Agriculture Infrastructure Fund (AIF) Scheme: Full Guide for Farmers to Get Low-Interest Loans up to Rs 2 Crore – Eligibility, Benefits, Documents, and Application Process LOAN 5
The Agriculture Infrastructure Fund (AIF) is one of the most importa nt central sector schemes launched by the Government of India to strengthen post-harvest management infrastructure and improve overall agricultural productivity. Introduced in 2020, the scheme aims to bridge the huge gap in agri-infrastructure across the country by providing medium to long-term financial assistance at subsidized interest rates.
Under the AIF scheme, farmers, Farmer Producer Organizations, agri-startups, cooperatives, and various agriculture-based institutions can avail loans of up to Rs 2 crore with 3 percent annual interest subvention, credit guarantee, flexible repayment, and moratorium benefits.
This 3000-word detailed article explains everything you need to know about the Agriculture Infrastructure Fund, including project eligibility, loan benefits, credit guarantee support, required documents, and step-by-step application procedure.
Introduction: Why India Needs the Agriculture Infrastructure Fund
Indian agriculture still relies heavily on traditional methods and outdated infrastructure. Farmers often struggle due to:
- High post-harvest losses
- Lack of storage facilities
- Poor transportation systems
- Absence of modern processing units
- Limited access to credit
- Dependency on private money lenders
According to various agricultural surveys, India loses nearly 15 to 20 percent of its total produce during post-harvest stages because of inadequate infrastructure. Fruits and vegetables suffer even higher losses, sometimes touching 30 to 40 percent.
To resolve these long-standing issues and make Indian agriculture competitive, the Government of India introduced the Agriculture Infrastructure Fund (AIF). The primary goal is to encourage private and community investment in agriculture infrastructure across the country. Through concessional loans, credit guarantee support, and long-term repayment benefits, the scheme acts as a backbone for strengthening rural agricultural systems.
What Is the Agriculture Infrastructure Fund (AIF)?
The Agriculture Infrastructure Fund is a ten-year long central sector financing facility under which beneficiaries can access loans for building post-harvest management infrastructure and community farming assets. The scheme focuses on developing modern facilities that can reduce wastage, improve storage, enhance logistics, and increase farmers’ income.
Key Purpose of AIF
- Strengthening post-harvest management systems
- Reducing crop losses and wastage
- Improving value addition
- Encouraging modernization of agriculture
- Attracting private investment in agriculture
- Creating new job opportunities in rural areas
- Increasing overall agricultural export capacity
- Empowering Farmer Producer Organizations (FPOs) and cooperatives
Loan Amount and Financial Benefits Under AIF
The AIF scheme provides several financial incentives to beneficiaries. These include:
1. Loan Amount up to Rs 2 Crore
Eligible applicants can get loans up to Rs 2 crore per project. In some cases, FPOs, cooperatives, and state agencies can apply for multiple projects, each eligible for similar benefits.
2. Interest Subvention: 3 Percent Per Year
A major benefit of the scheme is the 3 percent interest subvention available on loans up to Rs 2 crore. This is applicable for a maximum period of 7 years. This reduces financial burden and encourages entrepreneurs to build agri-based infrastructure.
For example:
If the bank interest rate is 10 percent, the borrower will pay only 7 percent.
3. Credit Guarantee Support (CGTMSE)
Loans up to Rs 2 crore will be covered under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises). The beneficiary does not need to pay the guarantee fee. The government bears the cost of credit guarantee coverage, making it easier for farmers and startups to get loans without collateral.
4. Moratorium Period (6 Months to 2 Years)
In agriculture projects, returns may take time. Therefore, lenders provide a moratorium between 6 months to 2 years depending on the project. During this period, the beneficiary does not need to repay the principal amount.
5. Long-Term Repayment Period (Up to 9 Years)
The total loan tenure can go up to 9 years including the moratorium. This reduces the pressure of quick repayment and ensures smooth functioning of the project.
Who Is Eligible for the AIF Scheme?
The Agriculture Infrastructure Fund scheme includes a wide range of beneficiaries from individuals to large organizations.
Eligible Categories
- Individual Farmers
- Farmer Groups
- Farmer Producer Organizations (FPOs)
- Primary Agricultural Credit Societies (PACS)
- Self-Help Groups (SHGs)
- Agricultural Cooperatives
- Agri-Entrepreneurs
- Startups working in agriculture
- Joint Liability Groups (JLGs)
- State Agencies and Government-backed PPP Projects
- Marketing Cooperatives
- Multipurpose Societies
This broad eligibility helps farmers and agriculturists from every scale to access infrastructure credit.
What Types of Projects Are Eligible Under AIF?
The AIF scheme supports a wide variety of agricultural infrastructure projects. These include both post-harvest management structures and community farming assets.
