Tamil Nadu Milch Animal Loan Scheme

Introduction of Tamil Nadu Milch Animal Loan Scheme: A Brief Insight

A cow or a buffalo can provide a rural family with a regular supply of milk and a source of daily income. However, purchasing good-quality milch animals requires a considerable investment, which many families cannot afford at once. Private loans may also carry high interest rates. The Milch Animal Loan Scheme addresses this financial difficulty by offering eligible families a low-interest loan to start dairy farming and repay the amount over time.

The Tamil Nadu Backward Classes Economic Development Corporation (TABCEDCO), a corporation of the State Government, offers this scheme in association with the National Backward Classes Finance and Development Corporation (NBCFDC). The Tamil Nadu Milk Producers Union or Federation (Aavin) identifies beneficiaries from among its members.

The Backward Classes, Most Backward Classes and Minorities Welfare Department of Tamil Nadu runs the scheme through TABCEDCO. At the district level, the District Backward Classes and Minorities Welfare Officers, Joint Registrars of Co-operative Societies and co-operative banks support its implementation.

The scheme aims to help people belonging to the Backward Classes (BC), Most Backward Classes (MBC) and Denotified Communities (DNC) purchase milch animals and establish dairy farming as a regular source of livelihood. It also connects new dairy farmers with the State’s milk co-operative network.

Under the scheme, an eligible beneficiary can receive a loan of up to ₹1,20,000 to purchase a maximum of two milch animals, either cows or buffaloes. The annual interest rate is 7%, and the repayment period is 3 years. NBCFDC contributes 85% of the loan amount, TABCEDCO contributes 10%, and the beneficiary contributes the remaining 5%.

Applicants must belong to the BC, MBC or DNC communities, be between 18 and 60 years of age and have an annual family income of up to ₹5,00,000. They must also hold membership in a Milk Producer Co-operative Society. The scheme allows only one beneficiary per family, and an applicant can receive benefits under only one TABCEDCO scheme at a time.

Applicants can submit their applications online through the TABCEDCO portal after completing one-time registration. They can also use a printed application form, available free of cost from the TABCEDCO Head Office, District Backward Classes and Minorities Welfare Officer, Joint Registrar of Co-operative Societies, Milk Producer Co-operative Society or Milk Producers Union. After submission, the District Screening Committee examines and recommends eligible applications for loan sanction.

For assistance, applicants can contact the TABCEDCO Head Office at Egmore, Chennai, by calling 044-28190122 or emailing tabcedco@tn.gov.in. They can also approach their Milk Producer Co-operative Society or the office of the District Backward Classes and Minorities Welfare Officer for guidance.

Rural women who want to receive a cow without taking a loan can explore the Free Milch Cow Distribution Scheme. Women interested in goat rearing can also check the Vetri Magalir Goat Rearing Scheme. Dairy farmers who want to insure their cattle can explore the Centre’s Rashtriya Pashudhan Bima Yojana, while those who need financial support for animal feed and care can check the Kisan Credit Card Scheme.

Dairy farmers, rural families and other interested applicants looking for livelihood, loan and welfare programmes can explore more initiatives on our Tamil Nadu Government Welfare Schemes List page.

Latest Updates on Tamil Nadu Milch Animal Loan Scheme

• Dedicated Scheme Page: TABCEDCO has a separate page for the Milch Animal Loan Scheme on its official website. It provides details about the maximum loan amount, interest rate, repayment period and financing pattern.
• Online Application Facility: The TABCEDCO Online Loan Application Portal includes the Milch Animal Scheme as an application option. Applicants can complete one-time registration, submit their applications and track their status through the portal.
• Online and Offline Applications: Eligible applicants can apply through either mode. TABCEDCO also provides printed application forms free of cost through its authorised offices.
• Loan Mela Held on 7 September 2026: TABCEDCO announced a Loan Mela for applicants at the Coimbatore District Collectorate on 7 September 2026. District Backward Classes and Minorities Welfare Officers also organise such loan melas in different districts.
• Loan Amount and Interest Rate: According to the scheme details available on the TABCEDCO website, eligible beneficiaries can receive a loan of up to ₹1,20,000 at an annual interest rate of 7%, with a repayment period of 3 years.
• Keep Your Documents Ready: Applicants should arrange their Community Certificate, Income Certificate, Aadhaar Card and Milk Producer Co-operative Society membership proof before applying. They should also contact their respective Milk Producers Union regarding the beneficiary recommendation process.

