TMB Commercial Dairy Farm Loan
A comprehensive finance solution that supports commercial dairy units with credit for cattle purchase, infrastructure development and large-scale operations
Finance for cattle, sheds and advanced dairy equipment
Supports large-scale dairy operations and expansion
Flexible repayment aligned to milk production and business cycles
Simple documentation and faster loan processing
Overview
The TMB Commercial Dairy Farm Loan is designed to support medium to large dairy farm enterprises with access to reliable finance for expansion, modernization and smooth operations
Product Highlights
The loan covers key commercial dairy needs such as the purchase of cows or buffaloes, construction of spacious sheds, installation of milking machines and procurement of storage or cooling equipment. Borrowers benefit from competitive interest rates, practical loan structures and inclusive eligibility norms
Features and Benefits
The TMB Commercial Dairy Farm Loan provides the financial foundation required to enhance dairy output, improve cattle management and adopt modern farming techniques. Borrowers can strengthen supply capacity, reduce labour dependency through mechanization and maintain consistent milk production throughout the year
Eligibility
The loan is available to dairy entrepreneurs, medium and large farmers, business entities, cooperatives and proprietary or partnership units engaged in commercial dairy farming
Eligibility & loan parameters
Comprehensive financing for large-scale dairy farming and milk processing enterprises
Eligibility, Limits & Loan Structure
| Parameter | Details |
|---|---|
| Eligible Borrowers | Individual Farmers, Farmer Groups, FPOs, Corporate Farmers, Partnership Firms engaged in Agriculture and/or Allied Activities |
| Type of Loan | Commercial Dairy Farm Loan |
| Minimum Loan Amount | ₹10.00 lakh |
| Maximum Loan Amount | Up to ₹25.00 crore |
| Interest Rate Structure | One-year MCLR + Business Strategy Spread (0.75%) + Risk Premium (0.20% to 3.50%), based on CRESS Model / credit rating |
| Margin Requirements | 15% for Small & Marginal Farmers; 25% for others |
| Primary Security | Hypothecation of assets created out of bank finance such as milch animals, equipment, buildings, etc. |
| Processing Fee | 0.25% of the loan amount |
| Documentation Charges | Nil (up to prescribed limits) |
| Repayment | Structured based on project cash flows and income from dairy operations |
| Interest Subvention | As applicable under Government / RBI / NABARD guidelines |
Loan Overview, Eligibility & Key Terms
| Financing Coverage | Details |
|---|---|
| Infrastructure Development | Construction of cattle sheds, store rooms, milk rooms and labour quarters |
| Livestock Purchase | Purchase of high-yielding milch animals |
| Equipment & Machinery | Milking machines and other dairy equipment |
| Processing Facilities | Establishment of chilling units, milk processing plants and milk products units |
| Transport | Purchase of trucks / vans including bulk milk cooler vans for milk transportation |
| Working Capital | Initial feed cost for one month, cultivation expenses for green fodder |
| Operating Expenses | Medicines, salaries, wages and other overhead expenses |
Loan Overview, Eligibility & Key Terms
| Criteria | Requirement |
|---|---|
| Applicant Type | Farmers, Farmer Groups, FPOs, Corporate / Partnership Entities |
| Farm Size Requirement | Minimum of more than 5 milch animals |
| Unit Definition | Unit size considered as 2 animals per unit |
| Activity Type | Commercial dairy farming and allied dairy activities |
Loan Overview, Eligibility & Key Terms
| Document Type | Details |
|---|---|
| Land Records | Ownership / lease documents with latest land tax receipt certified by Revenue Authorities |
| Purchase Invoices | Proforma invoices for milch animals and dairy equipment |
| Construction Approvals | Approved plan and cost estimate for sheds and buildings |
| Valuation Reports | Land valuation certificate from Bank-approved Panel Valuer (if land is offered as security) |
| Legal Documents | Documents required for legal opinion as per bank norms |
Frequently Asked Questions
Find answers to the most common questions about eligibility, benefits, and
features of the TMB Royal Savings Bank Account
