Agriculture Infrastructure Fund (AIF) — 3% Subsidy Loan

What is the Agriculture Infrastructure Fund (AIF)?

Agriculture Infrastructure Fund (AIF) is the Government of India's medium-to-long term debt financing scheme to build post-harvest management infrastructure and community farming assets. Launched in 2020, it provides bank loans with 3% interest subvention (subsidy) per year.

Key objective: Bridge the gap in agri-supply chain infrastructure — particularly cold storage, warehouses, and primary processing — to reduce post-harvest losses and increase farmer incomes.

Total fund size: ₹1,00,000 crore (₹1 lakh crore) Scheme period: 2020 to 2032

Interest Subsidy — How It Works

AIF loans are given by banks (at their normal lending rates), but the government pays 3% per annum interest subvention directly to the bank on your behalf.

Example:

• Bank lending rate: 10% per annum
• AIF interest subvention: 3% paid by government
• Effective rate you pay: 7%

This subvention continues for a maximum of 7 years from the date of first disbursement.

Eligible Activities Under AIF

Who is Eligible?

• Individual farmers
• FPOs (Farmer Producer Organisations) — maximum loan ₹2 crore per project
• Agricultural entrepreneurs and agri-businesses
• Primary Agricultural Credit Societies (PACS)
• Self Help Groups (SHGs) involved in agriculture
• State agencies and APMCs
• Startups in agri-tech space
• Central/State government organisations

Loan Amount

• Minimum: No fixed minimum (but practical floor is ₹25 lakh)
• Maximum: ₹2 crore per project for individual farmers/FPOs
• For startups, agri companies, cooperatives: up to ₹100 crore per project

Credit Guarantee Under AIF

• For loans up to ₹2 crore: Government provides credit guarantee via CGTMSE — no collateral required for this portion
• For loans above ₹2 crore: Collateral as per bank norms

How to Apply for AIF

Online Application

1. Go to agriinfra.dac.gov.in
2. Register as borrower (Aadhaar + mobile OTP)
3. Select type of beneficiary (individual / FPO / cooperative / agri-entrepreneur)
4. Fill in:
   • Project details (type of infrastructure, location)
   • Estimated project cost
   • Business plan / project report
   • Land/premises details
5. Select preferred bank
6. Submit application

The application goes to the bank, which evaluates and sanctions the loan. Upon disbursement, the 3% subvention is credited by the government to your loan account each year.

Bank Partners

All major banks participate: SBI, PNB, BOI, Canara Bank, HDFC, ICICI, and over 25 others. You can choose your preferred bank on the portal.

Documents Required

1. Aadhaar card + PAN of promoters
2. Project report (detailed cost estimate, technical feasibility)
3. Land documents — ownership or long-term lease (10+ years)
4. Registration proof — Udyam for enterprises; FPO registration certificate
5. Financial projections (projected revenues, expenses for 5 years)
6. GST registration (if applicable)
7. Bank account details

AIF vs Other Agri Schemes

Frequently Asked Questions

Can a farmer use AIF to build a cold storage unit on their own land?

Yes — individual farmers with agricultural land can apply for AIF loans to build cold storage, pack houses, or primary processing units. The land must be owned or under long-term lease.

What is the maximum loan tenure under AIF?

Loan tenure up to 7 years (with interest subvention for the same period). Some banks offer extended repayment up to 10 years.

Is there a moratorium (repayment holiday) under AIF?

Most banks allow a moratorium of 6–12 months (interest payment only, no principal) after disbursement to allow the infrastructure to be built and commissioned. Confirm with your bank.

Can an FPO access AIF for a shared cold storage serving multiple villages?

Yes — FPOs are among the priority beneficiaries for AIF. A shared cold storage or warehouse serving multiple farmers through an FPO is exactly the type of project AIF is designed for.

Is AIF available for dairy or fisheries infrastructure?

Yes — AIF is not limited to crop post-harvest. Dairy (milk chilling units, storage) and fisheries (cold chain, fish landing/processing) infrastructure are also eligible.

Official Links

• Apply: agriinfra.dac.gov.in
• Ministry of Agriculture: agricoop.nic.in
• AIF guidelines: agricoop.nic.in/en/page/aif
• NABARD (AIF partner): nabard.org
• Helpdesk: 011-23382012 (Ministry of Agriculture)