Tamil Nadu Milch Animal Loan Scheme

Scheme Introduction: A Brief Overview

The Tamil Nadu Milch Animal Loan Scheme is a low-interest loan scheme that helps people from Backward Classes (BC), Most Backward Classes (MBC) and Denotified Communities (DNC) buy milch animals and start their own dairy unit. The Tamil Nadu Backward Classes Economic Development Corporation Limited (TABCEDCO) runs the scheme in collaboration with the National Backward Classes Finance and Development Corporation (NBCFDC), a Government of India undertaking. On the TABCEDCO online portal, the scheme appears as the "Milch Animal Scheme (Aavin)" because it works closely with the state's milk producers' cooperative network.

The government introduced this scheme to turn dairy farming into a steady, self-sustaining livelihood for economically weaker backward class families. Its main objective is to give eligible rural households affordable credit so they can purchase cows or buffaloes, earn a regular income from milk sales, and become financially independent instead of depending on high-cost private lenders. Since the beneficiaries already belong to milk producer societies, the scheme also connects them with an assured market for their milk.

Under the Milch Animal Loan Scheme, an eligible beneficiary can get a loan of up to ₹1.20 lakh at an interest rate of just 7% per annum, with a repayment period of three years. The loan covers the purchase of a maximum of two milch animals. NBCFDC funds 85% of the project cost, TABCEDCO contributes 10%, and the beneficiary has to arrange only the remaining 5% as their own share.

Tamil Nadu Milch Animal Loan Scheme follows a cooperative-based selection model. The Tamil Nadu Milk Producers Union/Federation selects beneficiaries from among the members of its societies and recommends them to start a dairy unit. The applicant must belong to the BC, MBC, or DNC category, must be aged between 18 and 60 years, must have an annual family income of not more than ₹5 lakh, and should have basic knowledge of dairy farming. TABCEDCO allows only one loan per family and only one scheme at a time.

Under this scheme, applicants can apply online by completing the one-time registration process on the official TABCEDCO portal. Offline applications can also be submitted at the TABCEDCO Head Office in Chennai or through the designated local offices. The concerned authority has not yet released any official last date for applications; so the sanctions of loan remain subject to fund availability and the recommendations of the District Screening Committee.

Besides the Tamil Nadu Milch Animal Loan Scheme, the state Government has also been implementing the Tamil Nadu Milch Cow Free Distribution Scheme through the Animal Husbandry Department, under which free milch cows were distributed to poor rural families, especially women beneficiaries, to promote dairy farming, increase milk production, and improve the livelihood of cattle rearers in the State. You can check the complete details of the scheme here.

Scheme Benefits

The Milch Animal Loan Scheme provides affordable dairy financing to eligible backward-class families with a minimal beneficiary contribution. Under the scheme, beneficiaries are entitled to the following benefits.

• Loan Amount: Beneficiaries can get a loan of up to ₹1.20 lakh to buy milch animals.
• Low Interest: TABCEDCO charges only 7% interest per annum on the loan.
• Easy Repayment: The beneficiary gets three years to repay the loan.
• Dairy Unit: The loan supports the purchase of up to two cows or buffaloes.
• Minimal Own Share: The beneficiary needs to contribute only 5% of the project cost.
• Assured Market: Since beneficiaries come from milk producer societies, they get a ready channel to sell their milk.
• Livelihood Support: The scheme helps families earn a regular daily income from milk sales.

Pattern of Finance

The scheme follows a shared funding pattern in which the central corporation bears most of the cost.

DBT and Payment Details

The Milch Animal Loan Scheme is a loan scheme and not a subsidy or direct cash benefit scheme.

• The cooperative lending channel processes and disburses the loan.
• The beneficiary repays the loan with 7% interest within three years.
• The concerned authority has not yet released official information on a separate DBT payment schedule, e-KYC process, or the exact disbursement method. Applicants should confirm these details with the lending cooperative.

Eligibility Requirements

Applicants must meet the following conditions set by TABCEDCO and the Government of Tamil Nadu to get a loan under the Milch Animal Loan Scheme.

• The applicant must be an Indian citizen residing in Tamil Nadu.
• The applicant must belong to a Backward Class (BC), Most Backward Class (MBC), or Denotified Community (DNC).
• The applicant must be between 18 and 60 years of age.
• The annual family income must not exceed ₹5,00,000.
• The Tamil Nadu Milk Producers Union/Federation selects beneficiaries from among the members of its societies.
• The applicant should have basic knowledge of dairy farming.

Required Documents

To apply for the Tamil Nadu Milch Animal Loan Scheme, applicants must attach copies of the following documents to their loan application.

• Aadhaar Card
• PAN Card
• Community Certificate
• Income Certificate
• Nativity Certificate
• Smart Family Card
• Passport Size Photograph
• Scanned Copy of the Project Report
• Quotation from a leading company/supplier
• Hypothecation or Mortgage Documents, as required by the bank

Steps to Apply

Applicants can apply for the Tamil Nadu Milch Animal Loan Scheme through both online and offline modes. Applicants can follow the steps outlined below to understand the online application process.

Online Application Process

• Open the TABCEDCO Online Loan Application Portal.
• Click on the "Apply Online" link on the home page.
• New applicants should click on One Time Registration, read all the information carefully, and then click on “Continue One Time Registration” to proceed.
• In the registration form, enter your Aadhaar number, date of birth, and all other required basic details to create your account.
• Sign in using your registered email ID, mobile number, or beneficiary ID as the username, along with your password and the captcha code.
• Choose the "Milch Animal Scheme (Aavin)" from the list of loan schemes.
• Enter your personal, community, income, and dairy unit details carefully.
• Upload scanned copies of the required documents, including the project report and quotation.
• Review the details and submit the application.
• Log in again at any time to check the status of your submitted application.

Offline Application Process

Verification and Loan Sanction Process

After submission, the application passes through the cooperative channel and a district-level committee before the loan gets sanctioned.

• The Tamil Nadu Milk Producers Union/Federation selects eligible beneficiaries from its society members and recommends them.
• The District Cooperative Milk Producers Union Ltd. and Primary Milk Producers Cooperative Societies act as the sub-channelising agencies for this scheme.
• The cooperative lending agency verifies the application, checks the viability of the dairy unit and assesses the applicant's repayment capacity.
• The District Screening Committee, chaired by the Joint Registrar of Co-operative Societies with the District Backward Classes and Minorities Welfare Officer as convener, reviews the application and recommends the loan for sanction.
• The lending agency sanctions the loan, and the beneficiary purchases the milch animals.

Security for Loan Assistance

TABCEDCO follows the security norms of the respective lending institution for this loan.

• District Central Co-operative Banks
• Urban Co-operative Banks
• Primary Agricultural Co-operative Credit Societies
• Milk Producer Union

Relevant Links

• Tamil Nadu Milch Animal Loan Scheme Registration
• Tamil Nadu Milch Animal Loan Scheme Login
• Tamil Nadu Milch Animal Loan Scheme Details
• Tamil Nadu Milch Animal Loan Scheme Eligibility Details

Contact Information

• Tamil Nadu Backward Classes and Economic Development Corporation Limited Contact Details