The Agriculture Infrastructure Fund is a ₹1 lakh crore central government scheme that provides affordable loans for building agricultural infrastructure across India. It is one of the most important financing facilities available for strengthening post-harvest systems and farm-level assets in the country.
This guide explains the AIF scheme in detail, including its objectives, benefits, eligible projects, interest rates, loan terms, eligibility criteria, required documents, and step-by-step application process.
Key Takeaways
- The Agriculture Infrastructure Fund is a ₹1 lakh crore scheme offering cheap loans for farm infrastructure.
- You get a 3% interest subvention on loans up to ₹2 crore, for up to 7 years.
- Loans up to ₹2 crore are collateral-free (government pays the CGTMSE guarantee fee).
- There is no capital subsidy — the benefit is interest relief, not free money.
- Scheme Validity: 2020–21 to 2032–33
- Official Portal: agriinfra.dac.gov.in
- Helpline Number: 011-23604888
- Open to farmers, FPOs, PACS, SHGs, agri-entrepreneurs, and startups.
What Is Agriculture Infrastructure Fund?
The Agri Infrastructure Fund (AIF) is a Central Sector Scheme of the Government of India that provides a medium- to long-term debt financing facility for building post-harvest management infrastructure and community farming assets at farm-gate and aggregation points. It is also known as the National Agriculture Infra Financing Facility (NAFIF), and is managed by the Department of Agriculture & Farmers Welfare (DA&FW) through its official portal.
The scheme was launched in 2020 under the Aatmanirbhar Bharat Abhiyan with a total corpus of ₹1 lakh crore, and it will remain operational from 2020–21 to 2032–33. Under the Agriculture Infrastructure Fund, the government does not give the loan directly — banks provide the loan, while the government offers a 3% interest subvention and credit guarantee support to make it affordable for farmers.
The main purpose of the Agriculture Infrastructure Fund is to help farmers, FPOs, APMCs, and agri-entrepreneurs build storage and processing facilities so they can reduce post-harvest losses, add value to their produce, and sell at better prices.
Objectives of the AIF Scheme
The Agri Infrastructure Fund is designed to strengthen the entire agricultural value chain, benefiting everyone from the farmer to the end consumer.
1. For Farmers, FPOs, PACS, and Cooperative Societies:
- Help farmers build storage and processing facilities near their farms to sell produce at the right time and at better prices.
- Reduce post-harvest losses through proper storage and logistics facilities.
- Remove dependence on middlemen by enabling direct access to buyers.
- Lower input costs through shared community farming assets.
- Improve overall farmer income through better price realization.
2. For the Government:
- Make agricultural infrastructure projects viable through interest relief and credit guarantees.
- Attract private and public investment into farm infrastructure.
- Reduce national food wastage by improving post-harvest storage and marketing systems.
- Enable government agencies to build large-scale infrastructure through PPP projects.
3. For Agri-Entrepreneurs and Startups:
- Provide dedicated funding for innovation using technologies like IoT, AI, and precision farming.
- Create opportunities for collaboration between technology providers and farming communities.
4. For the Banking Ecosystem:
- Reduce lending risk through government-backed credit guarantees and interest subvention.
- Expand and diversify bank loan portfolios by directing more capital towards different agricultural projects.
- Strengthen cooperative banks and RRBs through refinance facilities.
5. For Consumers:
- Better quality produce reaches the market when supply chain wastage is reduced.
- Help stabilize food prices through better storage and distribution infrastructure.
Agriculture Infrastructure Fund (AIF) Benefits
The Agriculture Infrastructure offers key benefits that make it one of the best schemes for farm infrastructure.
Interest Subvention:
The main benefit is interest relief. The government gives a 3% per year reduction on the interest charged by your bank, on loans up to ₹2 crore, for a maximum of 7 years. This lowers your loan cost significantly over time and makes big projects affordable.
Credit Guarantee (No Collateral):
For loans up to ₹2 crore, the government pays the CGTMSE credit guarantee fee on your behalf. This means many small farmers and borrowers do not need to give any collateral to get the loan.
Long Tenure:
The loans offer a flexible repayment period of up to 7 years, which includes a moratorium period ranging from 6 months up to 2 years.
Convergence With Other Subsidies:
The Agriculture Infrastructure Fund can be combined with other central or state subsidy schemes for the same project. This makes farming projects even more affordable for farmers and entrepreneurs.
Multiple Projects Allowed:
A single borrower can take up to 25 projects in different locations under the AIF scheme, and each project is independently eligible for the ₹2 crore interest subvention.
Who Is Eligible for the AIF Scheme?
