What is the Agriculture Infrastructure Fund (AIF)?

The Agriculture Infrastructure Fund is a central-sector financing facility launched by the Government of India on 9 August 2020 under the Aatmanirbhar Bharat Abhiyan to provide medium- and long-term debt for investment in post-harvest management and community farming-asset infrastructure. The Cabinet-approved corpus is ₹1 lakh crore to be disbursed by lending institutions through 2025–26, with interest subvention and credit guarantee support payable up to 2032–33. The scheme is administered by the Department of Agriculture & Farmers Welfare (DA&FW) through the AIF online management information system at agriinfra.dac.gov.in.

Who is eligible to borrow under the AIF?

AIF loans are available to a wide range of agricultural-infrastructure investors: individual farmers, groups of farmers, Primary Agricultural Credit Societies (PACS), Farmer Producer Organisations (FPOs), Self Help Groups (SHGs), Joint Liability Groups (JLGs), marketing co-operative societies, agri-entrepreneurs, start-ups, state agencies / agencies sponsored by the central or state government, public-private partnership projects sponsored by state government / Local Bodies, APMCs, and federations of FPOs / SHGs. Composite projects sponsored by Agricultural Produce Market Committees (APMCs) and APEDA-recognised agri-export entities are also eligible.

How much interest subvention does a borrower receive under AIF?

All AIF loans up to a sanctioned limit of ₹2 crore per project carry a 3% per annum interest subvention from the central government, paid for a maximum of seven years from the date of first disbursement. The subvention is over and above any state interest subvention or sector-specific subsidy the project is eligible for, and it is applied directly to the borrower's interest demand in the loan account. Loans above ₹2 crore are also eligible under the scheme but the 3% subvention is restricted to the first ₹2 crore of principal outstanding.

Is there a credit guarantee for AIF loans?

Yes. The Government of India bears the credit guarantee fee under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for eligible loans up to ₹2 crore, removing the need for collateral for small borrowers in many cases. For FPO projects, a parallel credit guarantee from the NABARD-backed FPO scheme is available, again up to a project limit notified by NABARD. Lenders can stack either CGTMSE or the FPO-credit-guarantee cover with the AIF 3% interest subvention.

What kinds of projects can be financed under AIF?

AIF finances two broad project categories. Post-harvest management infrastructure includes supply-chain warehouses, silos, pack-houses, ripening chambers, sorting and grading units, cold-chain assets, primary processing centres, e-marketing platforms and logistics infrastructure. Community-farming assets include organic and bio-stimulant input units, hydroponics, vertical farming, mushroom-cultivation units, custom hiring centres for farm machinery, smart-precision-agriculture equipment, agri-drones for SHGs / FPOs, and infrastructure for nursery and seed production. Composite multi-component projects sponsored by APMCs are also explicitly eligible.

Where can I apply for an AIF loan?

Applications are filed online on the AIF portal at agriinfra.dac.gov.in. The portal hosts a directory of around 150 participating lending institutions — scheduled commercial banks (public, private and small-finance), regional rural banks (RRBs), co-operative banks and select non-banking financial companies (NBFCs) — and a project-cost calculator. The applicant uploads a project report, KYC, land documents and quotations; the State Level Sanctioning Committee and the participating bank then carry out due diligence and sanction the loan in accordance with the scheme guidelines.

Can AIF be used along with other Government of India schemes?

Yes — AIF is explicitly designed to converge with sector schemes. Borrowers can stack AIF with PMKSY-PDMC (Per Drop More Crop) for micro-irrigation infrastructure, SMAM for farm-machinery custom hiring centres, the Mission for Integrated Development of Horticulture (MIDH), the 10,000 FPO formation and promotion scheme, the operational expenses of PMFME for micro food processing, and the Namo Drone Didi scheme (where the balance 20% drone cost not covered by the central subsidy can be funded by AIF). Each scheme retains its own subsidy ceiling and the AIF subvention runs on top of it.

What is the moratorium and repayment tenure under AIF?

AIF loans carry a moratorium on principal repayment of between six months and a maximum of two years from the date of first disbursement, after which the principal repayment commences. The maximum tenure of the loan is fourteen years inclusive of the moratorium. Banks set the actual moratorium length, drawdown schedule and repayment frequency based on the project's cash-flow assessment and the underlying credit appraisal as per RBI norms.

Has AIF been extended after 2025–26?

The original scheme window for fresh disbursements runs through 2025–26 and the interest subvention plus credit guarantee window runs through 2032–33. The Union Cabinet has expanded the eligibility list twice since launch (notably to include community-farming assets in August 2024) and the Government has indicated continued expansion of eligible end-uses in line with the Lakhpati Didi and FPO promotion priorities. Applicants should check the AIF portal at agriinfra.dac.gov.in for the latest list of eligible projects, sanctioned-state cumulative disbursement and notified amendments before applying.

