Agriculture Infrastructure Fund (AIF): A Complete Guide for Business Owners

Agriculture Infrastructure Fund (AIF)

When it comes to boosting agricultural growth and promoting agribusinesses, the Agriculture Infrastructure Fund (AIF) plays a crucial role. Launched by the Ministry of Agriculture and Farmers’ Welfare, this fund supports post-harvest management projects and community farming assets through affordable financing options.

But what exactly is AIF? How can it benefit your business? And most importantly, how can you apply for it? Let’s break it down.

Who Can Apply for AIF?

The AIF scheme covers a wide range of agricultural business activities. If your project falls under any of these categories, you’re eligible:

Storage Facilities – Warehouses, cold storage, and silos
Post-Harvest Management Units – Sorting, grading, and packaging centers
Primary Processing Units – Rice mills, flour mills, oil mills, etc.
Agri Waste Management – Bio-waste processing and composting units
Vermicompost & Organic Fertilizer Units
Tissue Culture Labs
Supply Chain Projects – Logistics and distribution centers

Benefits of Agriculture Infrastructure Fund (AIF):

Interest Subsidy up to 3% – Lower borrowing costs for up to ₹2 Crores.
Collateral-Free Loans – Relaxed norms for certain borrowers like FPOs and SHGs.
Repayment Flexibility – Loan tenure of up to 7 years, including a moratorium period.
Government-Backed Security – Ensures better trust with financial institutions.
Boosts Post-Harvest Efficiency – Reduces wastage and increases farmers’ income.

How to Apply for AIF?

Prepare a Detailed Project Report (DPR):
- Business plan
- Cost estimates
- Revenue projections
Connect with Banks or Financial Institutions:
- The AIF scheme is linked with major banks and NBFCs.
- Discuss collateral requirements and loan terms.
Online Application:
- Visit the AIF official portal
- Submit your DPR, KYC documents, and bank details
Interest Subsidy & Benefits:
- After loan approval, the 3% interest subsidy is directly credited.
- Additional benefits like credit guarantees for smaller businesses.