Agriculture Infrastructure Fund, which is a part of India’s Aatmanirbhar Bharat Package has been launched by PM Narendra Modi with a finance facility of Rs. 1 Lakh Crore for the next 4 years. Under the Agriculture Infrastructure Fund, the central government would bear about 3% interest subsidy per annum on the loans provided.
The scheme is aimed at enabling the farmers to get greater value for their produce as they will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition.
Agriculture Infrastructure Fund Loan
A loan of up to Rs. 2 Crore will be provided under the Agriculture Infrastructure Fund.
Who can avail of the loan?
The loan will be provided by the banks across the country to all the eligible beneficiaries which include.
- Primary Agriculture Credit Societies (PACS)
- Marketing Cooperative Societies
- Self Help Groups (SHG’s)
- Farmer Producer Organizations (FPO’s)
- Joint Liability Groups (JLG)
- Multipurpose Cooperative Societies
- Agri – Entrepreneurs
- Agriculture Startups
- PPP Agriculture Projects sponsored by central / state agency or urban local body
Within 30 days of formal approval of the scheme, the central government has already sanctioned over Rs. 1000 Crore to over 2,280 farmer societies across the country.
How to Apply for Loan Under Agriculture Infrastructure Fund
Farmers and the entities listed above will be able to avail the loan of up to Rs. 2 Crore from the nationalized banks, commercial banks, or any other financial institutions as empaneled by the government for the scheme.
Following is the list of Banks with which the Ministry of Agriculture and Farmer’s Welfare has already Signed MOU’s for the finance facility under the Agriculture Infrastructure Fund.
List of Banks for Loan
|UCO Bank||Indian Bank|
|Bank of Maharashtra||Canara Bank|
|State Bank of India||Union Bank of India|
|Punjab National Bank||Bank of India|
|Central Bank of India||Bank of Baroda|
|Indian Overseas Bank||Punjab and Sind Bank|
List of Banks for Loan Under Agriculture Infrastructure Fund
List as on 13 August 2020, however, the latest list can be obtained from the official website at http://agricoop.nic.in/
Eligible beneficiaries can also apply directly for availing financing facilities under this scheme. There is no requirement of prior scrutiny at any level. Such applications may be considered by the banks at their level. Timely MIS for such applications shall be made available by respective banks to DLMC (District Level Monitoring Committee) and SLMC (State Level Monitoring Committee).
What Type of Projects are Eligible for Loan
The scheme will facilitate setting up and modernization of key elements of the value chain including
Post Harvest Management Projects like:
1. Supply chain services including e-marketing platforms
4. Pack houses
5. Assaying units
6. Sorting &grading units
7. Cold chains
8. Logistics facilities
9. Primary processing centers
10. Ripening Chambers
Viable projects for building community farming assets including
1. Organic inputs production
2. Biostimulant production units
3. Infrastructure for smart and precision agriculture.
4. Projects identified for providing supply chain infrastructure for clusters of crops including export clusters.
5. Projects promoted by Central/State/Local Governments or their agencies under PPP for building community farming assets or post-harvest management projects.
Agriculture Infrastructure Fund Loan Benefits
There are always some benefits of availing loan under any government schemes, and that’s why there are loan schemes by the government. Hence, below are some of the main benefits to be provided under the Agriculture Infrastructure Fund loan scheme
- The maximum loan tenure under the scheme will be 7 years.
- Interest subvention of 3% per annum on the loan availed under this scheme.
- Credit guarantee coverage under CGTMSE scheme for loans up to Rs. 2 Crore.
- The fee for this coverage will be paid by the Government. In the case of FPOs, the credit guarantee may be availed from the facility created under the FPO promotion scheme of DACFW.
The Agriculture Infrastructure Fund Loan Scheme will support farmers, PACS, FPOs, Agri-entrepreneurs, etc. in building community farming assets and post-harvest agriculture infrastructure.
Agriculture Infrastructure Fund – State Wise Allocation
Tentative state / UT wise allocation of Agriculture Infrastructure Fund
|State / UT||Allocation in INR Crore|
|Jammu & Kashmir and Ladakh||900|
|A & N Islands||40|
|Daman & Diu||22|
|Dadra & Nagar Haveli||10|
State / UT Wise Tentative Allocation of Agriculture Infrastructure Funds
Agriculture Infrastructure Fund – Guidelines
The complete guidelines of the Agriculture Infrastructure Fund Scheme can be downloaded in PDF format from the official website of the Ministry of Agriculture and Farmer’s Welfare using the below-given link.
Implementation Period of AIF Scheme
The Scheme will be operational from 2020-21 to 2029-30. Disbursement in four years starting with the sanction of Rs. 10,000 crore in the first year and Rs. 30,000 crore each in the next three financial years. The moratorium for repayment under this financing facility may vary subject to a minimum of 6 months and a maximum of 2 years.
Frequently Asked Questions
How to apply for Agriculture Infrastructure Fund loan
Any eligible farmer or entity can apply for AIF loan through the banks and financial institutions empaneled by the government.What is the loan amount under the AIF loan scheme
Up to Rs. 2 CroreWhat is the Interest Subsidy on Loan
3% per annumWho can apply for Agriculture Infrastructure Fund loan
Farmers, Primary Agriculture Credit Societies (PACS), Marketing Cooperative Societies, Self Help Groups (SHG’s), Farmer Producer Organizations (FPO’s), Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri – Entrepreneurs, Agriculture Startups and PPP Agriculture Projects sponsored by central / state agency or urban local body can apply for this scheme.What is the maximum loan tenure under AIF scheme
7 Years Which bank to approach for AIF loan application
As of 13th August 2020, you can approach any of the following banks: UCO Bank, Indian Bank, Bank of Maharashtra, Canara Bank, State Bank of India, Union Bank of India, Punjab National Bank, Bank of India, Central Bank of India, Bank of Baroda, Indian Overseas Bank and Punjab and Sind Bank
For more details, please visit the official website of Ministry at http://agricoop.nic.in