Agriculture Infrastructure Fund (AIF) — ₹1 Lakh Crore Scheme: 3% Interest Subvention, ₹2 Crore Loan Cap & Eligible Projects

The Agriculture Infrastructure Fund (AIF)is the Government of India's flagship medium- and long-term financing facility for post-harvest management infrastructure and community-farming assets. Launched on 9 August 2020 under the Aatmanirbhar Bharat Abhiyan with a corpus of ₹1 lakh crore, the fund offers a 3% interest subvention on loans up to ₹2 crore for seven years and a CGTMSE-backed credit guarantee, making it the single most-used capital window for warehouses, cold chains, primary processing units, custom hiring centres and SHG-run drones in rural India. For the broader scheme portfolio see our India government schemes for farmers reference page.

What is the Agriculture Infrastructure Fund?

The AIF was approved by the Union Cabinet on 8 July 2020 and formally launched by Prime Minister Narendra Modi on 9 August 2020. It is implemented by the Department of Agriculture & Farmers Welfare (DA&FW), Ministry of Agriculture & Farmers Welfare, through the online AIF Management Information System that connects applicants with around 150 empanelled lending institutions and the State Level Sanctioning Committees (SLSCs). The fresh-disbursement window runs to 2025–26, while the 3% interest subvention and the credit guarantee remain available on disbursed loans until 2032–33.

Key features at a glance

Corpus: ₹1,00,000 crore (₹1 lakh crore) for fresh sanctions by participating lenders.
Interest subvention: 3% per annum on the principal outstanding up to ₹2 crore per project, paid for a maximum of 7 years from the first disbursement.
Credit guarantee: CGTMSE coverage on eligible loans up to ₹2 crore (fee borne by the Government); FPO-credit guarantee available for FPO-led projects.
Moratorium: 6 months to a maximum of 2 years on principal repayment.
Tenure: up to 14 years inclusive of moratorium.
Convergence: can be stacked with subsidies under PMKSY-PDMC, SMAM, MIDH, the 10,000 FPO scheme, PMFME and Namo Drone Didi.
Apply: online at agriinfra.dac.gov.in.

Who is eligible?

AIF is one of the widest-eligibility infrastructure schemes the Government of India operates. As per the operational guidelines, the following entities can apply:

Primary Agricultural Credit Societies (PACS), marketing co-operative societies and federations of such societies.
Farmer Producer Organisations (FPOs) and federations of FPOs registered as producer companies or co-operatives.
Self Help Groups (SHGs) and federations of SHGs under DAY-NRLM or a state rural livelihood mission, including women-SHGs aligned with Namo Drone Didi.
Joint Liability Groups (JLGs) of farmers.
Individual farmers, groups of farmers and agri-entrepreneurs, including agriculture-graduate startups.
Agricultural Produce Market Committees (APMCs) and entities sponsored by APMCs for composite, multi-component mandi-side infrastructure.
State agencies, public-private partnership projects sponsored by central / state Government or Local Bodies, and APEDA-recognised agri-export entities.

Eligible projects

The fund is project-led, with two broad categories of eligible end-use approved by DA&FW after the August 2024 Cabinet expansion:

1. Post-harvest management infrastructure

Supply-chain assets: warehouses, silos, pack- houses, ripening chambers, controlled-atmosphere storage, sorting, grading and assaying units, ripening chambers and cold-chain logistics (reefer vans, refrigerated containers).
Primary processing centres: dal mills, atta chakkis, oilseed expellers, paddy parboiling and milling units, cleaning-grading-grading lines for cereals and pulses.
e-marketing infrastructure: assets that integrate with e-NAM mandi platforms, FPO point-of-sale infrastructure and last-mile logistics for digital mandis.
Logistics and transport: truck-fleets dedicated to agri-cargo, dispatch centres and warehouse-linked transport infrastructure.

2. Community-farming assets

Custom hiring centres (CHCs) for farm machinery including tractors, harvesters, planters, balers and drones; this is one of the most-funded project categories under AIF.
Smart and precision-agriculture infrastructure: sensor-driven irrigation control, IoT field stations, drone airframes for SHGs / FPOs, mapping and pest-scouting platforms.
Organic and bio-stimulant input units aligned with our PKVY organic farming guide for cluster-level vermicompost, biofertiliser and PGS-India input production.
Hydroponics, vertical farming and mushroom-cultivation units, including high-value urban-fringe horticulture.
Seed and nursery infrastructure, seed-processing plants and tissue-culture labs, generally in convergence with the MIDH and the National Seed Mission.

How the 3% interest subvention works

The interest subvention is the most important plain-English incentive in the scheme:

The participating bank sanctions the loan at its applicable interest rate (typically MCLR + spread).
On the first ₹2 crore of principal outstanding, the central government pays a 3% per annum subvention directly to the bank.
The bank reduces the borrower's interest demand by the same 3%, so the effective borrowing cost on the first ₹2 crore is the bank rate minus 3% for the subvention period.
The subvention is paid for a maximum of seven years from the first disbursement, even if the loan tenure runs longer.

