No reports yet
SIGNUP

Agriculture Infrastructure Fund (AIF)

At a glance

The Agriculture Infrastructure Fund is a Rs 1 lakh crore central-sector financing facility, launched on 9 August 2020 under the Ministry of Agriculture & Farmers Welfare. It provides medium- and long-term loans through banks for building post-harvest infrastructure (warehouses, cold storage, processing units) and community farming assets, with a 3% interest subvention and a government-paid credit guarantee on loans up to Rs 2 crore.

Who is eligible

  • Individual farmers and agri-entrepreneurs
  • Farmer Producer Organisations (FPOs) and their federations
  • Primary Agricultural Credit Societies (PACS) and marketing cooperative societies
  • Self Help Groups (SHGs) and Joint Liability Groups (JLGs)
  • Startups in agriculture and allied sectors
  • APMCs, state agencies, and national/state federations of cooperatives

Benefits

  • 3% interest subvention per year on loans up to Rs 2 crore, for a maximum of 7 years. (Loans above Rs 2 crore get the subvention only on the first Rs 2 crore.)
  • Credit guarantee through CGTMSE for loans up to Rs 2 crore, with the guarantee fee paid by the government — so small borrowers do not need heavy collateral.
  • Interest rate on AIF loans is capped at 9% per year.
  • Can be combined ("converged") with other central and state subsidy schemes.
  • Eligible projects include: warehouses, silos, cold chains and cold storage, pack-houses, sorting/grading units, ripening chambers, primary processing (cleaning, de-stoning, grading), e-marketing platforms, and community farming assets such as organic input production and precision-farming infrastructure.

How to apply

  1. Register as a beneficiary on the official portal: agriinfra.dac.gov.in (Aadhaar-based registration).
  2. Prepare a Detailed Project Report (DPR) for your project.
  3. Submit the online application on the portal and choose your preferred lending bank.
  4. The bank appraises the project like a normal loan; once sanctioned, the interest subvention and credit guarantee are applied automatically through the scheme.
  5. Track the application status on the portal. District- and state-level committees monitor implementation.

Documents required

  • Aadhaar and PAN of the applicant/entity
  • Bank account details
  • Detailed Project Report (DPR) with project cost
  • Land/site documents for the proposed infrastructure
  • Registration documents for FPOs/societies/companies (where applicable)
  • Bank loan documents as required by the lending institution

Key dates & status

  • Scheme period: 2020-21 to 2032-33 (interest subvention support runs through this window).
  • Loan disbursement window was scheduled to complete by the end of FY 2025-26 under the scheme as approved — whether fresh sanctions are still open now: confirm on the official portal.
  • Launched 9 August 2020 under the Aatmanirbhar Bharat package.

Common questions

Q: Is this a grant or a loan? A loan. AIF does not give free money — it makes bank loans cheaper (3% interest relief) and easier to get (government-paid credit guarantee).

Q: Can an ordinary farmer apply, or only companies? Individual farmers can apply — for example, to build a small warehouse or cold room on their land. FPOs, PACS, SHGs, and startups are also eligible.

Q: How much loan can I get? The loan size depends on your project and bank appraisal. The 3% interest subvention and free credit guarantee apply up to Rs 2 crore per project.

Q: Can I use AIF with another subsidy scheme? Yes, convergence with other central/state schemes is allowed, subject to each scheme's rules.

Sources: https://agriinfra.dac.gov.in, https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=154999, https://www.manage.gov.in/aif/AIF%20Brochure.pdf. Last verified: 2026-08-07. Always confirm current details on the official portal before acting.