Working Capital Loan



Working Capital loan is extended to Dairy Co-operatives (including Milk Unions / Federations / Producer Companies) to tide over its financial need when their capital is likely to get locked up in the form of inventory of milk products/ raw materials.

Eligibility Criteria

  • Borrower must not be a defaulter in repayment of loan to NDDB / other Financial Institutions at the time of application.
  • Past accounts (up to the previous financial year) must be duly audited.
  • The Debt Service Coverage Ratio (DSCR) of the operations to cover the total liability towards NDDB should work out to a minimum of 1.25 times.
  • The borrower should post Operating Profit (EBIDT) consecutively in the last 3 financial years.
  • Current Ratio should be a minimum of 1.00.


Rate of Interest

Effective from 1 April 2016: 8.75% per annum
Effective from 1 March 2017: 8.15% per annum

Circular- rate of interest for working capital loan