Agriculture Infrastructure Fund

Scheme Introduction: A Brief Overview

Building a warehouse, cold storage, processing unit or other agricultural infrastructure can require substantial investment, especially when farmers and agri-based enterprises are trying to improve storage, processing and market access. The Agriculture Infrastructure Fund (AIF) addresses this financing gap by providing medium- to long-term debt support for eligible post-harvest management infrastructure and viable community farming assets. Under the scheme, eligible borrowers can receive a 3% annual interest subvention on loans up to ₹2 crore for a maximum of 7 years, along with eligible credit guarantee support. The original financing facility was ₹1 lakh crore, and the Government increased the AIF loan target to ₹2 lakh crore in 2026.

The scheme was launched in 2020 as a Central Sector Scheme and is implemented by the Department of Agriculture & Farmers Welfare (DA&FW) under the Ministry of Agriculture & Farmers Welfare. AIF is designed to encourage investment in infrastructure that can reduce post-harvest losses, improve the handling and value realization of agricultural produce, strengthen agricultural value chains and support rural employment. Eligible applicants include farmers, Farmer Producer Organizations (FPOs), Primary Agricultural Credit Societies (PACS), cooperatives, Self-Help Groups (SHGs), Joint Liability Groups (JLGs), agri-entrepreneurs, startups, APMCs, state agencies and other eligible entities.

The financial support under AIF is provided through interest subvention and credit guarantee support rather than a direct capital subsidy. Eligible loans up to ₹2 crore can receive a 3% annual interest subvention, while the applicable lending rate is capped at 9%. Eligible borrowers can also receive credit guarantee coverage for loans up to ₹2 crore under the applicable framework, with the Government bearing the applicable guarantee fee. The scheme does not provide working-capital loans, and the minimum owner's contribution is 10% of the fixed project cost.

AIF covers a wide range of agricultural infrastructure, including warehouses, silos, cold storage and cold-chain facilities, sorting and grading units, packaging facilities, logistics infrastructure, ripening chambers, primary processing units, Custom Hiring Centres and smart and precision agriculture projects. Following the 2024 expansion, integrated primary and secondary processing projects can also be covered, while standalone secondary processing remains outside the scope of AIF. The scheme also allows eligible projects to converge with applicable Central and State Government schemes, subject to their respective guidelines.

Eligible applicants can apply online through the official Agriculture Infrastructure Fund portal. The applicant registers on the portal, submits the project details and Detailed Project Report (DPR), and selects a lending institution. After verification by the Central Project Management Unit, the application is forwarded to the selected lending institution for appraisal and sanction. The AIF FAQ states that, if the process proceeds smoothly, loan sanction should not take more than 60 days.

Those exploring related support for agricultural value chains can also read the PMFME Scheme, which focuses on support for micro food-processing enterprises, and the PM Kisan Sampada Yojana, which covers infrastructure and processing support across the food-processing sector. Both can be useful for readers looking at options beyond AIF.

Scheme Benefits

The Agriculture Infrastructure Fund (AIF) provides affordable financing support for eligible agricultural infrastructure projects. The main benefits available to eligible borrowers are:

• Eligible borrowers can get a 3% annual interest subvention on loans up to ₹2 crore for a maximum period of 7 years.
• The lending rate for eligible AIF loans is capped at 9%.
• Eligible loans up to ₹2 crore can receive credit guarantee coverage under the applicable AIF framework, with the Government bearing the applicable guarantee fee.
• Eligible loans up to ₹2 crore can generally be covered without collateral under the applicable credit guarantee framework.
• Loans under AIF can have a repayment period of up to 7 years, including a moratorium of 6 months to 2 years, as applicable.
• The scheme supports investment in warehouses, silos, cold storage, cold chains, sorting and grading units, packaging facilities, logistics and primary processing infrastructure.
• Eligible applicants can also finance Custom Hiring Centres and smart and precision agriculture infrastructure, including eligible drones, sensors, IoT and related technologies.
• Integrated projects involving primary and secondary processing can be covered under the expanded AIF framework. Standalone secondary processing projects are not eligible.
• AIF allows eligible projects to avail convergence with applicable Central and State Government schemes, subject to the guidelines of those schemes.
• Most eligible applicants can take AIF support for up to 25 projects located in different locations with distinct LGD codes, subject to the applicable guidelines and exemptions.
• The scheme does not provide a direct capital or margin-money subsidy. Its main financial support comes through interest subvention and credit guarantee support.

Under AIF, the ₹2 crore figure refers to the limit up to which interest subvention and applicable credit guarantee support are available. A borrower may obtain a higher loan amount if approved by the lending institution, but AIF benefits remain subject to the applicable ₹2 crore limit.

Eligible Projects Under Agriculture Infrastructure Fund

Agriculture Infrastructure Fund supports projects that improve agricultural storage, processing, handling, logistics and farm infrastructure. Major eligible projects include:

Note: Standalone secondary processing is not eligible. It can be covered when integrated with eligible primary processing.

Loan and Interest Subvention Under Agriculture Infrastructure Fund

Agriculture Infrastructure Fund reduces the cost of eligible loans through interest subvention and credit guarantee support.

The ₹2 crore limit applies to the main Agriculture Infrastructure Fund interest-subvention and credit-guarantee benefits. A lender may approve a higher loan, but AIF benefits remain limited to the applicable ceiling.

What Is Not Covered Under Agriculture Infrastructure Fund

• Working-capital loans
• Standalone secondary processing projects
• Direct capital subsidy from AIF
• Separate margin-money subsidy from AIF

Eligible projects may use other Central or State Government subsidies where convergence is allowed.

AIF Project Limit: How Many Projects Can You Set Up?

AIF allows multiple projects, subject to project-location rules.

