Agriculture Infrastructure Fund (AIF) Scheme

Overview:

Central Sector Scheme: Launched in 2020

Objective: Provides medium- to long-term debt financing for post-harvest management infrastructure and community farming assets.

Duration: FY2020 to FY2032 (10 years)

Eligibility:

• Primary Agricultural Credit Societies (PACS)
• Marketing Cooperative Societies
• Farmer Producers Organizations (FPOs)
• Farmers
• Self Help Groups (SHGs)
• Joint Liability Groups (JLGs)
• Multipurpose Cooperative Societies
• Agri-entrepreneurs and Startups
• Public-Private Partnership Projects

Exclusions:

Public Sector Undertakings (PSUs) are not directly eligible, but projects sponsored by PSUs under PPP are eligible.

Lending Institutions:

• Scheduled commercial banks
• Scheduled cooperative banks
• Regional Rural Banks (RRBs)
• Small Finance Banks
• Non-Banking Financial Companies (NBFCs)
• National Cooperative Development Corporation (NCDC)

Refinance Support:

NABARD will provide refinance support to eligible lending entities.

Features:

• Interest Subvention: 3% per annum for loans up to ₹2 crore for a maximum of 7 years.
• Project Limit: An applicant can put up to 25 projects with a maximum loan of ₹2 crore each.
• Multiple Projects: Multiple projects in one location are eligible with an overall cap of ₹2 crore.
• Borrower Contribution: Borrowers must contribute at least 10% of the total project cost.
• Moratorium Period: Minimum 6 months and maximum 2 years.
• SC/ST Entrepreneurs: 24% of grants-in-aid must be utilized for SC/ST entrepreneurs.
• Women and Weaker Sections: Lending institutions should prioritize loans to these groups.
• Credit Guarantee: Credit guarantee coverage is available under CGTMSE for loans up to ₹2 crore, with the government paying the fee.