Benefits Provided to Eligible Beneficiaries

Purchasing good-quality cows or buffaloes requires a significant investment, which many small dairy farmers may find difficult to arrange at once. The Tamil Nadu Government’s Milch Animal Loan Scheme, implemented through TABCEDCO and Aavin, provides financial assistance at a concessional interest rate. Eligible beneficiaries can purchase milch animals and repay the loan over time using income generated from milk sales.

• Financial assistance of up to ₹1,20,000 for each eligible beneficiary.
• Loan coverage for purchasing up to two milch animals, including cows or buffaloes.
• Concessional annual interest rate of 7% on the loan amount.
• Repayment period of 3 years, allowing beneficiaries to repay through income earned from their dairy activities.
• Beneficiary-friendly financing structure in which NBCFDC contributes 85%, TABCEDCO contributes 10% and the beneficiary contributes only 5%.
• For a loan of ₹1,20,000, the beneficiary’s contribution comes to approximately ₹6,000.
• Selection of beneficiaries from Milk Producer Co-operative Society members through the Tamil Nadu Milk Producers Union or Federation (Aavin), keeping them connected with the organised dairy network.
• Opportunity to establish a new small dairy unit or expand an existing dairy activity as a source of regular income.
• Facility to submit an online application through the TABCEDCO portal, complete one-time registration and check the application status.
• Availability of free application forms at the TABCEDCO Head Office, District Backward Classes and Minorities Welfare Officer’s offices, Joint Registrar of Co-operative Societies’ offices, Milk Producer Co-operative Societies and Milk Producer Union offices.
• District-level application scrutiny through a District Screening Committee, which examines applications and recommends eligible beneficiaries for loan sanction.
• Loan security arrangements according to the applicable rules of the District Central Co-operative Bank, Urban Co-operative Bank, Primary Agricultural Co-operative Credit Society or Milk Producer Union.
• A separate Aavin-based TAMCO loan facility for members of minority communities, carrying an annual interest rate of 6%. The stated loan amounts are ₹50,000 for two crossbred cows and ₹70,000 for two Murrah or graded buffaloes.

Eligibility Conditions Required to be Fulfilled

The Milch Animal Loan Scheme, implemented through TABCEDCO and Aavin, supports eligible dairy farmers who belong to the Backward Classes and need financial assistance to purchase cows or buffaloes. Before approving the loan, TABCEDCO checks the applicant’s community, family income, age and membership in a Milk Producer Co-operative Society. Make sure you meet the following conditions before applying.

Who Is Eligible

• An Indian citizen residing in Tamil Nadu
• A member of the Backward Classes (BC), Most Backward Classes (MBC) or Denotified Communities (DNC)
• A person whose annual family income does not exceed ₹5,00,000
• An applicant aged between 18 and 60 years
• A member of a Milk Producer Co-operative Society, as Aavin (Tamil Nadu Milk Producers Union or Federation) identifies and recommends beneficiaries from its member base
• A person with basic knowledge of dairy farming

Conditions of the Loan

• The loan can be used only to purchase milch animals (cows or buffaloes), with a maximum limit of two animals.
• The maximum loan amount is ₹1,20,000, carrying an annual interest rate of 7% and a repayment period of 3 years.
• The beneficiary must contribute 5% of the project cost. NBCFDC contributes 85%, while TABCEDCO provides the remaining 10%.
• Only one loan per family is permitted under the scheme.
• A beneficiary can avail the benefits of only one TABCEDCO scheme at a time.
• The District Screening Committee must recommend the application before the loan receives final approval.
• The financing bank or Milk Producer Society may require security or collateral according to its applicable rules.

Who Is Not Eligible

• Applicants whose annual family income exceeds ₹5,00,000
• Individuals below 18 years or above 60 years of age
• Applicants who do not belong to the BC, MBC or DNC communities
• Another family member, if someone in the same family has already received this loan
• Applicants who have already availed a loan under another TABCEDCO scheme
• Individuals who are not members of a Milk Producer Co-operative Society and cannot obtain the required recommendation from the Milk Union

Minority Communities

• Members of minority communities can apply for the separate Aavin-based Milch Animal Loan Scheme of TAMCO, which carries an annual interest rate of 6%.

Documents Required to be Attached

The Tamil Nadu Government’s Milch Animal Loan Scheme, also known as the Milch Animal Loan Scheme of TABCEDCO and Aavin, requires applicants to submit certain documents along with their loan application. Keep clear copies of the following documents ready, whether you apply online or submit the application offline.

