How to obtain a livestock farming loan? In this article we will discuss loan opportunities that public and private banks provide in collaboration with the government to livestock farmers.
What Is a Livestock Farming Loan?
A livestock farming loan is a financing option offered by banks and public institutions specifically to livestock breeders and animal producers registered in the Farmer Registration System (ÇKS). These loans come with favorable interest rates and terms tailored to the sector. Some livestock loans include additional features such as repayment schedules aligned with annual production programs, where principal and interest payments begin after the animals are sold or slaughtered.
What Are the Application Requirements for a Livestock Loan?
Livestock producers applying for a livestock loan must present the following documents to the bank where they request credit:
- Farmer Registration System (ÇKS) certificate
- Copy of national identity card
- Proof of residence
- Copies of title deeds
- For businesses operating under the balance sheet system, balance sheet and income statements for the last three years
- Business registration certificate
- Membership certificate if registered with breeding or improvement associations
Banks Offering Livestock Loans
Banks and their livestock loan programs include the following:
- Ziraat Bank: Ziraat Bank provides standard operating and investment loans to livestock farmers. In cooperation with the Ministry of Agriculture and Forestry, it also offers low-interest or interest-free loans with terms from 1 to 7 years under certain projects and programs.
Ziraat Bank’s livestock loan program includes small ruminant loans of up to 30,000 TRY with annual repayments and interest-free periods in some cases, and similar loans up to 30,000 TRY for breeders who own fewer than 15 cows with terms up to 7 years. It is important to note these loans are not grants; applicants’ creditworthiness is evaluated. Detailed application conditions can be obtained at Ziraat Bank branches.
Through cooperation with agricultural credit cooperatives, Ziraat Bank also offers low-interest loans up to 750,000 TRY for large-scale animal producers. Applications for these loans must be made via the agricultural credit cooperatives.
Another financing option from Ziraat Bank is credit provided under the European Union’s Instrument for Pre-Accession Assistance – Rural Development Component, which can offer favorable terms and interest rates for livestock farmers.
- Denizbank: Denizbank supports livestock businesses under its Project-Based Investment Loans. These loans target beef and dairy cattle, small ruminants, and breeding stock operations, financing construction work, machinery and equipment purchases, live animal purchases and other capital needs based on submitted project plans.
Denizbank also issues a Producer Card product that serves as a practical payment and short-term financing tool for livestock farmers with smaller, day-to-day funding needs.
Within its agricultural investment loan programs, Denizbank can finance up to 75% of equipment, dairy animal and fattening animal purchases with terms of up to 60 months for livestock producers.
- İş Bankası: İş Bankası offers the İmece Card program. Through this program, purchases of agricultural equipment and feed from participating vendors can be financed with a favorable agricultural loan tied to the İmece Card.
- VakıfBank: VakıfBank provides long-term, purpose-driven loans tailored to livestock operations within its agricultural banking services, with repayment schedules suited to the activity type.
In addition to operating loans for livestock farms, producers may be eligible for IPARD grant-supported investment loans and machinery-equipment loans that complement livestock financing options.
- QNB Finansbank: QNB Finansbank offers livestock loans under its commercial credit products. These loans can have terms up to 24 months and may cover up to 75% of the production costs associated with the loan. Repayment frequency options include payments every 1, 3, 6 or 12 months depending on the agreement.
Yapı Kredi Bank: Yapı Kredi provides agricultural banking products for livestock farmers to cover production-related needs such as feed, animal care, veterinary drugs and vaccinations, water and electricity, offering loans with terms up to 12 months.