Subsidy
Agriculture Infrastructure Fund (AIF)
The Agriculture Infrastructure Fund (AIF) is a Central Sector Scheme of the Ministry of Agriculture & Farmers Welfare that makes medium and long-term loans cheaper for post-harvest management infrastructure and community farming assets: warehouses, cold stores, sorting and grading units, ripening chambers, primary processing and similar projects.
Key features
- Interest subvention: 3% per annum on loans up to ₹2 crore, for a maximum of seven years. Where a loan is larger, subvention is limited to the first ₹2 crore.
- Credit guarantee: cover under CGTMSE for eligible borrowers on loans up to ₹2 crore, with the fee borne by the Government. FPOs can also obtain cover through NABSanrakshan.
- Interest rate cap: lending under the facility carries a 9% interest-rate cap.
- Scheme period: the scheme is operational from 2020-21 to 2032-33.
Who can borrow
- Farmers, FPOs, primary agricultural credit societies, cooperatives, self-help groups, agri-entrepreneurs and startups, among others.
- Projects must be eligible post-harvest or community farming infrastructure. Primary and secondary processing integrated as a single unit can qualify; standalone secondary processing does not.
- AIF is an interest subvention scheme; it does not by itself provide a capital subsidy. It can, however, be combined with capital subsidies from other schemes where those schemes allow it.
Our role
We check that the project fits the eligible activity list, prepare the DPR and loan proposal, and work out how AIF interacts with state incentives such as the UP Food Processing Industry Policy. Ask your bank to confirm that new sanctions are being accepted under the facility before you commit.
Sources
Scheme terms change; verify on the official portal; last checked 2 Oct 2026. This page is general information for planning, not a guarantee of eligibility, sanction or disbursement. See our Terms of Use & Disclaimer.
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