Identity and Residence Documents

• Aadhaar Card
• PAN Card
• Nativity Certificate
• Smart Family Card (Ration Card)
• Recent passport-size photograph of the applicant

Community and Income Documents

• Community Certificate confirming that the applicant belongs to the Backward Classes, Most Backward Classes or Denotified Communities
• Income Certificate showing the family’s annual income

Documents for the Dairy Unit

• Scanned copy of the dairy unit project report, including its proposed plan and estimated cost
• Quotation from a recognised company or seller for purchasing milch animals
• Details of the cowshed or proposed location for keeping the animals

Documents for the Bank

• Hypothecation or mortgage documents, as required by the financing bank
• Applicant’s bank account details
• Any additional documents requested by the Co-operative Bank or Milk Producer Union

Documents of the Milk Society

• Membership proof issued by the Milk Producer Co-operative Society
• Recommendation letter from the concerned Milk Producer Union
• Milk society passbook showing the quantity or details of milk supplied

Application Papers

• Completed and signed TABCEDCO loan application form
• Acknowledgement receipt or slip issued by the office receiving the application

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

You can apply for the Government of Tamil Nadu’s Milch Animal Loan Scheme (TABCEDCO and Aavin) through two methods. You can submit your application online through the TABCEDCO portal or fill out a printed application form and submit it to the concerned office. Both methods allow eligible dairy farmers to apply for the loan. Choose whichever method is convenient for you and follow the steps given below.

Before You Start

Step 1: First, check your community certificate. You must belong to the Backward Classes, Most Backward Classes or Denotified Communities to apply under this scheme.

Step 2: Check your family’s annual income. It must not exceed ₹5,00,000.

Step 3: Make sure that you are between 18 and 60 years of age.

Step 4: Check whether you are a member of a Milk Producer Co-operative Society. Also, ask your society about the recommendation process followed by the Milk Producer Union.

Step 5: Read the official details of the Milch Animal Loan Scheme on the TABCEDCO website before applying.

Step 6: Visit the TABCEDCO eligibility and application guidelines page to understand the conditions and required documents.

Step 7: Collect clear copies of your Aadhaar Card, PAN Card, Community Certificate, Income Certificate, Nativity Certificate, Smart Family Card and recent photograph. Also, keep your dairy project report and animal purchase quotation ready.

Step 8: Keep your bank-related documents ready, including hypothecation or mortgage papers if the financing bank requires them.

Apply through Online Application Form

Step 1: Open the official TABCEDCO online loan application portal.

Step 2: If you are using the portal for the first time, click on One Time Registration to create your account.

Step 3: Enter the required details in the registration form and complete the one-time registration process.

Step 4: After registration, log in using your registered email ID, mobile number or Beneficiary ID, along with your password.

Step 5: Enter the captcha code displayed on the screen and click the login button.

Step 6: From the available options, select Milch Animal Scheme. Make sure you do not select the Individual Loan Scheme or Group Loan Scheme by mistake.

Step 7: If you want to understand the scheme details before proceeding, click on the Scheme Information option.

Step 8: Open the Milch Animal Scheme application section and proceed to the loan application form.

Step 9: Fill in your personal information, community details, annual family income and details of the proposed dairy unit.

Step 10: Upload clear scanned copies of all the required documents in the specified format.

Step 11: Check your name, address, income and other details carefully. If everything is correct, submit the application.

Step 12: Save your application or beneficiary details. You can use your login credentials to visit the portal again and check the status of your loan application.

Step 13: If you forget your password, use the Forgot Password option available on the login page to recover your account.

Apply through Offline Application Form

Step 1: Download the official TABCEDCO loan application form and take a printout.

Step 2: You can also collect the printed application form free of cost from the TABCEDCO Head Office at Egmore, Chennai.

Step 3: Another option is to collect the form from your District Backward Classes and Minorities Welfare Officer’s office or the Regional Manager’s office. Find the relevant office through the list of District Backward Classes and Minorities Welfare Officer offices.

Step 4: You can also ask for the application form at the office of the Joint Registrar of Co-operative Societies. Check the list of Joint Registrar offices to find the relevant office.

Step 5: Alternatively, collect the form from your Milk Producer Co-operative Society or the concerned Milk Producer Union.

Step 6: Fill in the form carefully with your name, residential address, community, annual income, age and details of the dairy unit you plan to establish.

Step 7: Mention the loan amount you need and provide details of your 5% contribution towards the project cost.

