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Agriculture Infrastructure Fund

  • Integrity Education, Delhi
  • 09, Jul 2021
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Why in news: Cabinet decision to include State Agencies/APMCs, National and State Federations of Cooperatives, Self Help Groups (SHGs) and Federation of Farmers Producers Organizations (FPOs) in in the ‘Agriculture Infrastructure Fund’

Aim of AIF: To provide medium - long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets.


  • PrimaryAgricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations(FPOs)
  • Self Help Group (SHG), Farmers, Joint Liability Groups (JLG), Multipurpose Cooperative Societies
  • Agri-entrepreneurs, Startups and Central/State agency or Local Body sponsored Public Private Partnership Projects.

Participating institutions

  • All scheduled commercial banks, scheduled cooperative banks, Regional Rural Banks (RRBs)
  • Small Finance Banks Non-Banking Financial Companies (NBFCs) and National Cooperative Development Corporation (NCDC)


  • Rs. 1 Lakh Crore to be provided by banks and financial institutions as loans 
  • Interest Subvention: Loans will have interest subvention of 3% per annum up to a limit of Rs. 2 crore. 
  • This subvention will be available for a maximum period of seven years.
  • So far, loans up to Rs.2 crore at one place were eligible for interest subvention under the Agriculture Infrastructure Fund Scheme.
  • Now if an eligible entity takes up projects in different locations, all such projects will be eligible for interest subvention for loans up to Rs.2 crore.
  • There will be a maximum limit of 25 such projects.