Features and Benefits

The loan is provided to dairy societies for modernization and creating infrastructures like

  • Construction of "milk house or society office"

  • Purchase of "Automatic milk collection system"

  • Purchase of transport vehicles.

  • Purchase of Bulk chilling unit


A milk producer Co-operative society registered & affiliated to district Milk union and satisfies the following requirements

  • "A" grade in last audit.

  • Supplying an average of 1000 litres of milk to the milk union per day

  • Audited balance sheet for at least previous two years.

  • Earned pre-tax profits in the last two years

  • If borrowed from other banks- prior liquidation and no dues certificate is necessary.

Loan Amount

Upto 85% of the project cost or four times the average profit of previous two years with a maximum of Rs. 10.00 Lakhs

Maximum loan limit

Milk house or Society office

Rs. 2 Lakhs

Automatic milk collection system

Rs. 1 Lakhs

Milk transportation vehicle

Rs. 3 Lakhs

Chilling unit

Rs. 4 Lakhs

Collateral :

Mortgage of landed property or Guarantee of milk union



Rate of Interest:

Please click here

Repayment period:

60 months with start-up period of 6 months

Documents required

  • Duly filled in application form

  • Undertaking from Milk union to deduct and pay the instalment amounts.

How to apply

Contact your nearest SBI branch engaged in Agricultural advances for application and further details