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

Term 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).