Ultimate Guide to Agriculture Infrastructure Fund Scheme 2025 – Loan, Subsidy, Apply Online
Learn how to apply for loans under the Agriculture Infrastructure Fund (AIF) Scheme 2025. Get 3% interest subvention, credit guarantee & loan up to ₹2 crore.
🏗️ Ultimate Guide to Agriculture Infrastructure Fund Scheme 2025 – Benefits, Loan Process & How to Apply
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🌾 Introduction: Solving India’s Agricultural Infrastructure Gap
In 2025, India’s agricultural sector faces a paradox: record crop production, yet massive post-harvest losses due to poor infrastructure.
The Agriculture Infrastructure Fund (AIF) Scheme is a powerful government initiative designed to bridge this gap by supporting post-harvest management projects and community farming assets.
If you are a farmer, FPO, cooperative, startup, or agribusiness looking to build warehouses, cold storage, sorting units, or supply chain hubs, this guide will help you leverage subsidized loans under the AIF Scheme 2025.
📦 What Is the Agriculture Infrastructure Fund Scheme?
The Agriculture Infrastructure Fund (AIF) is a ₹1 lakh crore central sector scheme, launched in 2020 and extended until FY 2032–33, providing medium- to long-term debt financing for viable infrastructure projects.
Implemented by the Ministry of Agriculture & Farmers Welfare, the AIF scheme offers:
- Interest subvention on loans
- Credit guarantee support
- Streamlined application through a centralized AIF Portal
🧱 Objectives of the AIF Scheme
- Boost agriculture productivity through infrastructure
- Reduce post-harvest losses
- Strengthen supply chains and market access
- Support farmers and FPOs in value addition
🎯 Eligible Activities Under AIF Scheme
| Category | Examples |
|---|---|
| Post-Harvest Infrastructure | Warehouses, silos, cold storages, pack houses |
| Primary Processing Units | Sorting, grading, cleaning, wax coating |
| Supply Chain Logistics | Reefer vans, ripening chambers |
| Modern Farming Assets | Solar pumps, IoT sensors, drip irrigation |
| Export Infrastructure | Pack houses for APEDA-export crops |
👥 Who Can Apply?
The scheme is open to a wide set of agri-ecosystem players:
- Farmers
- Farmer Producer Organizations (FPOs)
- PACS & Co-operative Societies
- Agri-Tech Startups
- Self Help Groups (SHGs)
- Agri-Entrepreneurs
- State Agencies & Federations
💰 Loan & Subsidy Benefits Under AIF
✅ Interest Subvention:
- 3% per annum interest subvention on loans up to ₹2 crore
- Valid for up to 7 years
✅ Credit Guarantee:
- Provided through CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)
- Free for loans up to ₹2 crore
✅ Tenure & Moratorium:
- Loan repayment: up to 7 years
- Moratorium: up to 2 years based on project type
🏦 Loan Process – Step by Step
Step 1: Prepare a Project Proposal
- Outline infrastructure needs, location, capacity, and cost
- Prepare a Detailed Project Report (DPR) with support from NABARD/FPO mentors
Step 2: Apply on AIF Portal
- Visit https://agriinfra.dac.gov.in
- Sign up and fill project details
- Upload DPR and KYC documents
Step 3: Choose Financing Institution
- You can apply through:
- Nationalized Banks
- Cooperative Banks
- RRBs
- NABARD, SIDBI
- Private sector banks
Step 4: Get Loan Approval
- Upon approval, loan disbursed
- Interest subvention applied automatically
- Credit guarantee processed via CGTMSE
🧾 Required Documents
- Aadhaar / PAN card
- Land ownership/lease agreement
- DPR (project report)
- Bank account details
- Caste certificate (for applicable categories)
- Business plan & licenses (for companies/FPOs)
📈 Real-World Example
Maharashtra FPO, Mahagram Agro, secured ₹1.8 crore under AIF to build a cold chain and grading facility. With 3% interest subvention, they saved over ₹10 lakh in interest payments over 7 years. Their income from mango exports rose 4x within one year.
🏗️ AIF Scheme: Key Statistics (As of March 2025)
| Metric | Value |
|---|---|
| Total Loan Sanctioned | ₹41,000+ crore |
| Projects Financed | 60,000+ |
| Average Loan Size | ₹68 lakh |
| Cold Storage Projects | 8,700+ |
| Warehouse Projects | 10,500+ |
🔧 Pros & Cons
| Pros | Cons |
|---|---|
| ✅ Low-interest credit | ⛔ Loan cap of ₹2 crore for subsidy |
| ✅ Wide eligibility (FPOs, farmers, startups) | ⛔ Project proposal preparation needed |
| ✅ Collateral-free up to ₹2 crore | ⛔ Long loan processing for some banks |
| ✅ Long repayment window | ⛔ Limited to agri-specific infrastructure |
🖼️ Visual Suggestions
- Infographic: AIF Process Flow (Apply → DPR → Loan → Interest Benefit)
- Table: Loan Amount vs Subsidy Benefit Comparison
- Map: State-wise AIF Sanction Distribution
- Image: Cold Storage, Warehouses funded under AIF
🔗 Internal & External Links
Internal Links:
- [Agri Clinic and Agri Business Scheme Guide]
- [Solar Rooftop Yojana for Farmers]
- [PM Kisan Credit Card Scheme 2025]
External Sources:
🙋 Frequently Asked Questions (FAQs)
1. What’s the maximum loan I can get under AIF?
There’s no upper cap, but interest subsidy and credit guarantee are applicable only up to ₹2 crore per loan project.
2. Can I apply for multiple AIF projects?
Yes. Entities like FPOs, PACS, or startups can apply for multiple projects in different locations, each eligible for up to ₹2 crore subsidy.
3. What is the interest rate under the AIF Scheme?
- Base bank lending rate – 3% subvention
- Example: If base rate is 10%, you pay only 7% effective
4. Is collateral required?
Loans up to ₹2 crore can be covered without collateral under CGTMSE credit guarantee. Beyond that, bank policy applies.
5. Who approves the project and disburses the subsidy?
The lending institution evaluates and approves the loan. The interest subvention and credit guarantee are managed via AIF portal integrations.
Last modified: July 16, 2025
