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How to Start a Poultry Farm Business and Secure Financing for It

Learn how to start a poultry farm business in India, get the right licences, and explore financing options to support your business.

Starting a poultry farm in India can be a practical business idea if you plan it the right way. It offers income opportunities in both urban and rural areas. However, like any business, you need a poultry farm business plan with clear steps, from choosing the right farm type to getting licences and funding.

Step-by-Step Guide to Starting a Poultry Farming Business in India

Starting a poultry farm requires basic planning and a clear understanding of what you want to achieve. Here’s how you can begin:

1. Decide the Type of Poultry Farming

Choose whether you want to rear broilers (for meat), layers (for eggs), or both. You could also explore options like hatcheries or breeding farms.

2. Choose a Suitable Location

Pick a place that is away from residential areas but has access to clean water, electricity, and transport. Make sure the land is affordable and not prone to flooding.

3. Build the Poultry Shed

Design the shed with proper ventilation, lighting, and space for the birds. The structure should protect them from heat, rain, and predators.

4. Arrange Equipment and Supplies

Get feeding trays, waterers, brooders, heaters, and storage units. Ensure you have proper drainage and waste disposal systems in place.

5. Select Healthy Chicks

Buy chicks from a trusted hatchery or supplier. Ensure they are vaccinated and disease-free to avoid early losses.

6. Feed and Health Management

Provide a balanced diet at every stage. Set up a regular vaccination schedule. Monitor the birds for signs of illness or poor growth.

7. Hire Skilled Staff

Hire caretakers who understand poultry management. If the farm is large, you may also need a veterinary consultant.

8. Maintain Records

Track expenses, feed usage, egg or meat production, and mortality rates. This helps in planning and cost management.

9. Market Your Produce

Sell your produce directly to local markets, retailers, or online. You may also tie up with wholesalers or cold storage providers.

Registration and Licensing for a Poultry Farm Business

To run your poultry farm legally, you need to follow some basic registration and licensing steps as a part of the poultry farming business plan. 

These may vary by state, but here’s a general guide:

Register Your Business

You can register your farm as a sole proprietorship, partnership, or private limited company. Choose a structure that suits your scale and goals.

Get Local Permissions

Approach your local Gram Panchayat or Municipality. They may require details of your farm location, size, and waste management practices.

Pollution Control Consent

For larger farms, apply for a ‘Consent to Establish’ and ‘Consent to Operate’ from your State Pollution Control Board.

Animal Husbandry Registration

In some states, poultry farms must register with the Animal Husbandry Department for livestock health monitoring and disease control.

Food Safety and FSSAI Licence

If you process or package meat or eggs for sale, apply for a licence from the Food Safety and Standards Authority of India (FSSAI).

Shops and Establishment Act

If you hire staff, you may need to register under the Shops and Establishment Act applicable in your state.

GST Registration

If your turnover crosses the threshold limit, apply for Goods and Services Tax (GST) registration to manage your tax filings.

Cost of Starting a Poultry Farm

Starting a poultry farm in India requires careful investment planning, considering factors such as farm size, poultry breed (layer or broiler), location, and infrastructure needs. 

Here is a cost breakdown for setting up a poultry farm:

City Tier Estimated Investment Range Key Considerations

Tier-1 Cities (e.g., Mumbai, Delhi, Bangalore)

₹15–40 Lakhs

Higher land and infrastructure costs, modern equipment for temperature control, and waste management.

Tier-2 Cities (e.g., Pune, Jaipur, Lucknow)

₹8–20 Lakhs

Lower costs for land and setup; ideal for medium-scale poultry farms.

Tier-3 Cities (e.g., Bhopal, Varanasi, Coimbatore)

₹5–12 Lakhs

Lowest overheads; suitable for small to medium poultry farms with manageable herd size.

Disclaimer: These estimates are based on industry averages and can vary based on the location, farm size, breed, and specific operational requirements. It’s advisable to conduct a detailed market study and consult with poultry farming experts for accurate cost analysis.

Cost Breakdown by Category

  • Land and Location

Land costs depend on the city and proximity to markets. In Tier-1 cities, land may cost ₹2–5 Lakhs per acre, while in Tier-2 and Tier-3 cities, it may range from ₹50,000–₹2 Lakhs per acre.

  • Poultry Infrastructure (Coops, Sheds, etc.)

Setting up sheds, ventilation systems, and cages may cost ₹5–10 Lakhs for a medium-sized farm.

  • Poultry Stock (Chicks or Hens)

The cost of purchasing chicks (broilers or layers) can range from ₹15–₹30 per chick, depending on the breed. A medium-scale farm with 1,000 chicks can cost ₹15,000–₹30,000.

