Agriculture Infrastructure Financing Facility (AIF) – Complete Overview

The Agriculture Infrastructure Fund (AIF) is a flagship financing scheme launched by the Government of India to support the creation of post-harvest management infrastructure and community farming assets. The scheme aims to improve agricultural productivity, reduce post-harvest losses, and increase farmers' income through better storage, processing, and value-addition facilities.

Key Statistics

Main Features of AIF Scheme

???? Fund Size

• Total financing facility of ?1 Lakh Crore.

???? Interest Subsidy

• 3% annual interest subvention.
• Available for loans up to ?2 Crore per project.

???? Credit Guarantee

• Credit guarantee available for loans up to ?2 Crore.
• Helps beneficiaries obtain collateral-free financing.

???? Multiple Lending Institutions

Eligible institutions include:

• Commercial Banks
• Cooperative Banks
• Regional Rural Banks (RRBs)
• Small Finance Banks
• NBFCs
• NCDC
• Other approved financial institutions

???? Online Single Window System

• Simplified application process through a digital portal.
• Integrated with participating banks and financial institutions.

???? Project Support

• Dedicated Project Management Unit (PMU).
• Assistance for:
  • Project preparation
  • Documentation
  • Financial planning
  • Loan processing

???? Convergence with Government Schemes

Can be combined with:

• PM Formalisation of Micro Food Processing Enterprises (PMFME)
• Mission for Integrated Development of Horticulture (MIDH)
• National Horticulture Board (NHB)
• PM Kisan Sampada Yojana
• Other Central Government agriculture schemes

Eligible Beneficiaries

The following entities can apply:

Individual Farmers

• Small farmers
• Marginal farmers
• Progressive farmers

Farmer Organizations

• Farmer Producer Organizations (FPOs)
• Farmer Producer Companies (FPCs)

Agricultural Entrepreneurs

• Agri-startups
• Agri-business firms
• Rural entrepreneurs

Cooperatives

• Cooperative societies
• Multi-state cooperative societies

Self Help Groups

• SHGs
• SHG Federations

Government and Semi-Government Institutions

• State agencies
• Agricultural marketing boards
• Panchayats

Infrastructure Covered Under AIF

Storage Infrastructure

• Warehouses
• Godowns
• Silos
• Cold Storage Units

Processing Infrastructure

• Food Processing Units
• Sorting and Grading Units
• Packaging Centers

Supply Chain Infrastructure

• Collection Centers
• Aggregation Centers
• Distribution Hubs

Primary Processing Facilities

• Rice Mills
• Pulse Processing Units
• Oil Extraction Units

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