For the vast majority households living in the rural areas of India the livestock industry and animal husbandry are vital that provide steady sources of food, income and financial security. They are the Pashupalan (or “animal husbandry”) loans which are provided through central and state schemes along with NABARD-linked interventions as well as bank products designed to increase access to low-cost credit for marginal and small farmers, women’s self-help groups (SHGs) and new rural entrepreneurs.
In 2026, we’re seeing an increase in policy focus and a number of program updates that provide loans as high as 5 lakh rupees (and occasionally higher in certain types of projects) easier to access for cattle farmers who are poor by facilitating applications, subsidies and more flexible options for repayment and collateral.
What is the Pashupalan Loan Yojana?
“Pashupalan Loan Yojana” is an umbrella term that refers to different bank-backed and government-backed credit lines that are designed to finance livestock husbandry operations including the purchase of milch animals (cows buffaloes, goats,) and poultry, as well as small ruminants; the construction of sheds, fodder cultivation and purchase; veterinary treatment and equipment; as well as other value-added services like the chilling of milk, collection centers or small milk units.
Banks and states have their own versions. Missions central including those like the National Livestock Mission (NLM) as well as a range of state programs provide subsidy or project aid; commercial as well as public sector bank provide the loan finance. Recent summary of scheme and product pages of banks show the sizes of loans that differ according to the size of the project, however the majority of updated schemes and reviews in 2025-26 provide reference loans in the between Rs 50,000 and Rs 5,00,000. This is for small-scale projects that are individual with larger limits for projects that are enterprise-level.
Pashupalan Loan Yojana Update 2026 Overview
| What | Quick details |
| Loan quantum | Most commonly, Rs50,000 to Rs 5,00,000 for cattle projects of smallholders Larger enterprise loans are possible. |
| Eligible beneficiaries | Small and marginal farmers livestock rearers without land, SHG members, rural women and youth entrepreneurs. |
| The activities included | Milk animals such as poultry, goats/sheep fencing, fodder and animal equipment for veterinary use, including milk collection/chilling. |
| Interest & subsidies | Concessional rates in priority sectors Subsidy bands differ (state/central) and decrease the effectiveness of loans. |
| Application route | Local bank branch or cooperative bank or state nodal portal/SHG linkage; some options online through scheme portals. |
| Documents are required | Aadhaar ID, proof of residence Bank passbook, residence proof plan SHG certificate (if there is one) and quotations. |
| Official Website | https://www.india.gov.in/ |
Who is eligible to apply for Pashupalan Loan Yojana?
The eligibility criteria are generally the same across different schemes, but specific terms can differ depending on the state, bank or scheme:
- Indian citizen, living in the project zone (rural/agrarian usually semi-urban for some products of banks).
- Age range typically 18-65 (upper limit can be different).
- Small/marginal farmers, livestock rearers who are landless, SHG members, rural youth and women who are engaged or planning to get involved in livestock management are among the top beneficiaries.
- Applicants have to submit basic identity evidence (Aadhaar) as well as proof of residence along with bank account details as well as an easy plan of action to conduct the livestock operation. For loans that are larger banks may require documents for business plans as well as income proof or collateral (or take into consideration KCC or MUDRA and SHG connections).
What are the activities included in Pashupalan Loan Yojana?
The most common eligible activities for Pashupalan schemes are:
- Buy of milch animal (cows buffaloes, cows) Heifers, heifers, or crossbreds.
- Piggery and goat rearing (where permitted) and a few ruminant projects.
- Poultry unit (broilers as well as layers) backyard, commercial and.
- Dairy unit design centers for milk collection chilling units, processing of milk on a micro scale.
- Construction of sheds for animals along with feed storage facilities, as well as the purchase of vaccination equipment and feeding facilities.
- Purchase of medicines, fodder and working capital for managing the beginning of the production cycle.
- Training in veterinary skills and support for vets (some plans include technical support).
What can we expect to see in 2026
Loan amount: Several recent description of schemes and bank offerings show that loans just Rs50,000 to Rs 5,00,000 are usually offered to small-holder cattle projects. Enterprise or cluster projects could be granted higher limits (Rs 5-10 thousand or higher) subject to viability of the project and the bank’s policy. The Rs5 lakh amount is frequently mentioned in public relations materials of the state and in advisory writing-ups on small dairy projects.
