurs, NGOs, companies, groups of unorganized and organized sector etc. Groups of organized sector include Self Help Groups (SHGs), Dairy cooperative societies, milk unions, milk federations etc.
The farmer should have cattle shed/arrangements enough to house the existing animals if any and also those proposed to be purchased.
The farmer should be cultivating green fodder or should have definite arrangements for its supply.
Drinking water should be available in the area.
Veterinary facilities should be readily and easily available including facility for artificial insemination.
The farmer should have experience/ knowledge in maintaining dairy animals.
There should be assured marketing facilities.
Artificial insemination facilities should be available within easy reach.
The Heifer should be of good breed and in good health.

Margin	Up to Rs.2.00 lakhs - Nil Above Rs.2.00 lakhs - 15-25%
Security	For loans up to Rs. 2,00,000/-: Hypothecation of assets created out of our finance. Compulsory coverage for Credit Guarantee under CGFMU. For loans above Rs. 2,00,000/- and up to Rs. 3,00,000/- (with Tripartite agreement with Milk Union): Hypothecation of assets created out of our finance. Compulsory coverage for Credit Guarantee under CGFMU. For loans above Rs. 2,00,000/- and up to Rs. 3,00,000/- (without Tripartite agreement with Milk Union): Hypothecation of assets created out of our finance. Compulsory coverage for Credit Guarantee under CGFMU. In case of developmental activities like construction of cattle shed, fish pond, poultry shed, or creation of other immovable assets, mortgage of land where primary activities are undertaken is required. If developments are undertaken on leased land and legislation permits mortgage of leasehold rights: Mortgage of leased hold rights may be insisted. Compulsory coverage for Credit Guarantee under CGFMU. If leasehold rights are not mortgaged, collateral security with a minimum value of 150% of the loan amount will be required. In such cases, coverage under CGFMU will be waived subject to obtaining permission from the RO Head. For loans above Rs. 10,00,000/-: Hypothecation of assets created out of our finance. In case of developmental activities like construction of cattle shed, fish pond, poultry shed, or creation of other immovable assets, mortgage of land where primary activities are undertaken is required. If developments are undertaken on leased land and legislation permits mortgage of leasehold rights, mortgage of leasehold rights may be insisted. If leasehold rights are mortgaged, immovable security should be obtained, valued at a minimum of 50% of the loan amount. If leasehold rights are not mortgaged, immovable or equivalent collateral security should be obtained, valued at a minimum of 150% of the loan amount, with at least 50% of the security being Residential/Commercial properties (Land & Buildings backed by approved building plan). Availability of security by way of immovable property/ies secured by mortgage to a minimum extent of 100% of the loan/exposure as prime and collateral securities.
Repayment Period	Loans granted for the purchase of dairy animals should be repaid within 5-7 years in suitable monthly/quarterly installments. When the loan is granted for rearing heifers for the ultimate production of milk, the loan may be repaid within 5-6 years, including an initial grace period of 30 months. Moratorium: Projects involving shed construction, pasteurization, etc., may have a moratorium of 12-18 months, on a case-by-case basis. Otherwise, 1-2 months moratorium may be considered. Gestation Period: Should be linked with the lactation period to cover the dry period of the animal (generally, a 6-month gap is provided for the introduction of animals in batches to ensure continuity of milk production).