What is the AIF Scheme?
Reduce Post-Harvest Loss
Builds farm-gate storage, cold chain and processing capacity so produce doesn't rot before it reaches the market.
Better Price Realisation
Enables farmers to hold stock and sell when prices are favourable, instead of distress-selling at harvest time.
Attract Private Investment
Interest subvention + credit guarantee de-risk lending, drawing private capital into rural infrastructure.
Key Financial Features at a Glance
| Parameter | Details |
|---|---|
| Nature of Facility | Term loan for post-harvest management infrastructure and community/viable farming assets |
| Interest Subvention | 3% p.a. on loans up to ₹2 crore per project, for a maximum of 7 years (including moratorium). For PACS availing NABARD refinance, effective subvention can bring cost down further. |
| Interest Rate Cap | Capped at 9% p.a. for loans up to ₹2 crore; loans above ₹2 crore priced per bank's normal guidelines (subvention restricted to first ₹2 crore). |
| Credit Guarantee | CGTMSE cover for MSME-registered units up to ₹2 crore; FPOs may instead avail cover via NABSanrakshan / NABARD FPO Promotion Scheme. Guarantee fee borne by Government of India. |
| Margin / Own Contribution | Minimum 10% of project cost for loans up to ₹2 crore; 25% of project cost for loans above ₹2 crore. |
| Moratorium | Minimum 6 months, maximum 2 years from date of disbursement (project-dependent); interest payable during moratorium. |
| Repayment Tenure | Maximum 7 years overall (incl. moratorium), aligned to project cash flows. |
| Collateral | Primary security is hypothecation/mortgage of assets created from the loan. Additional collateral required only above CGTMSE-covered limits (typically 30–35% of exposure). |
| No. of Projects per Applicant | Up to 25 projects (different locations/LGD codes) per individual applicant; no cap for state agencies, national/state federations of cooperatives, FPOs and SHGs. |
| Convergence | Can be combined with other central/state capital subsidy schemes (e.g., PM-KUSUM Component A, SMAM, PMKSY-PDMC, FPO equity grant) as they apply to different cost components. |
| Scheme Window | Operational 2020-21 to 2032-33; fresh disbursement window through FY 2025-26 (verify current cut-off with lending bank as extensions are notified periodically). |
Who Can Apply — Eligible Beneficiaries
Individual Farmers & Agripreneurs
Individual farmers, agri-entrepreneurs, and start-ups engaged in agri-value-chain activities.
FPOs / FPCs & PACS
Farmer Producer Organisations, Farmer Producer Companies and Primary Agricultural Credit Societies.
SHGs, Cooperatives & Federations
Self-Help Groups, cooperative societies and their state/national federations (no 25-project cap for federations).
APMCs & State Agencies
Agricultural Produce Market Committees and state government agencies / bodies.
Section 8 Companies & JLGs
Not-for-profit agri companies and Joint Liability Groups undertaking eligible infrastructure projects.
PPP Projects
Public-Private Partnership projects sponsored by central/state governments or their agencies at APMC/collection points.
Eligible Infrastructure & Assets
Not eligible:
How to Apply — Step-by-Step Process
Register on AIF Portal
agriinfra.dac.gov.in — sign up with mobile number & Aadhaar to generate OTP-based login.
Submit Application + DPR
Fill the online form and upload a Detailed Project Report (DPR) with project cost & cash-flow viability.
Central PMU Verification
Application verified centrally, then auto-routed to the lending institution selected by the applicant.
Bank Appraisal & Sanction
Bank appraises project viability and sanctions the loan — typically within ~60 days if in order.
Disbursement & Subvention Credit
Post disbursement, bank claims subvention/guarantee fee from GoI, which is credited to the loan account.
Convergence with Other Schemes
Term Loan
Equity
FPO Equity Grant & Credit Guarantee
Matching equity grant up to ₹15 lakh per FPO under the Central Sector Scheme for 10,000 FPOs; can be paired with AIF term loan for infrastructure.
KUSUM
PM-KUSUM — Component A
Farmers, FPOs, cooperatives & Panchayats can set up solar plants on barren/agri land; convergence with AIF supports allied infrastructure at the same site.
CHC
SMAM — Custom Hiring Centre Subsidy
Capital subsidy (25–80% depending on category) for setting up Custom Hiring Centres and Farm Machinery Banks, alongside an AIF-funded CHC building/storage shed.
PDMC
PMKSY — Per Drop More Crop
Subsidy on micro-irrigation systems (up to 55% for small/marginal farmers) to complement AIF-funded farm assets and post-harvest infrastructure on the same land.
PMKSY
MoFPI — Food Processing Schemes
Where AIF funds integrated primary + secondary processing, standalone secondary processing components can separately draw MoFPI's PM Formalisation of Micro Food Processing Enterprises (PMFME) / PMKSY support.
Schemes
State Government Capital Subsidy Schemes
Several states run their own agri-infra capital subsidy or interest subvention schemes that can be layered on top of AIF, subject to state guidelines.
Illustrative Example
Setting up a 500 MT Cold Storage Unit — FPO-led Project
Illustrative only, and subject to the lender's own appraisal. Collateral relief from CGTMSE/NABSanrakshan cover is often the bigger practical barrier for a young FPO with limited hard assets to pledge.
Will Require Professional Help For:
- 1Detailed Project Report (DPR): Project cost estimation, means of finance, revenue & cash-flow viability need to be bank-ready.
- 2Entity structuring: Choosing between FPO/FPC, PACS, cooperative or MSME/Udyam registration affects CGTMSE eligibility and benefits.
- 3Portal & documentation: AIF portal application, subvention and credit-guarantee paperwork require accuracy to avoid rejection.
- 4Scheme convergence: Layering AIF with PM-KUSUM, SMAM, PMKSY-PDMC or FPO equity grants needs careful cost-component mapping.
- 5Post-sanction compliance: Moratorium tracking, repayment scheduling, and statutory/ROC compliance of the borrowing entity.
Scheme terms, interest subvention rates, guarantee coverage and disbursement windows are subject to periodic revision by the Department of Agriculture & Farmers Welfare and participating lenders — always verify the current terms on agriinfra.dac.gov.in or with your bank before applying. This article is for general awareness and is not investment, credit or legal advice.