Livestock farming is a crucial part of Pakistan’s agriculture sector, contributing 11.5% to the GDP and providing livelihoods to millions of rural families. However, many farmers struggle with limited finances to expand their livestock businesses.
To support this sector, several banks, government schemes, and microfinance institutions offer livestock loans in Pakistan.
This guide covers:
- Types of livestock loans available
- Eligibility & required documents
- Top banks & government schemes
- Application process & tips for approval
- Islamic financing options
1. Why Take a Livestock Loan in Pakistan?
Livestock loans help farmers:
- Purchase cows, buffaloes, goats, sheep, or poultry
- Buy animal feed, vaccines, and equipment
- Expand dairy, meat, or poultry businesses
- Improve breeds for higher milk/meat production
With rising demand for dairy and meat products, livestock farming is a profitable business if managed properly.
2. Types of Livestock Loans in Pakistan
A. Commercial Bank Loans
Many Pakistani banks offer livestock loans under agriculture financing schemes, including:
- Zarai Taraqiati Bank (ZTBL) – Specialized in farm loans
- Bank of Punjab (BOP) – Kissan Dost Scheme
- HBL – Agri & Livestock Loans
- UBL – Dehaat Financing
- MCB – Kissan Loan Scheme
Loan Amount: Rs. 50,000 to Rs. 5 million
Interest Rate: 12% – 20% (varies by bank)
Repayment Period: 1 to 5 years
Also Read: Federal Student Loans in the USA
B. Government Loan Schemes
The Government of Pakistan and the State Bank of Pakistan (SBP) offer subsidized loans:
- Kissan Card Scheme (for small farmers)
- Prime Minister’s Youth Loan Scheme (includes livestock)
- Punjab Livestock Card Scheme (interest-free loans)
C. Microfinance & NGO Loans
For small-scale farmers:
- NRSP (National Rural Support Programme)
- AKRSP (Aga Khan Rural Support Programme)
- Khushhali Bank
- JazzCash & Easypaisa Micro Loans
Loan Amount: Rs. 10,000 to Rs. 300,000
Interest Rate: 15% – 25%
D. Islamic Livestock Financing
For those avoiding interest (Riba):
- Meezan Bank – Salam Agriculture Financing
- Dubai Islamic Bank – Murabaha Livestock Loans
- Al Baraka Bank – Islamic Agri-Finance
These loans work on profit-sharing (Mudarabah) or cost-plus (Murabaha) models.
3. Eligibility Criteria for Livestock Loans
- To qualify, farmers typically need:
- CNIC (National ID Card)
- Proof of land ownership or lease agreement
- Livestock business plan (if applying for a large loan)
- Bank account statement (for commercial loans)
- Two guarantors (for some schemes)
Small farmers may get loans with just a CNIC and livestock proof.
4. Required Documents
- CNIC copy
- Proof of farming experience (if applicable)
- Land ownership documents (if collateral is needed)
- Livestock details (number of animals, breed, etc.)
- Bank statement (for commercial loans)
- Business plan (for loans above Rs. 500,000)
5. How to Apply for a Livestock Loan in Pakistan?
Step 1: Choose the Right Loan Scheme
- Small farmers → Microfinance/NGO loans
- Medium/large farmers → Bank loans or government schemes
Step 2: Visit the Bank/NGO Office
- ZTBL, HBL, and BOP have dedicated agriculture loan branches
- NRSP & Khushhali Bank work in rural areas
Step 3: Submit Documents & Fill Application
- Provide CNIC, land proof, and business details
- Some banks require livestock insurance
Step 4: Loan Approval & Disbursement
- Processing time: 3 days to 2 weeks
- Funds are transferred to your account or given in cash
6. Tips to Increase Loan Approval Chances
- Maintain a good credit history (check your CIBIL score)
- Start with a smaller loan if you’re a new borrower
- Provide collateral (land, livestock, or gold) for better terms
- Apply under government schemes for lower interest rates
- Get a guarantor if you have a weak financial profile
7. Risks & Challenges
- High interest rates (if borrowing from private lenders)
- Loan default risks (due to disease outbreaks or price drops)
- Limited awareness (many farmers don’t know about schemes)
Solution:
- Get livestock insurance
- Choose flexible repayment plans
- Consult agriculture experts before borrowing
8. Success Stories
- Ali from Okara took a Rs. 200,000 loan from ZTBL, bought 5 cows, and now earns Rs. 50,000/month from milk sales.
- Fatima from Sindh used a microfinance loan to start poultry farming and doubled her income in 6 months.
Conclusion
Livestock loans in Pakistan can transform small farms into profitable businesses. Whether through banks, government schemes, or microfinance, funding is available for those who meet the criteria.
Key Takeaways:
- Compare interest rates before applying
- Start small and repay on time to build credibility
- Explore Islamic financing if avoiding interest
By using these loans wisely, Pakistani farmers can boost milk, meat, and poultry production, contributing to the country’s economy.