Agriculture Infrastructure Fund – How to Apply for Loan

Agriculture Infrastructure Fund is a new 1 Lakh Crore financing facility launched by Narendra Modi Government on 12th August, know how to apply for loan under Agriculture Infrastructure Fund scheme, who can apply and where to apply, also download the Agriculture Infrastructure Fund scheme guidelines in PDF format
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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 the loan?

The loan will be provided by the banks across the country to all the eligible beneficiaries which includes.

  • Farmers
  • Primary Agriculture Credit Societies (PACS)
  • Marketing Cooperative Societies
  • Self Help Groups (SHG’s)
  • Farmer Producer Organizations (FPO’s)
  • Join 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 BankIndian Bank
Bank of MaharashtraCanara Bank
State Bank of IndiaUnion Bank of India
Punjab National BankBank of India
Central Bank of IndiaBank of Baroda
Indian Overseas BankPunjab 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 facility 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
2. Warehouses
3. Silos
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. Bio stimulant 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

  1. The maximum loan tenure under the scheme will be 7 years.
  2. Interest subvention of 3% per annum on the loan availed under this scheme.
  3. Credit guarantee coverage under CGTMSE scheme for loans up to Rs. 2 Crore.
  4. The fee for this coverage will be paid by the Government. In case of FPOs the credit guarantee may be availed from the facility created under 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 / UTAllocation in INR Crore
Uttar Pradesh12831
Rajasthan9015
Maharashtra8460
Madhya Pradesh7440
Gujarat7282
West Bengal7260
Andhra Pradesh6540
Tamilnadu5990
Punjab4710
Karnataka4525
Bihar3980
Haryana3900
Telangana3075
Kerala2520
Odisha2500
Assam2050
Chhattisgarh1990
Jharkhand1445
Himachal Pradesh925
Jammu & Kashmir and Ladakh900
Uttarakhand785
Tripura360
Arunachal Pradesh290
Nagaland230
Manipur200
Mizoram196
Meghalaya190
Goa110
Delhi102
Sikkim56
Puducherry48
A & N Islands40
Daman & Diu22
Lakshadweep11
Dadra & Nagar Haveli10
Chandigarh9
Total1,00,000
State / UT Wise Tentative Allocation of Agriculture Infrastructure Funds

Agriculture Infrastructure Fund – Guidelines

The complete guidelines of Agriculture Infrastructure Fund Scheme can be downloaded in PDF format from the official website of Ministry of Agriculture and Farmer’s Welfare using the below given link.

http://agricoop.nic.in/sites/default/files/FINAL%20Scheme%20Guidelines%20AIF.pdf

Implementation Period of AIF Scheme

The Scheme will be operational from 2020-21 to 2029-30. Disbursement in four years starting with sanction of Rs. 10,000 crore in the first year and Rs. 30,000 crore each in next three financial years. Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and 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 AIF loan scheme

Up to Rs. 2 Crore

What is the Interest Subsidy on Loan

3% per annum

Who 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), Join 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

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