  • Feed and Supplements

Initial stock of feed and nutritional supplements for the first batch can cost ₹50,000–₹1 Lakh. Monthly feed costs will be a recurring expense, ranging from ₹40,000–₹80,000, depending on the size of the farm.

  • Equipment and Machinery

Equipment for egg collection, water systems, and temperature control can cost ₹3–5 Lakhs for small to medium farms.

  • Labour and Staff

Hiring farmhands, veterinary experts, and workers for daily maintenance may cost ₹25,000–₹60,000 per month depending on the scale of operations.

Benefits of a Business Loan

Access to Capital When You Need It

You may not always have enough personal savings to start or grow your farm. 

A business loan gives you immediate funds to invest in land, sheds, equipment, or working capital. You can start operations without delay.

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Flexible Repayment Options

Lenders usually offer a choice of tenures, ranging from a few months to several years. You can pick a repayment schedule that matches your income cycle and makes repayment more manageable.

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No Need to Use Personal Funds

Using all your savings may leave you unprepared for unexpected costs. A loan allows you to keep your personal funds for emergencies or household needs, while still funding your business.

Minimal Paperwork for Smaller Loans

Some lenders, especially NBFCs and small finance banks, offer loans with simple documentation. If your loan amount is moderate, you may not need to provide heavy financial records.

Helps You Build a Credit History

If you repay the loan on time, it boosts your credit score. This can help you get better financing options in the future, whether for expansion or other business needs.

Allows for Gradual Expansion

With the help of a loan, you can add more birds, upgrade your infrastructure, or introduce new products like organic eggs or meat. You don’t need to wait for profits to reinvest.

Competitive Interest Rates

Depending on your profile, you may get loans at reasonable rates. Compare different lenders to find the one that suits your business needs and repayment ability.

Support for Daily Operations

A loan can also help you manage daily expenses like feed, wages, medicine, and utilities. This ensures that your operations run smoothly, even during slow sales periods.

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Business Loan Offers and Interest Rates by Various Lenders on Bajaj Markets

Here’s a quick comparison to help you find the right lender on Bajaj Markets based on interest rates and flexible repayment options:

Available Offerings Minimum Interest Rate Maximum Tenure

Aditya Birla Capital UDYOG PLUS Business Loan

22% p.a.

36 months

20% p.a.

36 months

AYE Finance Business Loan

29.50% p.a.

30 months

Bajaj Finance Business Loan

14% p.a.

96 months

FlexiLoans Business Loan

18% p.a.

42 months

IIFL Finance Business Loan

16.50% p.a.

48 months

InCred Business Loan

24% p.a.

60 months

Indifi Business Loan

22% p.a.

36 months

KreditBee Business Loan

18% p.a.

36 months

Lendingkart Business Loan

19.20% p.a.

36 months

Protium Business Loan

20.5% p.a.

36 months

Credit Saison Business Loan

22% p.a.

36 months

UGRO Capital Business Loan

24% p.a.

72 months

L&T Finance Business Loan

15.50% p.a.

60 months

Godrej Capital Business Loan

16% p.a.

72 months

Disclaimer: The mentioned rates are subject to change at the lender’s discretion.

Eligibility Criteria and Documents Required for a Business Loan

Before applying for a business loan, you must meet certain basic conditions set by lenders. These help assess your ability to repay the loan and the stability of your business. Here’s what you typically need to qualify:

  • You must be a citizen of India

  • A good CIBIL score is required

  • You should be self-employed, either as a professional (e.g. doctor or chartered accountant) or a non-professional (e.g. trader or manufacturer)

  • Your age must be between 21 and 60 years

  • Your business must be registered as a partnership, limited liability partnership, or private limited company

  • Your business should have been operating for at least 1 year

  • Your business must have a minimum annual turnover of ₹1.5 Lakhs, as reported in your ITR

Once you confirm your eligibility, you should also prepare the necessary documents. These are required during the application process:

  • Identity Proof

PAN card, Aadhaar card, passport, driving licence, or Voter ID

  • Address Proof

Aadhaar card, passport, utility bills, or a registered lease agreement

  • Income Proof

Latest 6-month bank statements, ITR filings, and certified financial documents. These may include a profit and loss statement, income computation, and balance sheet for the last 2 years

  • Business Proof

Depending on your business structure, you may need to submit a Sole Proprietorship Declaration, a verified copy of your Partnership Deed, or a certified Memorandum and Articles of Association

Role of Credit Score and CCR in Securing a Poultry Farm Loan

For poultry farm businesses, securing a loan requires strong financial credentials, whether you’re applying as an individual farmer or as a registered company. Lenders assess both personal credit scores and Company Credit Reports (CCR) to evaluate your loan eligibility and determine the terms.

