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Documents Required for a Poultry Farming Business Loan

Starting a poultry farm requires adequate capital investment which can be challenging to arrange without the help of a business loan. Lenders typically ask for a set of documents from applicants to evaluate loan eligibility and assess risk. Some key documents required include:

Business Profile and Plan
A comprehensive business plan is important to convince lenders about the viability and profitability of your proposed poultry farming venture. The plan should include details about infrastructure, location, types of poultry birds, projected costs and revenues, marketing strategy etc.

Financial Statements
Share the financial projections for the next 3-5 years in the form of a profit and loss statement and cash flow statement. This helps analyze the expected profitability and loan repayment capacity.

Collateral Details
Since agricultural loans are considered high risk, lenders ask for collateral security against the loan amount. Common assets provided include agricultural land, machinery, vehicles etc. You can check loan eligibility.

7 Steps to Start Your Own Poultry Business in India

  • Finalize Location and Land Requirement

    The location selected should have ample space for poultry sheds, storage, waste management and future expansion. A minimum of 1-2 acres is required initially depending on the scale. Opt for an area with moderate climate and access to water, power and roads.

  • Obtain Required Licenses and Permits

    Register your poultry farm as a small scale business with local authorities. Obtain licenses for operations, water usage and This makes the business legally compliant.

  • Arrange Farm Infrastructure and Equipment

    Build poultry sheds, feed storage, waste bins, drains etc. Procure other essential equipment like feeders, waterers, egg collection belts etc. Check loan eligibility to fund

  • Source Day Old Chicks and Feed

    Tie up with reliable hatcheries and feed suppliers locally. Place initial orders for chicks of desired breeds and quantities of starter, grower and layer feed.

  • Set Up Record Keeping System

    Track performance metrics like feed consumption, weight gain, mortality rates, production, expenses through a computerized system. This helps analyze farm efficiency over time.

  • Start With Trial Batch and Scale Gradually

    Run the farm on a small batch initially to test operations before expanding full-fledged. This reduces risks significantly at the start.

  • Market Eggs Through Established Channels

    Sell eggs daily to local vendors, shops, housing societies for steady income. You can also retail eggs from the farm directly.

Loan Amount, Interest Rates and Repayment Terms

Most poultry farm loans range between Rs. 10 lakh to Rs. 1 crore based on the scale of operations. The interest rate charged is slightly higher than general business loan since it's an agricultural venture. Interest is usually in the range of 12.5-14% per annum.

The maximum repayment period granted is 5-7 years depending on the lender. EMIs are calculated on the reducing balance method to help lower monthly payments. You can check sample loan EMIs 

Choosing the Right Lender for a Poultry Farming Loan

While banks like SBI, Punjab National Bank provide agricultural loans, it's best to approach lenders specialized in this space:

  • NABARD: Offers refinance support to RRBs and co-operative banks. Interest rate starts at 7%.

  • SIDBI: Has dedicated lending schemes for poultry and other animal husbandry related ventures.

  • Food Corporation of India: Finances projects larger than Rs. 50 lakh in scale. Rate of interest 10.25-11.25%.

  • You can compare loan terms offered by different lenders on their websites or by visiting their branches locally. Make sure to check loan processing times as well.


To sum up, having the right documents in place, a strong business case and choosing a specialized agri-lender will help get a business loan for starting a poultry farm sanctioned quickly. Make sure to repay EMIs on time to retain a good repayment track record and avail more financing in future if required. Let me know if you need any other document details.

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