• Private-sector eligible entities: Up to 25 eligible projects in different locations.
• Project location: Each location must have a distinct LGD code.
• Specified institutions and federations: The 25-project limit does not apply to specified State agencies, cooperative federations, FPO federations, SHG federations and other eligible categories covered by the guidelines.
• APMCs: Special rules apply to different eligible infrastructure within the same market yard.

Applicants should also check the applicable financing and interest-subvention limits before applying for multiple projects.

Eligibility Requirements

Agriculture Infrastructure Fund support is available to individuals, farmer groups, institutions and eligible organisations that want to develop agricultural infrastructure or viable community farming assets. Applicants must fall under an eligible category and meet the project and lending requirements under the scheme.

• Farmers can apply for eligible agricultural infrastructure projects.
• Farmer Producer Organisations (FPOs) and FPO federations are eligible.
• Primary Agricultural Credit Societies (PACS), marketing cooperatives and multipurpose cooperative societies can apply.
• Self-Help Groups (SHGs), SHG federations and Joint Liability Groups (JLGs) are eligible.
• Agri-entrepreneurs and eligible startups can apply for projects covered under AIF.
• Agricultural Produce Market Committees (APMCs) are eligible for financing of permitted infrastructure projects.
• National and State-level cooperative federations can avail support for eligible projects.
• State agencies and eligible Central, State or local body-sponsored Public-Private Partnership (PPP) projects can apply.
• Public Sector Undertakings (PSUs) are not directly eligible, but eligible PPP projects sponsored by them can be covered under AIF.
• The proposed project must fall within the eligible infrastructure or community farming activities covered under the AIF guidelines.
• The applicant must meet the lending institution's applicable credit, financial and project-viability requirements.
• The applicant must contribute at least 10% of the fixed project cost from their own sources, as required under the AIF framework.
• Working-capital requirements are not eligible for financing under AIF.

Required Documents

Applicants need to provide basic identity, financial and project-related documents while applying for Agriculture Infrastructure Fund (AIF). The exact documents may vary depending on the applicant category, project and requirements of the lending institution.

• Aadhaar card or other valid identity proof
• Address proof
• Recent passport-size photographs, if required
• Bank account details and recent bank statements
• Land ownership, lease or other project-site documents, wherever applicable
• Registration or incorporation documents for FPOs, cooperatives, SHGs, companies and other eligible organisations, as applicable
• Detailed Project Report (DPR) containing details of the proposed activity, project cost and financing plan
• Project cost estimates, machinery details and quotations, wherever applicable
• Income Tax Returns, balance sheets or other financial statements, where applicable
• GST registration and related documents, if applicable
• Any additional KYC, financial or project-related documents required by the lending institution

Steps to Apply

The Agriculture Infrastructure Fund application process is completely online. Before starting, keep your basic KYC details and project information ready, especially the Detailed Project Report (DPR), as it is required during the application.

• Open the Agriculture Infrastructure Fund (AIF) portal and select the "Register as Beneficiary" option available under the Beneficiary Corner.
• Enter your mobile number and Aadhaar number to complete the registration through OTP verification. After successful registration, the portal generates your beneficiary login credentials.
• Use the login details to access the beneficiary section and start a new AIF loan application. Enter the applicant, project and financing details asked for in the online application form.
• Prepare and upload the Detailed Project Report (DPR). It should explain the proposed activity, project cost, means of finance, expected revenue, machinery and other important project details. Model DPRs are also available in the Resources section of the AIF portal.
• Select an eligible lending institution available on the portal according to your project and financing requirement. The submitted application is first verified by the Central Project Management Unit (PMU) of the Ministry.
• Once the application is verified, it is automatically forwarded to the lending institution selected by you. You will also receive an SMS after verification.
• Contact the selected bank or lending institution after verification and complete the required loan formalities. The lender will assess the project's viability and decide whether to sanction or reject the loan according to its lending policy.
• After the loan is sanctioned and disbursed, the lending institution claims the eligible interest subvention and credit guarantee fee from the Government. The approved benefit is subsequently credited to the borrower's loan account.
• If the application shows "pending information", check the remarks provided by the PMU, make the required corrections in the application or DPR and resubmit it.
• If an application has been verified but the selected bank does not take action, the AIF portal provides an option to change the bank after 75 days.

The AIF FAQ states that, when the process proceeds smoothly, loan sanction should not take more than 60 days. Applicants can also use the English and Hindi application-process tutorials available under the Resources section of the official portal for step-by-step guidance.

Relevant Links

• Official Website of Department of Agriculture & Farmers Welfare
• Agriculture Infrastructure Fund (AIF) Portal
• Agriculture Infrastructure Fund Guidelines
• Agriculture Infrastructure Fund Frequently Asked Questions
• Agriculture Infrastructure Fund Eligible Projects
• Agriculture Infrastructure Fund Model DPRs and Templates
• Agriculture Infrastructure Fund Document Checklists
• Who Can Apply for Agriculture Infrastructure Fund
• Agriculture Infrastructure Fund Application Process Tutorials

Contact Information

For application-related problems, beneficiary-detail corrections or other AIF portal support, applicants can use the official support email provided on the AIF portal. The portal specifically directs applicants to @email for requests such as correcting submitted beneficiary details.

For departmental correspondence, the official AIF portal lists the Department of Agriculture & Farmers Welfare at Krishi Bhawan, New Delhi.

Department of Agriculture & Farmers Welfare

• Phone: Use the AIF helpline number displayed on the official portal for applicant or bank-official support.
• Email:[email protected]
• Address: Krishi Bhawan, New Delhi – 110001

For bank-related issues, applicants should first contact the lending institution selected through the AIF portal. The AIF FAQ also advises applicants to use the helpline or email provided on the portal if a bank is not aware of the scheme or if the preferred bank branch is not available.