A wide range of farmers and farm bodies can apply under Agriculture Infrastructure Fund:
- Individual farmers
- Farmer Producer Organisations (FPOs)
- Federation of Farmer Producer Organisations
- Primary Agricultural Credit Societies (PACS)
- Self Help Groups (SHGs)
- Federations of Self Help Groups
- Joint Liability Groups (JLGs)
- Marketing Cooperative Societies
- Multipurpose Cooperative Societies
- National Federations of Cooperatives
- State Federations of Cooperatives
- Agri-entrepreneurs and startups
- Agricultural Produce Market Committees (APMCs)
- State agencies
- Central sponsored Public-Private Partnership Projects
- State-sponsored Public-Private Partnership Projects
- Local Body sponsored Public-Private Partnership Projects
You must contribute at least 10% of the project cost yourself. Also, a private entity like a farmer or startup can set up a maximum of 25 projects in different locations under the scheme.
Agriculture Infrastructure Fund Eligible Projects
The Agriculture Infrastructure Fund covers two broad types of projects.
Post-Harvest Management Infrastructure:
- Warehouses, silos, and cold storage
- Pack houses and ripening chambers
- Sorting, grading, and assaying units
- Primary and integrated secondary processing units such as fruit pulp, flour milling, and packaging
- e-marketing platforms and supply-chain logistics
- Farm residue and waste management infrastructure
Community Farming Assets:
- Custom Hiring Centres for farm machinery
- Organic and bio-input production units
- Hydroponic, aeroponic, and vertical farming units
- Farm Automation & Modern Machinery
- Solar-powered farming systems (PM-KUSUM components A, B, C)
- Nurseries and tissue culture facilities
- Precision-agriculture infrastructure
The interest rate is capped so that the benefit of the subsidy actually reaches you and the loan stays affordable. For loans above ₹2 crore, the 3% relief is given only on the ₹2 crore portion, but you can still take a bigger loan.
Documents Required for AIF Application
Keep these documents ready before applying:
- Bank's loan application form duly filled and signed
- Passport-size photographs of the promoter/partners/director
- Identity & address proof: Aadhaar card, Voter ID, PAN card, Driving license, Passport, Electricity bill, or Property tax bill
- Business address proof: Electricity bill, Property tax receipt, or Certificate of Incorporation for companies/firms (if applicable)
- Land ownership or lease records
- Detailed Project Report (DPR)
- Bank account details
- Bank statement for the last 1 year (if available)
- Income Tax Return for last 3 years (if available)
- Audited Balance Sheet of last 3 years (if available)
- GST Certificate (if applicable)
- ROC Search Report of the Company
- KYC documents of the promoter/firm/company
- Repayment track record of existing loans (loan statement)
- Net Worth Statement of the promoter
- Project cost quotations or estimates
- Local authority permissions, layout plans, and building sanction (as applicable)
- Entity registration (for FPO, SHG, or cooperative)
How to Apply for Agriculture Infrastructure Fund (Step-by-Step)
Applying for the AIF scheme is simple and fully online:
- Register as a beneficiary: at the portal to generate a Beneficiary ID (you'll need PAN and Aadhaar, plus registration documents if you're a society/FPO/company).
- Prepare a Detailed Project Report (DPR): Download the DPR template from the website and fill in your infrastructure plan, cost estimate, and cash-flow projections.
- Log in and submit the application: Click 'Loan Applications', fill in the project details (name, description, cost, annual revenue), project address and geo-location, and loan details, then upload the DPR and submit.
- Verification: After submission, the application is verified by the Project Management Unit (PMU); you'll get an SMS once it's verified, after which it automatically goes to your selected bank.
- Bank appraisal and sanction: The bank reviews the project's viability and sanctions the loan within a maximum of 60 days from the application date. You'll receive status updates by SMS at each stage.
- Disbursement: Once approved, the loan is disbursed and the 3% interest subvention is credited directly to your loan account by the bank.
You can also apply through the JanSamarth portal, which is an alternative government route for Agriculture Infrastructure Fund loan applications.
Agriculture Infrastructure Fund Helpline Number & Support
Need help with the Agriculture Infrastructure Fund scheme? Use the official support channels below.
Helpline Number: 011-23604886
011-23604897 (For Bank Support)
011-23604904 (For IT Support)
Email: support.agriinfra@gov.in
Official portals:
agriinfra.dac.gov.in - Official portal for Agriculture Infrastructure Fund applications and scheme details.
jansamarth.in - Official portal to apply for Agriculture Infrastructure Fund loans and check loan eligibility.
State-level help
- State Nodal Officer: Official state-level contact for implementation and support.
- State Agriculture Department: Provides guidance on applications and project approval.
- District Agriculture Office: Assists with local scheme-related queries and documentation.
