Agriculture Infrastructure Fund
Ministry of Agriculture & Farmers' Welfare
Implementing agency: NABARD / Scheduled Commercial Banks / RRBs / Small Finance Banks
Key Benefit
Loan up to ₹2 crore per project. Interest subvention: 3% per annum for 7 years. Credit Gua
About this Scheme
AIF was announced as part of the Aatmanirbhar Bharat package in 2020 to address India's massive post-harvest infrastructure gap. India loses an estimated ₹90,000 crore worth of farm produce annually due to lack of cold storage, grading facilities, and processing infrastructure near farms.
To provide medium and long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets.
What You Get
Loan up to ₹2 crore per project. Interest subvention: 3% per annum for 7 years. Credit Guarantee: CGTMSE covers up to ₹2 crore (no collateral needed). Eligible infrastructure: Warehousing, cold chains, primary processing, ripening chambers, packhouses, logistics hubs, organic input production units.
Important before applying
AIF is designed for individual farmers, FPOs, SHGs, cooperatives, agri-entrepreneurs, start-ups. The 3% interest subvention means a ₹50 lakh loan at 9.5% actually costs only ₹3.25 lakh/year — saving ₹1.5 lakh annually.
How to Apply - Step by Step
Step 1: Create a project report for your infrastructure project. Step 2: Register on agriinfra.dac.gov.in. Step 3: Submit your project for primary evaluation on the portal. Step 4: Project is assigned to a lending institution. Step 5: Bank evaluates creditworthiness. Step 6: Loan sanctioned; bank releases funds in tranches. Step 7: Government provides 3% interest subvention directly to bank on your behalf.
Documents You Need
Project Report / Business Plan
Detailed plan covering infrastructure type, cost, revenue projections, and market linkage. NABARD and KVKs provide free templates.
Land Documents
For own land: ownership records. For leased: registered lease agreement
Identity & Address Proof
Aadhaar, PAN card
Bank Statements (6 months)
For creditworthiness assessment
Quotations from Contractors
For construction, cold chain equipment, and other infrastructure components
Frequently Asked Questions
Q: I want to start a small food processing unit — is AIF applicable?
A: Yes, absolutely. Primary processing (cleaning, grading, sorting, drying, milling) is explicitly covered under AIF. A ₹20–50 lakh food processing unit is ideal AIF territory.
Q: I am not an FPO. Can I apply as an individual farmer?
A: Yes. Individual farmers can apply for AIF for on-farm primary processing and storage infrastructure. CGTMSE collateral-free guarantee applies to individual borrowers too for loans up to ₹2 crore.