Financing for Draught Animals & Carts


  • For purchasing draught animals like bullocks, he-buffaloes, camels, horses, mules, etc. and
  • For purchasing animal drawn carts


  • Farmers,  landless labourers,
  • farmers having owned/ registered leased land may be provided credit for purchasing two animals as per requirement.
  • A farmer can also be finance for one animal provided he/she is already owning an animal or in cases where the farmer is cannot afford more than one animal.
  • Farmers/ landless labourers may be financed for a pair of animals and cart where there is enough scope for hiring the cart.  

Quantum of finance

As per unit cost fixed by NABARD


Upto Rs.1.00 lakh

  • Hypo. of  animals purchased/ bullock cart, etc.
  • L-515
  • Annex the clauses on non-diversion of funds and securitisation enclosed to Br.Cir.No.97/186 dtd. 08.03.2004 with CH-I/CH-II/CHA-IV.

Above Rs.1.00 lakh

  • Hypo. of animals purchased/ bullock cart, etc.  
  • Equitable or Legal Mortgage or Deed of Declaration of land or Collateral Security as appropriate (Legal Mortgage in form CHA-4)
  • Letter of guarantee from guarantor/s wherever considered necessary.
  • Insurance of Livestock/ Bullock cart.


  • Loan upto Rs.1.00 lakh  -  Nil  
  • Loan over Rs.1.00 lakh – 15% to 25%  

Rate of interest

As per Base Rate decided by the Bank from time to time.


Half yearly/ annual installments depending upon the cropping pattern and income from the cart. The loan should be repaid within a period of 4 to 5 years