Agri-Business Growth Simplified: Get AIF Loans & Subsidy

The Agriculture Infrastructure Fund (AIF) is a landmark initiative by the Government of India, designed to modernize the agriculture sector and boost farmer incomes. With a ₹1 Lakh Crore budget, the scheme provides low-interest loans, credit guarantee cover, and subsidies for agri-infrastructure projects. KIP helps entrepreneurs and farmers navigate the AIF process, turning ideas into profitable, sustainable agri-business ventures.

Introduction: Empowering India’s Agri-Entrepreneurs

India’s agriculture sector is undergoing a major transformation—and the Agriculture Infrastructure Fund (AIF) stands at the heart of it. Launched in 2020 by the Government of India, this ₹1 Lakh Crore financing initiative by the Ministry of Agriculture and Farmers Welfare aims to revolutionize the agricultural value chain, promote modern farming practices, enhance post-harvest management, and strengthen rural entrepreneurship.

Whether you’re a farmer, agri-entrepreneur, food processor, or investor, AIF offers a golden opportunity to build world-class infrastructure, secure low-interest loans, and unlock government-backed financial incentives, enabling long-term growth, sustainability, and profitability.

With AIF, India is not just cultivating crops—it’s cultivating innovation, efficiency, and profitability for every stakeholder in the agri-ecosystem.

What Is the Agriculture Infrastructure Fund (AIF)?

The AIF is a credit-linked financing scheme designed to boost post-harvest management, value addition, and agricultural infrastructure. It promotes collaboration between farmers, bankers, and agri-entrepreneurs to create a sustainable and profitable agricultural ecosystem.

Through this initiative, businesses can access affordable finance from public sector banks, private banks, NBFCs, and cooperative institutions to build modern agri-facilities.

Eligible Under AIF

The Agriculture Infrastructure Fund supports a wide range of projects that improve agricultural efficiency and value addition. If your business contributes to the agri value chain, it can likely qualify for AIF assistance.

Eligible Project Categories:

Storage & Warehousing: Cold storages, warehouses, grading units, and ripening chambers.
Primary Processing: Units for cleaning, grading, and processing crops such as rice, cotton, sugarcane, bamboo, jute, fruits, and vegetables.
Waste & Biomass Projects: Biomass energy, agri-residue management, briquettes, pellets, and compressed biogas (CBG).
Agri E-Market Platforms: Online or tech-based platforms for marketing and trading agri-produce.
Allied Farming Activities: Vermicomposting, beekeeping, honey processing, nurseries, tissue culture, and seed production.

Who Can Apply for the AIF Scheme?

AIF is open to a wide category of applicants engaged in agriculture or allied sectors, including:

Individual entrepreneurs or farmers
Proprietorship & partnership firms
Private limited companies & LLPs
Farmer Producer Organizations (FPOs)
Self-Help Groups (SHGs)
Agri Start-ups & Cooperatives

Financial Benefits of the AIF Scheme

The AIF scheme offers powerful financial incentives designed to make credit affordable and help agri-entrepreneurs scale faster:

3% Interest Subsidy – Enjoy a 3% interest subvention on term loans up to ₹2 crore for a period of 7 years.
Collateral-Free Loans – Reduced collateral requirement with government credit guarantee cover.
CGTMSE Coverage – Loan guarantees are backed by the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).
Refund of Guarantee Fees – The CGTMSE fee can be refunded, reducing total project cost.
Multiple Project Benefits – Get coverage for up to 25 projects (₹2 crore per project) in different locations.
Scheme Validity – Extended until March 31, 2026, with benefits valid up to March 31, 2033.
Stackable with Other Schemes – Combine AIF benefits with state and central government subsidies, such as MNRE, NABARD, or RIPS.

How KIP Can Help You

Navigating government schemes like AIF requires expertise, precision, and documentation excellence. KIP specializes in subsidy consultancy, project feasibility reports, and end-to-end AIF assistance—helping you secure funding faster and maximize your incentives.

Our experienced consultants ensure:

Seamless project report preparation
Accurate financial documentation
Direct coordination with banks & PMU
100% compliance with AIF guidelines

Frequently Asked Questions (FAQs)

Q1: What is the Agriculture Infrastructure Fund (AIF)?

The AIF is a ₹1 Lakh Crore government initiative launched in 2020 to provide low-interest loans, credit guarantees, and subsidies for agri-infrastructure and post-harvest projects.

Q2: Who can apply for AIF benefits?

Eligibility includes individual farmers, proprietorships, partnerships, companies, LLPs, FPOs, SPOs, and Self-Help Groups (SHGs) engaged in agriculture or allied sectors.

Q3: What types of businesses are covered under AIF?

Projects include cold storage, warehouses, primary processing units, biomass energy, e-marketing platforms, vermicomposting, honey processing, tissue culture, and nurseries.

Q4: Can existing loans apply for AIF benefits?

Yes, loans taken after 2020 can be linked to AIF to claim remaining interest subsidies for the loan tenure.

Q5: Can AIF benefits be combined with other government subsidies?

Yes, AIF is stackable with central and state schemes, such as capital subsidies, MNRE incentives, and stamp duty refunds

Q6: Where can I get professional guidance for AIF?

KIP provides end-to-end assistance, from project report preparation to bank coordination, helping you maximize AIF benefits and secure funding.