Agriculture Infrastructure Fund
A financing facility of ₹1 lakh crore to improve agriculture infrastructure in India
Scheme Overview
About the Scheme
The Agriculture Infrastructure Fund (AIF) is a financing facility announced by the Government of India to improve agriculture infrastructure in the country. The scheme was announced on May 15, 2020, with revised guidelines issued in May 2022.
The scheme aims to provide medium to long-term debt financing for investment in viable projects for post-harvest management infrastructure and community farming assets through incentives and financial support.
Key Details
- Budget: ₹1 lakh crore (₹1,00,000 crore)
- Implementation Period: 2020-21 to 2032-33
- Department: Department of Agriculture, Cooperation & Farmers Welfare
- Ministry: Ministry of Agriculture & Farmers Welfare
- Objective: To improve agriculture infrastructure in the country
Budget Allocation
| Financial Year | Budget Allocation |
|---|---|
| 2020-21 | ₹4,000 Crore |
| 2021-22 | ₹16,000 Crore |
| 2022-23 to 2025-26 | ₹20,000 Crore per year |
Eligibility Criteria
Who Can Apply?
- Farmers (Individual & Groups)
- Farmer Producer Organizations (FPOs)
- Primary Agricultural Credit Society (PACS)
- Marketing Cooperative Societies
- Multipurpose Cooperative Societies
- Agri-Entrepreneurs & Start-Ups
- Joint Liability Groups
- Self-Help Groups (SHGs) & their Federations
- Government-sponsored Public-Private Partnership Projects
Eligible Projects
The scheme will facilitate the setting up and modernization of key elements of the Agri value chain including:
- Post-harvest management projects
- Cold chain facilities
- Pack houses
- Sorting & grading units
- Warehouses
- Silos
- Primary processing centers
- Ripening chambers
Key Eligibility Criteria
| Parameter | Details |
|---|---|
| Promoter Contribution | 10% of the Project Cost |
| Term Loan | No minimum or maximum loan cap, but maximum benefit will be ₹2 Cr per Project |
| Loan Disbursement Timeline | Loan disbursement should be made between 2020-21 to 2025-26 to be eligible |
| Processing Time | 60 days from the date of application of the Loan |
| Moratorium Period | Minimum of 6 months and Maximum of 2 years (varies by project) |
| Projects per Entity | Maximum 25 projects (in different locations) for private sector entities |
Benefits Under the Scheme
Interest Subvention
- 3% per annum interest subvention on loans up to ₹2 crore
- For loans above ₹2 crore, subvention limited to ₹2 crore
- Maximum period of 7 years
Credit Guarantee
- Coverage available under CGTMSE up to ₹2 crores
- For FPOs, credit guarantee may be availed from the facility created under FPO promotion scheme
- Reduces risk for lenders and improves access to credit
Convergence with Other Schemes
- Can be combined with grants/subsidies from other Central/State government schemes
- Capital subsidies can be considered as promoter's contribution
- Maximizes financial support for eligible projects
Participating Financial Institutions
The following institutions may participate to provide financing under this scheme after signing an MoU with NABARD/DA&FW:
Scheduled Commercial Banks
Scheduled Cooperative Banks
Regional Rural Banks (RRBs)
Small Finance Banks
Non-Banking Financial Companies (NBFCs)
National Cooperative Development Corporation (NCDC)
AIF Benefit Calculator
Input Details
Results
Promoter's Contribution (10%)
₹ 0
Eligible Interest Subvention
₹ 0
Effective Interest Rate After Subvention
0%
Total Interest Savings
₹ 0
Credit Guarantee Coverage
₹ 0
Important Notes:
- • Interest subvention is limited to 3% for loans up to ₹2 crore
- • For loans above ₹2 crore, subvention is limited to ₹2 crore portion only
- • Maximum loan tenure for interest subvention is 7 years
- • Credit guarantee coverage is available up to ₹2 crore
How to Apply
Project Preparation
Prepare a detailed project report (DPR) outlining the proposed infrastructure, cost estimates, implementation plan, and expected benefits. Ensure the project aligns with the eligible categories under AIF.
Bank Selection
Approach any of the participating financial institutions (scheduled commercial banks, cooperative banks, RRBs, small finance banks, NBFCs, or NCDC) that have signed an MoU with NABARD/DA&FW.
Online Application
Submit your application online through the Agriculture Infrastructure Fund portal. You'll need to register, fill in the application form, and upload the required documents including your project report and financial details.
Loan Processing
The bank will evaluate your application, conduct due diligence, and process your loan application. This should be completed within 60 days from the date of application as per scheme guidelines.
Disbursement & Implementation
Once approved, the loan will be disbursed according to the agreed terms. Implement your project as per the approved plan. The interest subvention will be credited directly to your loan account.
Required Documents
For Individual Farmers
- Identity Proof (Aadhaar/Voter ID)
- Land Records/Ownership Documents
- Bank Account Details
- Project Report
- Cost Estimates & Quotations
For Organizations/Entities
- Registration Certificate
- Bylaws/Memorandum of Association
- Resolution for Availing Loan
- Financial Statements (3 years)
- Detailed Project Report
- KYC of Authorized Signatories
Frequently Asked Questions
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