Step 8: Sign the application form wherever required.

Step 9: Attach clear copies of all the required documents, including your dairy project report and animal purchase quotation.

Step 10: Submit the completed form to the District Backward Classes and Minorities Welfare Officer, Joint Registrar of Co-operative Societies, Milk Producer Co-operative Society or Milk Producer Union, as applicable.

Step 11: Collect an acknowledgement receipt from the receiving office. Keep it safely because you may need it to follow up on your application.

After You Apply

Step 1: After submission, the concerned Milk Producer Union checks your application and verifies your membership in the Milk Producer Co-operative Society.

Step 2: The Milk Producer Union recommends eligible applicants from among its members for the loan.

Step 3: Your application then moves to the District Screening Committee for examination and recommendation. You can read about this process on the official TABCEDCO loan sanction guidelines page.

Step 4: The Joint Registrar of Co-operative Societies serves as the Chairman of the District Screening Committee, while the District Backward Classes and Minorities Welfare Officer acts as its Convener.

Step 5: The committee also includes the General Manager of the District Industries Centre, the Special Officer of the District Central Co-operative Bank and the Project Officer of the Tamil Nadu Corporation for Development of Women.

Step 6: The committee examines the application and recommends eligible cases for loan sanction.

Step 7: Once the loan moves towards sanction, complete the security or collateral formalities required by the financing bank or Milk Producer Society.

Step 8: Arrange your 5% contribution and purchase the approved milch animals according to the loan conditions.

Step 9: Repay the loan within the prescribed 3-year period. Keep the receipts or payment records safely for future reference.

If You Need Help

Step 1: If you face any difficulty while registering or submitting your application, contact the TABCEDCO Head Office at 044-28190122 or 044-28190145.

Step 2: You can also send your query to tabcedco@tn.gov.in or tabcedco@gmail.com.

Step 3: For the office address and other contact details, visit the official TABCEDCO contact page.

Important: Submit your application only through the official TABCEDCO portal or the authorised offices mentioned above. Do not pay any agent or middleman for registration or loan approval. Members of Minority communities are covered under the separate Aavin-based TAMCO loan facility. They can contact the District Backward Classes and Minorities Welfare Officer for information about that scheme.

Milch Animal Loan, Free Milch Cow and Goat Scheme: What Is the Difference?

Tamil Nadu offers several schemes to support dairy farming and livestock rearing, but each provides a different type of assistance. Some schemes offer financial support through loans, while others provide animals directly to eligible beneficiaries. The table below highlights the key differences to help you identify the scheme that suits your needs.

If you want to purchase milch animals of your choice and can repay a loan, the Milch Animal Loan Scheme may be suitable. However, if you meet the eligibility conditions for either of the other two schemes, you can explore the option of receiving animals without taking a loan.

Important Links Available of the Scheme

• Tamil Nadu Milch Animal Loan Scheme, Official Scheme Details by TABCEDCO
• TABCEDCO Online Loan Application Portal
• Download TABCEDCO Milch Animal Loan Application Form (PDF)
• Milch Animal Loan Eligibility, Application Process and Required Documents
• TABCEDCO Loan Sanction Process and District Screening Committee Details
• NBCFDC Loan Schemes for Backward Classes Through TABCEDCO
• District Backward Classes and Minorities Welfare Officer Offices
• Joint Registrar of Co-operative Societies Office Details
• TABCEDCO Official Website, Government of Tamil Nadu
• Tamil Nadu Government Milch Animal Loan Scheme Details for BC, MBC and Minority Communities
• TAMCO Loan Schemes for Minority Communities, Including Aavin-Based Milch Animal Loans

Contact Details in Case of Help Needed

• Head Office: The Managing Director, Tamil Nadu Backward Classes Economic Development Corporation Limited (TABCEDCO), 1/1 (1), Mayor Ramanathan Salai (East), Near Gengu Reddy Subway, Egmore, Chennai – 600008
• Phone: 044-28190122, 044-28190145
• Email: tabcedco@tn.gov.in, tabcedco@gmail.com
• District Level: The District Backward Classes and Minorities Welfare Officer or the Regional Manager of TABCEDCO in the Collectorate of your district
• Co-operative Level: The office of the Joint Registrar of Co-operative Societies of your region, which is the chairman of the District Screening Committee
• Milk Society Level: Your Milk Producer Co-operative Society or the Milk Producer Union, which recommends your application

Frequently Asked Questions (FAQs)

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.