Overview
Objectives
Through the AIF scheme, the government seeks to improve the productivity and efficiency of the agricultural sector:
To enhance post-harvest management infrastructure.
To facilitate modern packaging and cold storage systems for farmers to sell on their own terms.
To increase private investments in the agricultural sector.
To reduce national food wastage percentage.
To leverage new age technologies such as Internet of Things (IoT) and Artificial Intelligence (AI) to allow innovation in the agriculture sector.
To connect agri-entrepreneurs and startups with funding and collaboration opportunities.
Eligible Borrowers
Under the Agriculture Infrastructure Fund Scheme, a wide range of individuals and entities engaged in agricultural activities are eligible to apply for the loan. These include:
Farmers
Farmer Producer Organisations (FPOs)
Primary Agriculture Credit Societies (PACS)
Agri-entrepreneurs
Startups
Self Help Groups
Joint Liability Groups (JLG)
Marketing Cooperative Societies
Multipurpose Cooperative Societies
National Federations of Cooperatives
State Federations of Cooperatives
Public-Private Partnership Projects sponsored by the central or state government or local bodies
Eligible Projects
The Agricultural Infrastructure Fund will finance the following projects:
Organic inputs production
Bio stimulant production units
Nursery
Tissue culture
Seed Processing
Custom Hiring Centre
Infrastructure for smart and precision agriculture
Logistics facilities such as reefer van and insulated vehicles
Assaying units
Supply chain services including e-marketing platforms
Warehouses and silos
Cold stores and cold chain
Packaging units
Primary processing activities
Further, the following are the eligible projects for building community farming assets for farmer groups:
Hydroponic farming, Mushroom farming, Vertical farming, Aeroponic farming, Poly house/greenhouse, Logistics facilities (including non-refrigerated/insulated vehicles).
Nature of Loan
Quantum of Loan:
For Loan up to Rs. 2.00 Cr covered under Guarantee and subvention. Loan above ₹2 crore can also be considered but scheme benefit is not available.
Repayment Period:
Repayment to be as per cash flow of project being funded. Moratorium for repayment may vary subject to minimum of 6 months and maximum of 2 years. Interest to be paid during moratorium.
The tenor of the loan will be 7 years.
Scheme Benefits:
1. Credit Guarantee Coverage:
Under the Agriculture Infrastructure Fund (AIF) Scheme, eligible borrowers can avail Credit Guarantee Coverage. This coverage is provided under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for loans up to ₹2 crore.
2. Interest Subvention
To further incentivise small-scale borrowers and make loans more affordable, the AIF scheme offers interest subvention. All loans sanctioned under this scheme are eligible for an interest subvention of 3% per annum, subject to a limit set by the scheme guidelines.
Note: AIF scheme is in convergence with State & Central Govt Schemes (AMI, ACABC, PMEGP, NHB, MIDH, PM KUSUM).