Agriculture Infrastructure Fund (AIF)

Brief
The Agriculture Infrastructure Fund (AIF) is a Central Sector Scheme launched in 2020 (running till 2032-33) to provide medium-to-long-term debt financing for post-harvest management and community farming projects

Objectives
The objectives are to mobilize investment in post-harvest management infrastructure and community farming assets, while simultaneously reducing losses, minimizing intermediaries, and enhancing farmer income through better value realization

 Eligibility Criteria
- Minimum age 18 years
- Individual Farmers and Agri-entrepreneurs
- Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Joint Liability Groups (JLGs)
- Agricultural Produce Market Committees (APMCs), State agencies, and Public-Private Partnership (PPP) projects sponsored by central/state/local bodies
- Agri-Startups and small/medium-scale secondary processing units (if integrated with primary processing)

 Benefits
- A total of ₹1 lakh crore will be disbursed as loans through banks and financial institutions
- Interest rates are capped (typically around 9% annually) to ensure farmers receive benefits directly
- Repayment tenure ranges from 7 to 10 years, including the moratorium period
- Interest subvention for private entities is limited to a maximum of 25 projects in different locations
- 3% annual interest subvention is provided on loans up to ₹2 crore for a maximum of 7 years
- Collateral-free loans up to ₹2 crore are guaranteed through the Credit Guarantee Fund Trust for Micro and Small Enterprises CGTMSE or NAB Sanrakshan for FPOs
- Repayment offers flexibility with a moratorium period ranging from 6 months to 2 years