How do I get a dairy loan with subsidy and what does the subsidy actually cover?

A dairy unit is usually financed as a bank term loan, and any subsidy is given as a back-ended capital subsidy on top of that loan, not as cash in hand. You prepare a project for the animals, shed, equipment and working capital, the bank appraises and sanctions a loan covering most of the cost with your margin money, and you start the unit. Under the eligible scheme a percentage of the project cost is sanctioned as subsidy, kept in a reserve linked to your loan, and adjusted against your final installments if you run the unit properly for the lock-in period. This means you borrow the full amount first and the subsidy reduces your later repayment, rather than cutting the price up front. Eligible items, the subsidy percentage and any special rates for women or SC/ST applicants vary by scheme and state, so confirm the current dairy scheme, subsidy share and lock-in with your bank, the animal husbandry department or NABARD.