Access to affordable and timely credit is essential for farmers engaged in animal husbandry. To support this need, the Kisan Credit Card (KCC) scheme has been extended to cover livestock and dairy farming. The State Bank of India (SBI), being one of the largest and most trusted banks in India, actively offers KCC Animal Husbandry loans to eligible farmers, dairy owners, and livestock rearers. This facility provides financial support for purchasing animals, fodder, medicines, and improving animal shelters, thereby helping to enhance income and strengthen rural livelihoods.
Overview of KCC for Animal Husbandry
The Kisan Credit Card (KCC) scheme was originally launched to meet the credit requirements of crop cultivators. Over time, the government expanded the scope of KCC to include allied activities such as animal husbandry and fisheries. The SBI KCC Animal Husbandry scheme specifically addresses the working capital and investment needs of farmers involved in raising cattle, goats, sheep, poultry, and other livestock.
Key Objectives
- Provide short-term credit for animal feed, veterinary care, and day-to-day livestock maintenance
- Offer term loans for the purchase of high-yielding animals and construction of animal sheds
- Reduce the dependence on informal credit sources with high-interest rates
- Enable financial inclusion of small and marginal farmers involved in animal-based livelihoods
Eligibility Criteria for KCC Animal Husbandry SBI
Applicants must meet specific requirements to qualify for the SBI KCC under animal husbandry:
- Individual farmers or Joint Liability Groups (JLGs) engaged in livestock rearing
- Minimum ownership of animals (e.g., at least 2 cows, buffaloes, goats, etc., depending on the loan size)
- Must be actively involved in animal husbandry activities for income generation
- Should have a satisfactory credit history or be a new borrower meeting eligibility norms
- Valid KYC documents such as Aadhaar, PAN, and land or shed ownership proof
Loan Features and Limits
The loan limits and features of SBI’s KCC Animal Husbandry scheme are designed to cater to small, marginal, and medium livestock farmers:
Working Capital Loans
- Credit limits up to ₹1.6 lakh for small animal rearing (e.g., goats, poultry)
- Up to ₹3 lakh for cattle and dairy farming units
- Loan repayment period: Typically 12 months, with renewable limits for up to 5 years
- Interest subvention available for prompt repayment (up to 3% under government schemes)
Term Loans for Capital Investment
- Used for purchase of milch animals, construction of sheds, fodder development, etc.
- Repayment period: 3-5 years, based on asset life and income generation
- Collateral: May be required for loans above ₹1.6 lakh
- Subsidy eligibility under NABARD or state-level livestock development programs
Documentation and Application Process
Farmers applying for a KCC Animal Husbandry loan from SBI must submit certain documents for verification and loan processing:
- Duly filled KCC loan application form (available at SBI branches or online)
- Proof of identity: Aadhaar card, PAN card, or Voter ID
- Address proof: Utility bill, ration card, or similar document
- Landholding or lease documents for fodder production, if applicable
- Livestock ownership proof or estimate of animal purchase
- Bank account details and recent photographs
Once documents are submitted, SBI verifies the eligibility and assesses the loan amount based on the scale of finance and operational capacity. In most cases, loans are sanctioned within a few working days, especially for existing account holders.
Interest Rates and Repayment Terms
The interest rate under the SBI KCC Animal Husbandry scheme is governed by RBI directives and often comes with interest subvention support:
- Base interest rate: Typically between 7% and 9% per annum (subject to revisions)
- Interest subvention: 2% by the central government; an additional 1% for timely repayment
- Effective interest rate for prompt payers: As low as 4% annually
The repayment frequency is usually aligned with the cash flow of the animal husbandry activity. Farmers can repay monthly, quarterly, or as per the sale of dairy or livestock products. Term loans may have a moratorium period before EMI repayment begins.
Benefits of SBI KCC Animal Husbandry Scheme
Farmers opting for this facility enjoy multiple benefits that support their income and livestock management goals:
- Quick and hassle-free access to credit for daily needs
- Affordable interest rates with government-backed support
- No need for frequent re-application credit limit is renewable annually
- Flexibility to use funds for feed, medicine, breeding, and maintenance
- Improved profitability and productivity in dairy and livestock sectors
Digital Access and KCC Smart Card
SBI provides a smart card or KCC debit card to eligible borrowers, which allows cash withdrawal and point-of-sale (POS) transactions. This modern approach improves transparency and makes it easier for farmers to access funds without visiting the branch frequently.
The KCC card can also be linked to mobile banking for balance inquiries, transaction alerts, and digital payments to feed suppliers or veterinary service providers.
Government Support and Interest Subvention
The Government of India, through the Department of Animal Husbandry and Dairying, provides interest subvention support to promote credit flow to livestock farmers. Key features include:
- Interest subsidy of 2% on loans up to ₹3 lakh
- Additional 1% incentive for timely repayment, reducing the effective rate
- Support extended through NABARD and state cooperative banks as well
This makes the SBI KCC loan more affordable and encourages responsible borrowing habits among animal husbandry practitioners.
Challenges in Implementation
While the KCC Animal Husbandry SBI scheme is highly beneficial, there are certain challenges that need attention:
- Lack of awareness among small and marginal livestock farmers
- Documentation issues, especially in informal rural setups
- Delayed processing due to incomplete applications
- Need for better coordination between banks and veterinary departments
Efforts are being made by the government and banking sector to conduct awareness camps, simplify forms, and offer doorstep services to make the scheme more inclusive.
A Vital Support System for Livestock Farmers
The KCC Animal Husbandry SBI scheme plays a crucial role in empowering livestock farmers by offering affordable and flexible credit. Whether it’s for purchasing animals, managing feed costs, or improving veterinary care, the scheme provides the financial backbone for successful animal husbandry ventures. With continued efforts in awareness, technology adoption, and timely support, this initiative can uplift millions of rural households, improve productivity in the livestock sector, and contribute to India’s goal of doubling farmer income. SBI’s participation ensures nationwide reach and dependable service, making it a valuable partner in rural development through livestock-based livelihoods.