Post-harvest Management Projects
- Warehouses
- Cold storage units
- Pack houses
- Sorting and grading units
- Ripening chambers
- Silos
- Cold chain logistics
- Refrigerated vans
- Ice plants
- Food processing units
- Fruit and vegetable dehydration units
- Milling units (rice mills, flour mills, oil mills)
- Animal feed processing units
Community Farming Assets
- Custom Hiring Centers
- Farm machinery banks
- Solar-powered pumping facilities
- Community irrigation projects
- Polyhouses
- Greenhouses
- Mushroom cultivation units
- Hydroponic and aquaponic systems
- Organic farming units
Innovative Agri-Tech Projects
- Agri-waste processing
- Biofuel production units
- Agri automation systems
- ICT-based agriculture logistics
The scheme supports almost every modern agricultural infrastructure project that can increase productivity and reduce wastage.
Documents Required for AIF Loan Application
To apply under the Agriculture Infrastructure Fund, applicants need to submit the following documents:
- Aadhaar Card
- PAN Card
- Land documents (ownership proof or lease deed)
- Bank account details
- Passport-size photographs
- Business Registration Certificate (for FPOs, cooperatives, startups, SHGs, PACS)
- Detailed Project Report (DPR)
- Quotation for machinery
- Financial statements (if applicable)
- Net worth certificate (for enterprises)
A clear, well-prepared DPR increases the chances of loan approval.
How to Apply for Agriculture Infrastructure Fund Loan Online
The application process for AIF is fully digital, simple, and transparent. Here is the complete step-by-step guide.
Step 1: Visit the Official Portal
Go to: agriinfra.dac.gov.in
(Direct URL will not be displayed here because backlinks are not allowed.)
Step 2: Registration
Choose the applicant category and register using:
- Mobile number
- Aadhaar number
- Basic details
Once registered, you will get login credentials.
Step 3: Prepare the DPR (Project Report)
DPR must include:
- Project objective
- Infrastructure details
- Location and land area
- Estimated cost
- Machinery requirement
- Financial projections
- Repayment plan
- Benefits to farmers
Step 4: Upload Documents
Upload all required documents in the portal.
Step 5: Select Lending Bank
From the list of participating banks:
- Public sector banks
- Private banks
- Cooperative banks
- Regional rural banks
Choose the bank you prefer.
Step 6: Submit the Application
After verifying details, submit the application. The bank will review the DPR, inspect the project site (if required), and then sanction the loan.
Step 7: Loan Approval and Disbursement
Upon approval, the bank releases the amount in stages based on project milestones.
Advantages of Agriculture Infrastructure Fund
1. Reduction in Post-Harvest Losses
With improved storage and processing units, farmers can save up to 40 percent of produce otherwise wasted.
2. Increased Income Opportunities
When farmers can store their produce and sell later during better market conditions, profits rise.
3. Boost to Food Processing Sector
AIF plays a major role in strengthening India’s food processing ecosystem.
4. Improved Rural Employment
Every infrastructure project creates jobs for rural youth.
5. Encouragement to Private Investment
Entrepreneurs and startups find it easier to invest in agriculture due to low-interest loans and credit guarantee.
6. Creation of Modern Farming Infrastructure
India’s agriculture sector moves toward global standards.
Challenges Faced by Beneficiaries
Despite being a highly beneficial scheme, some challenges exist:
- Lack of awareness among small farmers
- Issues in preparing professional DPRs
- Document verification delays
- Land title disputes
- Difficulty in arranging project margin money
To overcome these issues, many states have begun capacity-building initiatives and providing DPR preparation support to beneficiaries.
Impact of AIF on Indian Agriculture
Since its launch, the Agriculture Infrastructure Fund has financed thousands of projects across India. These include cold storages, rural godowns, processing units, and custom hiring centers.
Key outcomes include:
- Improved value chain efficiency
- Better price realization for farmers
- Growth in agri startups
- Expansion of agri logistics and cold chain industry
- Stronger cooperative institutions
- Enhanced export potential
AIF has become one of the core pillars of the government’s long-term vision for doubling farmers’ income.
How to apply
1. Visit the portal: CLICK HEAR
2. Register using your mobile and Aadhaar number.
Required Documents
The Agriculture Infrastructure Fund is a transformative scheme designed to strengthen the backbone of India’s agricultural economy. Through subsidized loans, credit guarantee support, and long-term financing options, it empowers farmers, FPOs, cooperatives, and agri-entrepreneurs to build world-class infrastructure. Whether it is storage facilities, cold chains, food processing units, or advanced farming systems, the AIF scheme helps minimize losses, increase incomes, and enhance productivity across the agricultural sector.
Beneficiaries willing to modernize their farm operations or set up value-added units should make full use of this scheme. With its comprehensive financial support and simplified online application process, the Agriculture Infrastructure Fund remains one of India’s most important agricultural development programs.