Introduction
The Agriculture Infrastructure Fund (AIF) is a Government of India initiative launched to strengthen agricultural infrastructure across the country.
The scheme provides financing support for projects such as warehouses, cold storage units, supply chain infrastructure, processing facilities,
and logistics infrastructure.
The Government of India has created a financing facility of ₹1 lakh crore to support agricultural infrastructure projects at farm-gate and
aggregation points. The scheme aims to reduce post-harvest losses and improve the agricultural supply chain.
Intended Beneficiaries
The following entities are eligible to apply for loans under the Agriculture Infrastructure Fund scheme:
- Agricultural Produce Market Committee (APMC)
- Agri-Entrepreneurs
- Central Sponsored Public-Private Partnership Projects
- Farmers
- Farmer Producer Organizations (FPOs)
- Federations of Farmer Producer Organizations
- Joint Liability Groups (JLGs)
- Local Body Sponsored PPP Projects
- Marketing Cooperative Societies
- Multipurpose Cooperative Societies
- National Federations of Cooperatives
- Primary Agricultural Credit Societies (PACS)
- Self Help Groups (SHGs)
- Federations of Self Help Groups
- Startups
- State Agencies
- State Federations of Cooperatives
- State Sponsored Public-Private Partnership Projects
Eligible Projects under Agriculture Infrastructure Fund
A. Eligible Projects for All Beneficiaries
- Organic inputs production
- Bio stimulant production units
- Nursery
- Tissue culture
- Seed Processing
- Custom Hiring Center
- Smart agriculture infrastructure and precision agriculture
- Farm automation systems
- Purchase of drones and agricultural sensors
- Remote sensing and Internet of Things (IoT) infrastructure
- Logistics facilities such as Reefer Vans and insulated vehicles
- Assaying Units
- Supply chain services including e-marketing platforms
- Warehouse and Silos
- Cold Storage and Cold Chain
- Packaging Units
- Primary Processing activities
B. Eligible Projects for Community Farming Assets
Farmer groups such as FPOs, PACS, SHGs, JLGs, cooperatives and federations are eligible for additional activities including:
- Hydroponic Farming
- Mushroom farming
- Vertical farming
- Aeroponic farming
- Polyhouse / Greenhouse infrastructure
- Logistics facilities including insulated vehicles
Greenfield Projects under Agriculture Infrastructure Fund
The Agriculture Infrastructure Fund (AIF) also supports greenfield projects, which involve the development of new agricultural infrastructure from the ground up. Entrepreneurs, farmer producer organizations (FPOs), agri-startups, and cooperatives can establish new facilities such as warehouses, cold storage units, processing centers, and logistics infrastructure with financial support under the scheme.
Greenfield agricultural infrastructure projects help improve post-harvest management, reduce wastage of perishable products, and strengthen the agricultural supply chain. These projects are often developed near production areas, agricultural markets, or food processing clusters to improve storage and distribution efficiency.
Through the Agriculture Infrastructure Fund, eligible businesses can obtain loans with interest subsidy benefits and credit guarantee support to develop modern agricultural infrastructure including cold storage facilities, supply chain logistics, and food processing units.
Interest Rate under Agriculture Infrastructure Fund
Interest rates for loans under the Agriculture Infrastructure Fund depend on the lending bank or financial institution. However, the Government provides an interest subsidy of 3% per annum on eligible loans up to ₹2 crore.
Typical Interest Rate Structure
- Bank Interest Rate: 8.5% – 12% depending on lender and borrower profile
- Government Interest Subsidy: 3% per year
- Maximum Loan Amount Eligible for Subsidy: ₹2 crore
- Subsidy Period: Up to 7 years
Example
If a cold storage project takes a loan of ₹2 crore at an interest rate of 10%, the Agriculture Infrastructure Fund provides a subsidy of 3%. The borrower effectively pays only 7% interest. This reduces the interest burden by approximately ₹6 lakh per year.
