How to get NABARD Subsidy for Dairy farming?
The following are the steps to be followed for getting the NABARD Subsidy for Dairy Farming:
- The first step you need to take is to decide which kind of business activity you are going to establish that belongs to or contributes to dairy farming.
- Then, register a company or any other suitable business or NGO entity.
- A detailed project report or a business plan summary has to be prepared for the dairy farm, including a letter requesting for a bank loan.
- You should submit the request for the bank loan to any commercial bank or regional, rural bank or state cooperative bank or state cooperative agriculture and rural development bank or other institutions, which are eligible for refinance from NABARD.
- Once the bank loan gets sanctioned, the promoter needs to implement the project using his contribution and the loan which he has hot from the bank. Authority for sanction of the loan, interest rate, tenure and collateral requirement is left to the Bank.
- On the disbursement of the first instalment of the loan, the Bank will apply to NABARD for approval and release of the NABARD subsidy for dairy farming.
- Then, NABARD releases the subsidy to the bank. The bank will hold the subsidy in an account classified as “Subsidy Reserve Fund Account” with no interest.
- On satisfactory servicing of the loan obligation by the promoter, the subsidy amount in the Subsidy Reserve Fund Account will be adjusted against the last few repayments of the bank loan.