India’s rural economy is deeply intertwined with animal husbandry (Pashupalan). Many families in rural areas depend not only on agriculture but also on livestock rearing for their livelihood. To support and expand this vital sector, the Government of India has introduced the Pashupalan Loan Yojana—a financial assistance scheme aimed at encouraging self-employment through animal husbandry.
This article explains everything about the Pashupalan Loan Yojana, including its benefits, eligibility, loan amount, interest rates, and the application process.
What is Pashupalan Loan Yojana?
The Pashupalan Loan Yojana is a national-level loan scheme launched by the Indian government to financially support individuals who wish to start or expand their livestock-based businesses. Under this scheme, eligible individuals can get financial aid in the form of a loan from nationalized banks to meet the expenses of animal rearing such as purchasing livestock, building shelters, arranging fodder, medicines, and other essential infrastructure.
The scheme is particularly helpful for people living in villages who want to start dairy farming, goat rearing, poultry, pig farming, or similar animal husbandry ventures but lack the initial capital.
Key Features of Pashupalan Loan Yojana
- Available across all states in India
- Offered by most nationalized and rural banks
- Maximum loan amount of up to ₹2 lakhs (can go up to ₹10 lakhs depending on the bank)
- Low-interest rates (generally around 7%)
- Convenient repayment through EMIs
- No need for large collateral for small loans
Eligibility Criteria for Pashupalan Loan Yojana
To apply for this loan, applicants must meet certain eligibility requirements:
- Age: The applicant must be 18 years or older.
- Income: The applicant should not have a high or permanent source of income; preference is given to low-income or self-employed individuals.
- Land Ownership: The applicant should have private land to carry out animal husbandry.
- Experience/Project Plan: A project report or plan related to the animal husbandry business is required. Prior experience in the field is an added advantage.
- Bank Account: The applicant must have a bank account in the same bank where the loan is being applied, with Aadhaar and mobile number linked.
Benefits of Pashupalan Loan Yojana
Here are the major advantages of the scheme:
- Financial Relief: Helps rural individuals kickstart or expand their livestock business without financial stress.
- Easy Access to Loans: Loans are easily available from nationalized banks under simple terms and conditions.
- Low Interest Rates: Loans are offered at lower interest rates (around 7%), making it affordable.
- Flexible Repayment Options: Loan repayments are structured in monthly installments (EMIs) for ease of repayment.
- Boost to Self-Employment: Encourages self-employment and improves income generation in rural areas.
Loan Amount and Interest Rate
- The loan amount under this scheme typically ranges from ₹50,000 to ₹2,00,000, depending on the scale of the business.
- Some banks may offer loans up to ₹10 lakhs for larger or more established animal husbandry projects.
- Interest rates generally range around 7%, but may vary slightly depending on the bank and applicant’s profile.
- Interest subsidies or relaxation may be available under schemes linked with NABARD or other agricultural subsidies.
How to Apply for Pashupalan Loan Yojana?
The application process is simple and mostly offline. Here’s a step-by-step guide:
Go to the official website related to the animal husbandry department or your bank’s website to get details about the scheme.
Download the Pashupalan Loan Yojana application form or collect it from your nearest bank branch.
Complete the form with all necessary personal and business-related details.
Attach the photocopies of the following documents:
- Aadhaar Card
- Income Certificate
- Land Ownership Proof
- Passport Size Photos
- Bank Account Details
- Project Report for Animal Husbandry
Submit the completed application form and documents to the nearest branch of the bank where you hold an account.
Important Tips Before Applying
- Prepare a realistic business plan or project report for better chances of loan approval.
- Get quotes for livestock, shed construction, and equipment to include in your project cost.
- Maintain a good relationship with your bank manager and ensure all KYC documents are updated.
- If available, look for government subsidies or support from NABARD or Animal Husbandry Department to reduce the financial burden.