iob_bank_dairy

Last Updated:07/02/2026
DAIRY

DAIRY - (Purchase of Milch Animals)

   

Objective

Credit facility for establishing dairy farm

Nature and
purpose of
advance

Purchase of milch animals (cows or she-buffaloes)

Construction of shed for accommodating the milch cattle, milking shed, feed room, provision of water facilities, etc., as an integral part of a dairy farm to be set up or under expansion.

Purchase of dairy equipment's, milk testing equipment's, etc.

Establishment of fodder farms.

Rearing crossbred female calf from 4 months to 28 months of age under Heifer Calf Rearing Scheme.

Financing of dairy Co-operative societies for construction of milk houses (a house containing society's office, feed store, milk collection booth and farmers' meeting hall) can also be considered.

Quantum of loan

Minimum: No Minimum

Maximum: No Maximum

Eligibility

Applicant should have aptitude and experience in dairy farming/ rearing of milch cattle.

Sufficient space to accommodate the milch animals and adequate water facility with regular supplies of fodder.

Security

Up to Rs. 2.00 Lakhs:  Hypothecation of assets created out of loan. Nil Collateral

Above Rs. 2.00 Lakhs: Loan should be adequately secured by way of immovable property whose value is not less than/ equal to the loan amount.

Margin

Up to Rs. 2.00 Lakhs:Nil

Above Rs 2.00 Lakhs: 15% to 25%

Repayment

The Loan is to be repaid in 60 EMI without holiday period in case of Purchase of Milch Cattle.

Maximum 72 EMI, if advances are provided for construction of sheds, purchase of animals and equipment, including Holiday Period of 6 to 12 months.

Rate of Interest

Without tie up / undertaking:

 

Internal rating

Benchmark

Strategic Premium

Risk Premium

Total Spread

Effective ROI*

Rating-IOB 1

1 Y MCLR

0.20%

1.10%

1.30%

10.15%

Rating-IOB 2

1 Y MCLR

0.20%

1.20%

1.40%

10.25%

Rating-IOB 3

1 Y MCLR

0.20%

1.40%

1.60%

10.45%

Rating-IOB 4

1 Y MCLR

0.20%

1.60%

1.80%

10.65%

Rating-IOB 5

1 Y MCLR

0.20%

2.00%

2.20%

11.05%

Rating-IOB 6 and above

1 Y MCLR

0.20%

2.25%

2.45%

11.30%

*1Y MCLR - 8.85% at present

Externally rated accounts:

Externally rated accounts

Benchmark

Strategic Premium

Risk Premium

Total Spread

Effective ROI*

AAA

1 Y MCLR

0.20%

0.70%

0.90%

9.70%

AA

1 Y MCLR

0.20%

0.80%

1.00%

9.85%

A

1 Y MCLR

0.20%

1.10%

1.30%

10.15%

BBB

1 Y MCLR

0.20%

1.25%

1.45%

10.30%

 

With tie up/undertaking:

Up to Rs.5 Lakhs - 1Y MCLR (8.85% at present) + 0.45% (spread) = 9.30% at present.

above Rs.5 Lakhs - 1Y MCLR (8.85% at present) + 1.40% (spread) = 10.25% at present.

Processing charges

Up to Rs. 50,000/- - Nil

Above Rs. 50,000/- up to Rs. 3 Lakhs - 0.30% of the loan amount

Above Rs. 3 Lakhs - 0.71% of the loan amount

*Conditions apply

*For more details, please contact our nearest branch

*Click here to apply Indian Overseas Bank (iob.in)