The Agriculture Infrastructure Fund (AIF) is a financing facility launched by the Ministry of Agriculture & Farmers Welfare to mobilize ₹1 Lakh Crore in debt financing for viable agricultural infrastructure projects.
Key Features & Funding:
Interest Subvention: 3% per annum interest subvention on loans up to ₹2 Crore for up to 7 years.
Interest Rate Cap: Lending interest rates are capped at 9% p.a. for loans up to ₹2 Crore (under MoU with Ministry).
Credit Guarantee: Fee-free credit guarantee coverage under CGTMSE for loans up to ₹2 Crore. For FPOs, credit guarantee support is provided through NABSanrakshan.
Moratorium Period: Repayment moratorium ranges from 6 months to a maximum of 2 years.
Scheme Duration: FY 2020–21 to FY 2032–33.
Eligible Projects:
Post-Harvest Management: Warehouses, cold storages, cold chains, silos, assaying/grading units, ripening chambers, pack houses, and reefer transport.
Community Farming Assets: Organic input production, bio-stimulants, nurseries, tissue culture, seed processing units, custom hiring centers, smart/precision agriculture tools (drones, IoT, sensors), and solar integration.
Agriculture Infrastructure Fund (AIF) Scheme
The Agriculture Infrastructure Fund (AIF) is a Central Sector Scheme providing medium-to-long-term debt financing for post-harvest management infrastructure and community farming assets. It offers a 3% annual interest subvention on eligible loans up to ₹2 Crore for a maximum of 7 years, along with credit guarantee coverage under CGTMSE/NABSanrakshan.
Eligibility
Eligible Beneficiaries: Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), Joint Liability Groups (JLGs), Farmers, Agri-Entrepreneurs, Startups, and Central/State/Local Body sponsored PPP projects.
Project Viability: Credit assessment and financial viability evaluated by the participating lending institution.
Land/Site Requirement: Ownership or valid long-term lease agreement for the project land.
Potential benefits
Reduces post-harvest losses by improving farm-gate storage, processing, and cold-chain infrastructure.
Significantly lowers borrowing costs via 3% interest subvention and capped interest rates.
Minimizes collateral requirements through government-backed credit guarantee coverage up to ₹2 Crore.
Promotes convergence with other Central & State government subsidies (e.g., PMFME, MIDH, SMAM, PM-KUSUM).
How to apply
Online Registration: Visit the official portal ([https://agriinfra.dac.gov.in/](https://agriinfra.dac.gov.in/)) and create an applicant account.
Project Submission: Complete the online application form and upload the Detailed Project Report (DPR), land records/lease deeds, identity proofs, and financial statements.
Bank Selection: Select the preferred lending bank/institution during application submission.
Appraisal & Approval: The selected bank conducts technical and financial appraisal of the proposal.
Sanction & Disbursement: Upon approval, the bank sanctions the loan and disburses funds, automatically routing eligible interest subvention through the portal.