AIF · Ministry of Agriculture & Farmers Welfare
Agriculture Infrastructure Fund (National Agriculture Infra Financing Facility)
Medium and long-term debt financing for post-harvest management infrastructure and community farming assets, with a 3% interest subvention and credit guarantee support.
- Subvention
- 3% p.a.
- Subvention cap
- ₹2 Cr per project
- Period
- Up to 7 years
Key features
What the scheme actually provides
- Interest subvention of 3% per annum on loans up to ₹2 crore per project, for a period of up to seven years
- Credit guarantee coverage available for eligible projects through CGTMSE, with the fee paid by the government
- Eligible assets include warehouses, cold chain, grading and sorting units, primary processing, ripening chambers and logistics facilities
- Multiple projects at different locations are permitted, subject to scheme limits
- Open to farmers, FPOs, PACS, entrepreneurs, startups and agri-tech players
Who is eligible
- Post-harvest management infrastructure or viable community farming asset
- Eligible borrower category under the scheme guidelines
- Project appraised and financed by a participating lending institution
- Land and statutory clearances in place for the proposed location
Benefits
- Lowers the effective cost of a capital-intensive agri asset materially
- Long tenure suited to infrastructure repayment profiles
- Combines with state agri and food processing incentives in many cases
Where we come in
How FIN.SWITCH handles a Agriculture Infrastructure Fund file
- 01
Map the project to an eligible activity head rather than assuming it fits
- 02
Prepare a DPR in the format the lending institution and the portal expect
- 03
Model the subvention correctly — it reduces interest cost, it is not a grant
- 04
Coordinate the portal application and the bank appraisal in parallel
Questions
Agriculture Infrastructure Fund, answered plainly
It is applied against the interest on the eligible portion of the loan, subject to the cap and period. It reduces your interest outgo; it does not arrive as a cash grant.
Individual entrepreneurs, companies, startups and FPOs are all covered, provided the asset falls within the eligible categories.
Compare
Other schemes worth looking at
PM FME Scheme
Credit-linked capital subsidy of 35% of eligible project cost, capped at ₹10 lakh per unit, for individual micro food processing enterprises — plus support for groups and branding.
- Subsidy
- 35% of project cost
- Cap
- ₹10 L per unit
- Contribution
- Min 10%
AHIDF
Interest subvention and credit guarantee support for investment in dairy and meat processing, animal feed plants, breed improvement and animal waste management infrastructure.
- Subvention
- 3% p.a.
- Repayment
- Up to 10 years
- Moratorium
- Up to 2 years
Not sure whether Agriculture Infrastructure Fund fits your business?
The eligibility check takes two minutes and gives you an indicative shortlist across every scheme we file under.