Interest rates are based on the public sector as well as prior sector loans to animal husbandry usually have concessional rates, often in single digits or slightly over (depending on state and bank subsidy). In most cases the interest rates are based depending on whether the lending falls in a priority sector or subsidy scheme (which results in less effective rate) or commercial product (market rate). For example, certain banks dairy loan products provide simplified assessment based on cash flow, with low or no collateral as well as affordable rates.
Subsidy: Many state or central programmes offer capital subsidy (a proportion of the project’s cost) to specific tasks such as between 25-75% of the subsidy for particular breeds, fodder production, or for women/SC/ST recipients. Subsidy aid reduces the amount a farmer has to take out. The updated program pages and state write-ups from 2025-26 outline subsidy bands and incentives that are routed via Direct Benefit Transfer (DBT).
Step-by-step instructions on how to apply for Pashupalan Loan
Here is a simple and step-by-step procedure that applicants follow. If you’re applying for one of the state programs check the state’s portal or nodal agency first.
Step 1 -Learn the best route for you.
- Small personal loan for few animals: Visit the local branch of your bank or cooperative bank SHG linkage. A lot of banks offer dairy and cashupalan loan products. For example, Axis Bank’s Dairy Power loan (cash flow base and simplified).
- Subsidy-backed scheme: Go to the state department of livestock/animal husbandry portal or the national scheme’s website (eg. National Livestock Mission on Udyamimitra/NLM portals) to determine the eligibility requirements and application window.
Step 2 — Prepare simple project plan
- Type of animal(s) you’re planning to purchase; estimated cost breakdown (animals sheds, animals and feeders, medicines and fodder).
- Expected milk yield and cash-flow estimation (monthly incomes vs. EMI). Banks usually accept a one-page loan plan for small loans.
Step 3 — Collect documents
The most common documents are:
- Aadhaar, voter/PAN (ID), residence proof.
- Passbook of the bank and cancelled cheque.
- Plan of work and quotes (if there are any) for sheds/animals.
- Evidence of farm activity (if you already run a farm) SHG certificate, If appropriate. For larger loans, income or IT returns can be requested.
Step 4 — Submit application
- In person: Visit your nearest branch or the desk for agricultural finance or contact the rural credit officer or the dairy loan agent. There are many banks that have simplified forms for loans to dairy and pashupalan.
- Online: Certain state portals and national schemes permit online submission. The nodal agency will then forward the information to banks that are partners to approve and pay out.
Step 5 — Appraisal payment and sanction
- For loans that are small the banks usually conduct an appraisal based on cash flow and can approve loans with no collateral, up to a certain threshold. If loans are larger, a security or a third party guarantee might be required. The loan may be paid in installments (for purchase and shed construction) and is often directed to accounts of the vendor.
Step 6 — Post-sanction assistance
- Access veterinary extension services as well as fodder support and training, where schemes provide technical assistance (some NLM/state projects offer hands-on assistance and/or instruction).
Who is the source of these loans?
- Public sector banks & regional rural banks (RRBs): Major suppliers of priority sector and agriculture/pashupalan loans.
- Banks with scheduled commercial operations (SBI, PNB, Canara, Axis, etc.) They all have specific dairy/animal husbandry products. Examples include Axis Bank’s Dairy Power loan and Canara Bank dairy loans.
- Cooperative banks and NABARD-linked programmes particularly in rural areas and also for SHG/JLG financing.
- State nodal authorities and mission nationals (NLM) for project subsidies and support for cluster projects.
Before applying, you should create an outline of your project as well as gather basic documents. contact local extension officials to get estimates of yield and then speak directly with banks regarding their priority sectors and dairy loan options. If your idea is feasible and feasible, loans in the Rs50k to Rs5 lakh range are an effective and transformative method to create a sustainable rural income.
FAQ’s
1: Could a non-landless worker get a Pashupalan loan for up to 5 million?
Yes numerous state and bank programs explicitly list livestock rearers without land as well as SHG members as beneficiaries eligible for. For applicants who are not landless banks usually depend on appraisals based on cash flow and guarantees from JLG/SHG or SHG as well as subsidies from the state.
2: Does collateral need to be secured for loans of up to Rs 5 lakh?
Many banks have simplified offerings in which no collateral physical is required up to a specific threshold for priority sectors especially for JLG/SHG loans or dairy projects that are well-documented.
3. How long will it take for the subsidy or DBT to be credited to my bank account?
Subsidy timelines vary depending on the scheme and states. The majority of nodal agencies accept subsidy claims following project verification. DBT transfers generally require verification and could be delayed by weeks or months.