For an FPO or SHG borrower, the AIF subvention can be stacked with the FPO scheme's equity grant, the SMAM CHC subsidy or the PMKSY-PDMC drip / sprinkler subsidy, since each scheme operates on a different component of the project cost.

Credit guarantee — CGTMSE and FPO cover

Two parallel credit-guarantee tracks support AIF lending:

CGTMSE — Credit Guarantee Fund Trust for Micro and Small Enterprises. The Government bears the guarantee fee for eligible AIF loans up to ₹2 crore, which lets banks lend without collateral for many small borrowers.
FPO Credit Guarantee — managed by NABARD under the Central Sector Scheme for Formation and Promotion of 10,000 FPOs. FPO-led AIF projects can avail the FPO credit guarantee in place of CGTMSE, often at higher coverage limits.

The choice of guarantee track is made by the participating bank in consultation with the borrower at the loan-appraisal stage, based on the legal form of the applicant and the project ticket size.

How AIF converges with other schemes

AIF is built as a credit-line stack, not a stand-alone subsidy pool. Common convergence patterns include:

Namo Drone Didi— the balance 20% drone-package cost after the 80% central subsidy can be financed by an AIF loan, with the 3% subvention applied to keep the SHG's effective interest cost in low single digits.
PMKSY — Per Drop More Crop — drip / sprinkler subsidy at the field level converges with AIF financing for the upstream filtration, pumping and storage infrastructure on the same farm.
PMFME — micro food processing units can use the PMFME 35% credit-linked back-end subsidy on the project component and AIF for the broader fixed-asset loan.
Kisan Credit Card — short-term KCC limits handle the working capital, while AIF takes care of the fixed-asset term loan; the two run alongside on the same farm account.
e-NAM — warehousing, assaying and grading infrastructure financed through AIF connects directly into the e-NAM digital mandi pipeline through eNWR-backed trades.

How to apply

Visit agriinfra.dac.gov.in and register as a beneficiary, providing PAN, Aadhaar and the entity's legal-form documents (society / FPO / SHG / company registration).
Upload a project report with a detailed cost estimate, cash-flow projections and supplier quotations for the proposed asset.
Select a participating lending institution from the in-portal directory of around 150 banks and NBFCs and a preferred branch.
The portal routes the proposal to the bank's loan officer and the relevant State Level Sanctioning Committee (SLSC) for due diligence, project-cost verification and scheme-eligibility certification.
On sanction, the bank disburses the loan against scheme milestones; the 3% interest subvention claim is filed by the bank on the AIF portal on a quarterly basis.

Common pitfalls and how to avoid them

Treating AIF as a subsidy. AIF is a loan with an interest subvention; the principal must be repaid. Build the cash-flow plan around the moratorium and full repayment, not around grant-like terms.
Skipping convergence. Borrowers often forget to stack PMFME, MIDH or PMKSY-PDMC subsidies on top of AIF financing. Engage the local KVK or FPO mentor at the project- report stage to maximise the convergence benefit.
Under-sizing the project for the ₹2 crore subvention cap. The subvention runs up to ₹2 crore of principal — structure the project ticket size so that the most interest-cost sensitive component is within this band.
Ignoring the CGTMSE option. If the project has limited collateral, ask the bank to route the loan through the CGTMSE-backed AIF window instead of asking for a personal guarantee.
Late subvention claim by the bank. Banks file quarterly subvention claims on the AIF portal — borrowers should cross-check that the 3% benefit is being applied on the statement of account from the very first interest charge.

Where to read more

agriinfra.dac.gov.in — AIF Management Information System, eligibility, lender directory and project-cost calculator.
agriwelfare.gov.in — DA&FW website, AIF operational guidelines and Cabinet decisions.
Press Information Bureau (PIB) — Cabinet approval (8 July 2020), launch (9 August 2020) and subsequent expansion press releases.
nabard.org — refinance support to participating banks and the FPO credit- guarantee scheme run alongside AIF.
cgtmse.in — Credit Guarantee Fund Trust for Micro and Small Enterprises, which underwrites collateral-free AIF loans up to ₹2 crore.