  • Personal Credit Score (for Sole Proprietors)

If you apply as an individual farmer, your CIBIL score will be reviewed. A score of 750 or above is generally preferred by lenders, as it indicates a reliable repayment history. A strong personal credit score helps secure loans for purchasing chicks, feed, equipment, or building farm infrastructure.

  • Company Credit Report (for Registered Poultry Farms)

If your poultry farm is a registered entity (LLP, Pvt Ltd, or partnership), lenders will evaluate your Company Credit Report (CCR). A CCR rank of 1–3 demonstrates strong financial stability and repayment capacity, increasing your chances of obtaining larger loans for farm expansion, increased poultry stock, or upgraded infrastructure.

A strong credit profile ensures quicker access to funds needed for expanding poultry stock, installing automated systems, and buying feed and equipment. It also helps secure better interest rates and flexible repayment plans.

How to Apply for a Business Loan on Bajaj Markets

Applying for a business loan on Bajaj Markets is quick and entirely digital. You can get started in just a few simple steps:

  1. Click on the ‘Check Offers’ tab available on this page

  2. Fill in your basic personal details in the online application form

  3. Enter the desired loan amount and select your preferred repayment tenure

  4. Submit the form and wait for the verification process to begin

Once verified, you can view offers from various lenders and proceed with the one that suits your requirements best.

Schemes Offered by the Indian Government for Poultry Farms

The Indian government provides various schemes under MSME and animal husbandry frameworks to support the establishment and expansion of poultry farms. These schemes offer financial assistance, subsidies, and loans for infrastructure, equipment, and livestock.

Here are some of the schemes you should know:

Scheme Name Scheme Type Loan Amount / Coverage

National Bank for Agriculture and Rural Development (NABARD) Poultry Venture Capital Fund (PVCF)

Central

Back-ended capital subsidy of 25% for general category and 33% for SC/ST/OBC communities for setting up poultry farms, including infrastructure and livestock.

Prime Minister’s Employment Generation Programme (PMEGP)

Central

Up to ₹25 Lakhs for manufacturing and ₹10 Lakhs for service/business sectors; applicable for setting up poultry farms and processing units.

MUDRA Yojana (Micro Units Development and Refinance Agency)

Central

Up to ₹10 Lakhs; financing for small poultry enterprises, including working capital and equipment.

National Livestock Mission (NLM)

Central

Subsidy support for poultry farming under the Entrepreneurship Development & Employment Generation (EDEG) component.

Animal Husbandry Infrastructure Development Fund (AHIDF)

Central

Provides low-interest loans for setting up poultry farms, feed plants, and other infrastructure under the Atmanirbhar Bharat Abhiyan.

Maharashtra State Animal Husbandry Scheme

State (Maharashtra)

Loans up to ₹50 Lakhs for setting up poultry farms and other animal husbandry ventures.

Karnataka State Poultry Development Scheme

State (Karnataka)

Financial assistance for poultry farm setup and infrastructure development.

Uttarakhand State Poultry Scheme

State (Uttarakhand)

Subsidies for poultry farms and support for feed, breeding, and veterinary care.

Punjab State Poultry Development Scheme

State (Punjab)

Up to ₹25 Lakhs for poultry farm setup, with a focus on improving egg and meat production.

Tamil Nadu State Poultry Scheme

State (Tamil Nadu)

Financial assistance and subsidies for small and medium poultry farms to enhance productivity.

Disclaimer: The loan amounts and scheme details provided above are indicative. Actual eligibility, coverage, and benefits may vary based on government guidelines, location, and farm size. Always check official portals or local offices before applying.

Conclusion

Starting a poultry farm business in India requires careful planning, the right approvals, and steady financial support. By following the proper steps, arranging required licences, and securing funding through loans or government schemes, you can build a farm that runs efficiently and grows sustainably.

Whether you're just starting or looking to expand, keeping your finances in check and making informed choices will go a long way in shaping the success of your poultry venture.

Frequently Asked Questions

How Profitable Is a Poultry Farm?

Poultry farming can be profitable, with profit margins ranging from 15%–40% depending on the farm size and management practices.

Starting a poultry farm can cost as low as ₹3–7 Lakhs for a small-scale farm, and ₹25–50 Lakhs for large-scale operations.

Create a poultry farm business plan by outlining your goals, market research, land requirements, costs, and operations plan. Focus on financial projections and risk management.

According to general guidelines, a poultry farm should be located at least 500 metres away from human habitation to reduce health and environmental risks. Local regulations may vary by state or municipality.

Yes, if planned carefully, poultry farming can be manageable for new entrepreneurs. With proper guidance, training, and funding, even beginners can run it successfully.

Profit depends on various factors like bird type, feed cost, mortality rate, selling price, and local demand. You may need to deduct expenses like labour, medicine, and electricity to calculate actual income.

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