Agriculture Infrastructure Fund
Bank loans for post-harvest and farm infrastructure — warehouses, cold stores, processing, solar pumps and more — with 3% interest relief and a government-paid credit guarantee.
- Lead benefit
- 3%interest relief a year
- Components
- 2each read from the document
- Who can apply
- 10kinds of applicant
- Closing date
- Noneapply any time
What it pays
The government pays 3% a year of the interest on up to ₹2 crore of your loan, for up to 7 years.
What the document says, word for word
Credit guarantee for loans up to ₹2 crore is also covered under CGTMSE, with the fee paid by the government; FPOs may use the FPO-scheme guarantee and still get the fee reimbursed (s. 5, item 2). The ₹2 crore limit is per location; a farmer, agri-entrepreneur or start-up can have at most 25 such projects (s. 8). Repayment is up to 7 years including up to 2 years’ moratorium (s. 4).
“All loans under this financing facility will have interest subvention of 3% per annum up to a limit of ₹ 2 crore. This subvention will be available for a maximum period of 7 years. In case of loans beyond ₹ 2 crore, then interest subvention will be limited up to ₹ 2 crore.”Your AIF loan of up to ₹2 crore can be covered by a CGTMSE credit guarantee, and the government pays the guarantee fee.
What the document says, word for word
The guideline does not print the fee rate, so we show no rupee figure. Eligible projects (s. 6) include warehouses and silos, cold stores and cold chain, packaging, assaying, sorting and grading units, ripening chambers, primary and integrated processing, e-marketing and supply chain services, vermicompost and other organic inputs, compressed biogas, bio-stimulants, drones and precision farming, nurseries, tissue culture, seed processing, custom hiring centres (at least 4 machines), combine and sugarcane harvesters, PM-KUSUM solar plants and pumps, spirulina, sericulture and honey processing, hydroponic, mushroom, vertical and aeroponic farming, and polyhouses/greenhouses. Tractors and non-refrigerated logistics vehicles are not eligible for individual farmers (s. 6, Note 4). Any capital subsidy from another scheme (MIDH, PMFME, SMAM, PMKSY, PM-KUSUM…) can be combined and counts as your contribution, but at least 10% must be your own (s. 13).
“Credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to ₹ 2 crore. The fee for this coverage will be paid by the Government. In case of FPOs the credit guarantee may be availed from the facility created under FPO promotion scheme of DA&FW and NABSanrakshan Trustee Company Pvt. Ltd. However, FPOs are also eligible for reimbursement of credit guarantee fee under AIF.”How much can I claim?
Enter loan amount to see the figure.
Credit guarantee for loans up to ₹2 crore is also covered under CGTMSE, with the fee paid by the government; FPOs may use the FPO-scheme guarantee and still get the fee reimbursed (s. 5, item 2). The ₹2 crore limit is per location; a farmer, agri-entrepreneur or start-up can have at most 25 such projects (s. 8). Repayment is up to 7 years including up to 2 years’ moratorium (s. 4).
Who can apply
- Other farmer
- Small or marginal farmer
- SC farmer
- ST farmer
- Woman farmer
- FPO
- Self-help group
- Cooperative
- Agri entrepreneur
- Agri startup
Papers you need
- Aadhaar-linked bank account (s. 16)
How to apply
- Check that your project is in the eligible list — post-harvest management projects or viable farming assets (s. 6).
- Apply for the loan on the online AIF platform, agriinfra.dac.gov.in, choosing a participating bank or lending institution (s. 9, 12).
- Put in at least 10% of the project cost yourself; a capital subsidy from another scheme counts towards it (s. 13).
- The lending institution appraises the project and decides the loan (s. 17); the loan is paid into an Aadhaar-linked bank account (s. 16).
Applying is free. Never pay anyone to apply for you.
When to apply
The guidelines set no closing date.
Combining with other schemes
The documents do not say whether this can be combined with other schemes. Ask the implementing office before you count on both.