The Agriculture Infrastructure Fund (AIF) is a financing facility provided by the Ministry of Agriculture and Farmers Welfare to support investments in agricultural infrastructure projects at farm-gate and aggregation points. The scheme is designed for agri-entrepreneurs, farmers, Primary Agricultural Cooperative Societies, Farmers Producer Organizations (FPOs), start-ups, state agencies, and state-sponsored Public-Private Partnerships (PPPs). It mobilizes medium- to long-term debt financing for projects such as post-harvest management infrastructure, supply chain services (e-marketing platforms, warehouses, silos, pack-houses, assaying units, sorting & grading units, cold chain and logistics facilities), primary processing centers, ripening chambers, and other community farming assets like organic input production units and infrastructure for smart/precision agriculture.
All scheduled commercial banks, scheduled cooperative banks, Regional Rural Banks (RRBs), Small Finance Banks, NBFCs, and the National Cooperative Development Corporation (NCDC) can participate after signing a Memorandum of Understanding (MoU) with NABARD/DA&FW. If needed, NABARD provides need-based refinance support to eligible lending entities.
The scheme offers an interest subvention of 3% per annum on loans up to ₹2 crores per project for a maximum period of 7 years. Each eligible entity may set up to 25 projects (with a cap of ₹2 crore each for private sector entities; no cap on number for state agencies, cooperatives, FPOs, and SHGs). The scheme is operational from 2020-21 to 2032-33, with loan disbursement targeted to complete by the end of FY 2025-26.
Additionally, 24% of total grants-in-aid under the scheme must be utilized for SC/ST entrepreneurs (16% for SC and 8% for ST), and lending institutions are encouraged to provide priority coverage for women and other weaker segments of society.
Benefits
• Enhanced Infrastructure: Investments in post-harvest management, supply chain, and community farming assets improve market access and reduce post-harvest losses.
• Reduced Costs: With modern packaging, warehousing, and logistics facilities, farmers can decide optimum selling times and achieve better price realization.
• Incentivized Lending: Interest subvention at 3% per annum on loans up to ₹2 crores supports investment with reduced borrowing costs.
• Risk Mitigation: Credit guarantee mechanisms and refinance facilities (especially for cooperative banks and RRBs) help lower lending risks and broaden the customer base.
• Inclusive Support: The scheme ensures that at least 24% of the financial assistance is directed toward SC/ST entrepreneurs, with additional priority for women and other vulnerable groups.
Eligibility
• Lending institutions set their own borrower selection criteria based on project viability.
• At least 24% of total grants-in-aid must be utilized for SC/ST entrepreneurs (16% for SC and 8% for ST).
• Lenders must ensure adequate coverage for women and other weaker segments of society as a priority.
Application Process
Online
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Step 01: Apply as a beneficiary by registering at https://agriinfra.dac.gov.in/Home/BeneficiaryRegistration to generate a Beneficiary ID.
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Step 02: Download the Detailed Project Report (DPR) template from the website.
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Step 03: Log in using your Beneficiary ID and fill in the project details in the prescribed format; then upload the DPR.
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Step 04: Submit the application online.
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Step 05: The Ministry of Agriculture and Farmers Welfare will review the application. Eligible proposals are then digitally transferred to the selected bank for credit appraisal.
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Step 06: The bank reviews the project’s viability and sanctions the loan within a maximum of 60 days from the application date.
Documents Required
• Bank’s Loan Application Form/Customer Request Letter (duly filled and signed)
• Passport-Sized Photographs of the promoter/partners/directors
• Identity Proof: Voter ID/PAN/Aadhaar/Driving License (for personal identity)
• Address Proof: Electricity Bill, Property Tax Bill, or similar documents for residence and business office
• Proof of Registration:
– For Companies: Articles of Association/Certificate of Registration
– For Partnerships: Registration Certificate with the Registrar of Firms
– For MSMEs: Registration Certificate (e.g., Udyog Aadhar)
• Income Tax Returns for the last three years (if available)
• Audited Balance Sheets for the last three years (if available)
• GST Certificate (if applicable)
• Land Ownership Records: Title deed/lease deed; if leasehold, then a mortgage permission letter from the lessor
• ROC Search Report of the company (if applicable)
• KYC Documents of the promoter/firm/company
• Bank Statement for the last one year (if available)
• Repayment Track Record of existing loans (loan statement)
• Net Worth Statement of the promoter
• Detailed Project Report (DPR)
• Other relevant documents: Local authority permissions, layout plans/estimates, building sanction, etc.
Frequently Asked Questions (FAQs)
Q: What is the interest subvention offered by the scheme?
A: The scheme offers an interest subvention of 3% per annum on loans up to ₹2 crores for a maximum period of 7 years.
Q: What is the moratorium period for the project under this scheme?
A: The details of the moratorium period are specified in the loan agreement and are subject to the terms agreed by the lending institution.
Q: Is interest subvention allowed during the moratorium period?
A: Yes, interest subvention is applicable for the moratorium period as per the scheme guidelines.
Q: Are processing units or post-harvest facilities covered under the scheme?
A: Yes, the scheme covers a range of projects including post-harvest management facilities, warehousing, silos, cold chain infrastructure, and other related infrastructure.
Q: How many projects can an eligible entity set up?
A: An eligible entity can propose up to 25 projects in different locations, each eligible for loans up to ₹2 crores. For private sector entities, the cap is 25 projects, while this limitation does not apply to state agencies, cooperatives, FPOs, and SHGs.
Q: What does “different location” mean in this context?
A: It refers to projects that are situated in distinct geographical areas; multiple projects at the same location must collectively not exceed the overall cap of ₹2 crores.
Q: Is there a cap on the lending rate?
A: The lending rate is determined by the participating banks, but the scheme provides interest subvention of 3% per annum for eligible loans.
Q: What will be the lending rate for loans above ₹2 crore?
A: Loans above ₹2 crores are not covered under this scheme; each project is eligible for financing up to ₹2 crores.
Q: Can an eligible entity choose a project other than those mentioned in the scheme?
A: The project must fall within the eligible categories of infrastructure such as post-harvest management, supply chain development, or community farming assets.
Q: Can the loan be availed in offline mode?
A: The application process for the Agriculture Infrastructure Fund is conducted online through the designated portal.
Q: What is the time taken to get a decision on a loan application?
A: The decision is typically conveyed within 60 days from the date of the loan application.
Q: Can the Detailed Project Report (DPR) be submitted in any format?
A: The DPR must be submitted in the prescribed format available on the official website.
Q: Is it mandatory to geo-tag the project?
A: Yes, geo-tagging may be required as part of the project monitoring and verification process.