Frequently asked questions

What is the Agriculture Infrastructure Fund (AIF)?: The Agriculture Infrastructure Fund is a central-sector financing facility launched by the Government of India on 9 August 2020 under the Aatmanirbhar Bharat Abhiyan to provide medium- and long-term debt for investment in post-harvest management and community farming-asset infrastructure. The Cabinet-approved corpus is ₹1 lakh crore to be disbursed by lending institutions through 2025–26, with interest subvention and credit guarantee support payable up to 2032–33. The scheme is administered by the Department of Agriculture & Farmers Welfare (DA&FW) through the AIF online management information system at agriinfra.dac.gov.in.
Who is eligible to borrow under the AIF?: AIF loans are available to a wide range of agricultural-infrastructure investors: individual farmers, groups of farmers, Primary Agricultural Credit Societies (PACS), Farmer Producer Organisations (FPOs), Self Help Groups (SHGs), Joint Liability Groups (JLGs), marketing co-operative societies, agri-entrepreneurs, start-ups, state agencies / agencies sponsored by the central or state government, public-private partnership projects sponsored by state government / Local Bodies, APMCs, and federations of FPOs / SHGs. Composite projects sponsored by Agricultural Produce Market Committees (APMCs) and APEDA-recognised agri-export entities are also eligible.
How much interest subvention does a borrower receive under AIF?: All AIF loans up to a sanctioned limit of ₹2 crore per project carry a 3% per annum interest subvention from the central government, paid for a maximum of seven years from the date of first disbursement. The subvention is over and above any state interest subvention or sector-specific subsidy the project is eligible for, and it is applied directly to the borrower's interest demand in the loan account. Loans above ₹2 crore are also eligible under the scheme but the 3% subvention is restricted to the first ₹2 crore of principal outstanding.
Is there a credit guarantee for AIF loans?: Yes. The Government of India bears the credit guarantee fee under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for eligible loans up to ₹2 crore, removing the need for collateral for small borrowers in many cases. For FPO projects, a parallel credit guarantee from the NABARD-backed FPO scheme is available, again up to a project limit notified by NABARD. Lenders can stack either CGTMSE or the FPO-credit-guarantee cover with the AIF 3% interest subvention.
What kinds of projects can be financed under AIF?: AIF finances two broad project categories. Post-harvest management infrastructure includes supply-chain warehouses, silos, pack-houses, ripening chambers, sorting and grading units, cold-chain assets, primary processing centres, e-marketing platforms and logistics infrastructure. Community-farming assets include organic and bio-stimulant input units, hydroponics, vertical farming, mushroom-cultivation units, custom hiring centres for farm machinery, smart-precision-agriculture equipment, agri-drones for SHGs / FPOs, and infrastructure for nursery and seed production. Composite multi-component projects sponsored by APMCs are also explicitly eligible.
Where can I apply for an AIF loan?: Applications are filed online on the AIF portal at agriinfra.dac.gov.in. The portal hosts a directory of around 150 participating lending institutions — scheduled commercial banks (public, private and small-finance), regional rural banks (RRBs), co-operative banks and select non-banking financial companies (NBFCs) — and a project-cost calculator. The applicant uploads a project report, KYC, land documents and quotations; the State Level Sanctioning Committee and the participating bank then carry out due diligence and sanction the loan in accordance with the scheme guidelines.
Can AIF be used along with other Government of India schemes?: Yes — AIF is explicitly designed to converge with sector schemes. Borrowers can stack AIF with PMKSY-PDMC (Per Drop More Crop) for micro-irrigation infrastructure, SMAM for farm-machinery custom hiring centres, the Mission for Integrated Development of Horticulture (MIDH), the 10,000 FPO formation and promotion scheme, the operational expenses of PMFME for micro food processing, and the Namo Drone Didi scheme (where the balance 20% drone cost not covered by the central subsidy can be funded by AIF). Each scheme retains its own subsidy ceiling and the AIF subvention runs on top of it.
What is the moratorium and repayment tenure under AIF?: AIF loans carry a moratorium on principal repayment of between six months and a maximum of two years from the date of first disbursement, after which the principal repayment commences. The maximum tenure of the loan is fourteen years inclusive of the moratorium. Banks set the actual moratorium length, drawdown schedule and repayment frequency based on the project's cash-flow assessment and the underlying credit appraisal as per RBI norms.
Has AIF been extended after 2025–26?: The original scheme window for fresh disbursements runs through 2025–26 and the interest subvention plus credit guarantee window runs through 2032–33. The Union Cabinet has expanded the eligibility list twice since launch (notably to include community-farming assets in August 2024) and the Government has indicated continued expansion of eligible end-uses in line with the Lakhpati Didi and FPO promotion priorities. Applicants should check the AIF portal at agriinfra.dac.gov.in for the latest list of eligible projects, sanctioned-state cumulative disbursement and notified amendments before applying.

Scheme details summarised from publicly available guidelines on agriinfra.dac.gov.in, agriwelfare.gov.in, NABARD circulars, the CGTMSE scheme document and PIB releases on the Union Cabinet's approval (8 July 2020) and subsequent expansions of the Agriculture Infrastructure Fund. Corpus utilisation, subvention ceilings and eligible-project lists are subject to revision; applicants should verify current terms on the AIF portal before finalising a project report.