Agriculture Infrastructure Fund (AIF) supports the development of post-harvest management infrastructure and community farming assets. It provides medium- to long-term debt financing with interest subvention and credit guarantees to farmers, agri-entrepreneurs, and cooperatives to strengthen agricultural supply chains and reduce post-harvest losses.
Benefits Offer Under the Scheme
- Interest subvention: 3% per annum interest subsidy on loans, reducing borrowing cost for beneficiaries.
- Credit guarantee support: Credit guarantee coverage for loans up to Rs 2 crore through CGTMSE (fee borne by the government).
- Collateral support: Reduced or no collateral requirement for loans up to Rs 2 crore due to guarantee coverage.
- Long-term financing facility: Access to medium- and long-term loans for building post-harvest infrastructure and community farming assets.
- Moratorium on repayment: Moratorium period ranging from 6 months to 2 years on loan repayment.
- Extended interest subsidy period: Interest subvention available for up to 7 years.
- Convergence with other schemes: Ability to combine benefits with other central/state government schemes for greater support.
- Multi-project eligibility: Eligible entities can undertake multiple infrastructure projects (subject to limits).
- Wide institutional financing: Loans available through multiple institutions such as commercial banks, cooperative banks, NBFCs, etc.
- Project support services: Handholding through a Project Management Unit for project preparation and implementation.
Eligibility
- Eligible Entities: Farmers (individuals and groups), Farmer Producer Organizations and Companies, Agricultural Credit Societies and Cooperatives, AgriTech Startups and Agripreneurs, Central, State and Local Government Agencies, Public-Private Partnerships.
- Multiple Projects: Applications accepted for more than one project.
- Nature of Project: Feasible and economically viable post-harvest infrastructure such as warehouses, cold storage, grading, sorting units, pack houses, ripening chambers.
- Land: Applicant must own or have valid lease of the land.
- Creditworthiness: Applicant must meet the lending institution's credit norms.
- Scheme Period: The scheme is applicable for projects sanctioned during the designated scheme period (originally FY 2020-21 to FY 2025-26).