Credit Guarantee CGTMSE SCheme
- Credit guarantee coverage available under CGTMSE
- Loans up to ₹2 crore may be collateral-free
- Credit guarantee fee paid by the Government
Moratorium Period
- Moratorium period between 6 months and 2 years
How to Apply for AIF Loan
- Prepare a detailed project report
- Submit loan application to a bank or financial institution
- Submit required documents
- Loan appraisal by the bank
- Loan approval and disbursement
Documents Required for Agriculture Infrastructure fund
Basic Documents
- Bank loan application form
- Passport size photographs
- Identity proof (PAN card, Aadhaar card, Voter ID, Driving license)
Address Proof
- Aadhaar card
- Passport
- Electricity bill
- Property tax receipt
Business Documents
- Business registration certificate
- Udyam or MSME registration certificate
- GST certificate (if applicable)
Financial Documents
- Income tax returns for last three years
- Audited balance sheet for last three years
- Bank statements for last one year
Project Documents
- Detailed Project Report
- Land ownership or lease documents
- Layout plans and building approvals
- Local authority permissions if required
Conclusion
The Agriculture Infrastructure Fund scheme plays an important role in improving India’s agricultural supply chain by supporting the development of warehouses, cold storage units, logistics infrastructure, and processing facilities.
By offering interest subsidies, credit guarantees, and long-term financing, the scheme encourages farmers and agri-entrepreneurs to invest in agricultural infrastructure.
If you are planning to develop agricultural infrastructure projects such as warehouses, cold storage units, or processing facilities, you can explore financing options under the Agriculture Infrastructure Fund scheme.
Visit msmeloans.in to learn more about MSME loan opportunities for agriculture infrastructure projects.
What is the Agriculture Infrastructure Fund (AIF)?
The Agriculture Infrastructure Fund (AIF) is a Government of India scheme that provides financial support for building agricultural infrastructure such as warehouses, cold storage units, supply chain logistics, and processing facilities. The scheme aims to reduce post-harvest losses and strengthen the agricultural supply chain.
What is the total fund allocated under the AIF scheme?
The Government of India has created a financing facility of ₹1 lakh crore under the Agriculture Infrastructure Fund to support agricultural infrastructure projects across the country.
Who can apply for Agriculture Infrastructure Fund loans?
Eligible applicants include farmers, agri-entrepreneurs, Farmer Producer Organizations (FPOs), cooperatives, startups, self-help groups (SHGs), agricultural marketing societies, and public-private partnership projects involved in agricultural infrastructure development.
What types of projects are eligible under the AIF scheme?
Projects such as warehouses, cold storage facilities, cold chain logistics, food processing units, packaging units, seed processing units, and agricultural supply chain infrastructure are eligible for financing under the scheme.
Can greenfield projects apply for Agriculture Infrastructure Fund loans?
Yes, greenfield projects that involve building new agricultural infrastructure such as warehouses, cold storage facilities, and processing units from the ground up are eligible for financing under the Agriculture Infrastructure Fund scheme.
What is the interest subsidy under the AIF scheme?
The Agriculture Infrastructure Fund provides an interest subsidy of 3% per annum on loans up to ₹2 crore for a maximum period of 7 years.
Is collateral required for Agriculture Infrastructure Fund loans?
Loans up to ₹2 crore may be eligible for collateral-free financing under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), depending on lender policies.
What is the moratorium period under the AIF scheme?
The Agriculture Infrastructure Fund allows a moratorium period ranging from 6 months to 2 years depending on the nature of the project and lender policies.
What documents are required to apply for an AIF loan?
Applicants generally need identity proof, address proof, business registration documents, financial statements, bank statements, and a detailed project report for the proposed agricultural infrastructure project.
Where can I apply for an Agriculture Infrastructure Fund loan?
Businesses and entrepreneurs can apply through banks, NBFCs, or financial institutions participating in the scheme. You can also explore financing assistance through msmeloans.in for agriculture infrastructure projects.
