Uttar Pradesh Gopalak Yojana
A subsidised bank loan — up to ₹9 lakh at just 3% effective interest — for starting or scaling a dairy unit of 10 to 20 cows or buffaloes.
Run by: Dairy Development Department, Government of Uttar Pradesh
- Loan ceiling
- Up to ₹9 lakh
- Interest subsidy
- 4% by state govt
- Effective rate
- ~3% for farmer
- Unit size
- 5–20 dairy animals
Overview
Uttar Pradesh is India's largest milk producer, yet most of that output comes from small holdings of two or three animals. Scaling up to a proper ten-cow or twenty-cow unit requires capital that a village household rarely has on hand, and commercial interest rates make the maths unattractive. The Gopalak Yojana bridges that gap: a bank loan of up to ₹9 lakh for setting up or expanding a dairy unit, with the state government absorbing four percentage points of the interest so the farmer pays an effective rate of only 3%.
The scheme is run by the Dairy Development Department and targets two groups equally: unemployed youth looking for a livelihood and existing livestock keepers ready to grow. A borrower must maintain at least five dairy animals (cows or buffaloes) and can scale to ten or twenty. The loan covers animal purchase, shed construction, feed arrangements and equipment — the essentials of a functional dairy operation. Applications go through the district Dairy Development Officer and are processed by commercial or cooperative banks.
This is a loan programme, not a grant: the principal must be repaid. What the government provides is the interest subsidy, which brings the cost of borrowing down to a level comparable with Kisan Credit Card lending. Farmers already keeping cattle for milk — or planning to — should also look at the Nand Baba Milk Mission, a separate scheme that offers direct capital subsidies (not loans) for indigenous-breed dairy units. The two are complementary, not alternatives.
What you get
The benefit as the state notifies it — nothing here is an estimate.
- Bank loan of up to ₹9 lakh for setting up or expanding a dairy unit.
- Government pays a 4% interest subsidy — effective borrowing cost around 3%.
- Covers animal purchase, shed construction, feed setup and equipment.
- Open to both unemployed youth seeking livelihood and existing cattle keepers scaling up.
Who is eligible
State schemes usually state their criteria as prose rather than a checklist. This is that prose, unpacked — the department’s verification is what decides.
You qualify if
- Permanent resident of Uttar Pradesh
- Age 18 years or above
- Unemployed youth or existing livestock farmer
- Must have adequate space or an existing shed for housing cattle
- Minimum five dairy animals (cows or buffaloes) to be maintained
- Not a government employee or pensioner
Not covered
- Government employees and pensioners
- Applicants who already have an outstanding dairy-sector loan from the same bank
- Units with fewer than five dairy animals
Documents you need
Have these ready before you start — most rejections are a missing paper, not a missing right.
- Aadhaar card
- Domicile / residence certificate of Uttar Pradesh
- Bank passbook (savings account in a nationalised or cooperative bank)
- Project report for the proposed dairy unit
- Income certificate
- Passport-size photographs
- Land or shed ownership / lease document
How to apply
Fewer steps than a central scheme, and usually one office rather than a portal.
- 1
Prepare a project report
Outline the dairy unit: how many animals, shed layout, feed plan and expected milk output. The district Dairy Development Officer can help draft this.
- 2
Apply at the District Dairy Development Office
Submit the application with documents at the office of the District Dairy Development Officer. The officer verifies eligibility and forwards to the bank.
- 3
Bank appraisal and sanction
The bank appraises the project report, inspects the proposed site and sanctions the loan. The interest subsidy is applied automatically — no separate subsidy application is needed.
- 4
Set up the unit and begin repayment
Use the disbursed loan to purchase animals, build the shed and start operations. Repayment follows the bank's schedule at the subsidised interest rate.
If something goes wrong
Missing from the list, or payment stuck — here is the channel the department itself publishes for it.
- For a delayed or rejected application, take it up first with the Block Veterinary Officer, then the District Dairy Development Officer at the district collectorate. Keep a copy of your application acknowledgement.
- Beyond the department, use the UP Jansunwai portal — jansunwai.up.nic.in — or the CM Helpline at 1076 to register a grievance. Track it with the reference number the portal issues.
Frequently asked questions
How is this different from the Nand Baba Milk Mission?
Gopalak Yojana is a loan scheme: the bank lends money, the government subsidises the interest. Nand Baba Milk Mission is a direct subsidy scheme: the government pays part of the unit cost as a grant via DBT, and the farmer keeps it. The two can complement each other but serve different purposes.
What breeds of cattle are eligible?
Both cows and buffaloes are covered. There is no restriction to indigenous breeds — crossbred and exotic dairy breeds are also eligible. However, the Nand Baba sub-schemes specifically incentivise indigenous (desi) breeds; if you plan to keep Sahiwal, Gir or Tharparkar, check that scheme too.
Can an unemployed person with no farming background apply?
Yes. The scheme explicitly targets unemployed youth as one of its two beneficiary groups. You will need to show a viable project report and adequate space for the animals, but prior dairy experience is not a formal requirement.
Is collateral required for the loan?
Bank lending norms apply. For smaller loan amounts (generally up to ₹1.6 lakh under RBI guidelines), no collateral is required. For larger amounts, the bank may ask for collateral or a guarantor — this depends on the lending bank's policy, not the scheme itself.
Do I repay the full ₹9 lakh or only the principal?
You repay the principal plus interest, but the effective interest rate is around 3% because the state government absorbs 4% of the bank's rate. The subsidy applies for the loan tenure — you do not need to claim it separately.
Can I keep buffaloes instead of cows?
Yes. The scheme covers both cows and buffaloes. Murrah buffaloes, for instance, are a common choice in western UP for their high fat-content milk.
What if I already have three animals — can I get a loan for five more?
Yes, the scheme covers expansion of existing units as well as new setups. You must maintain at least five dairy animals in total after the expansion.
Facts checked against updairydevelopment.gov.in on 26 September 2026. editorial policy.