🚜 Agriculture Infrastructure Fund (AIF) Scheme: Empowering Farmers with Affordable Loans
- J. Finesse
- Sep 13
- 3 min read
The Government of India launched the Agriculture Infrastructure Fund (AIF) scheme in 2020 to provide affordable loans for farmers and agri-entrepreneurs. The scheme supports the purchase of farm machinery like dozers, ploughs, cultivators, loaders, graders, and post hole diggers, along with building storage and processing facilities such as warehouses, silage units, and cold storages. Its objective is to reduce crop losses, improve productivity, and increase farmer incomes.
👥 Who Can Apply?
Eligible applicants under the AIF scheme include:
Farmers
Farmer Producer Organizations (FPOs)
Cooperatives
Self-Help Groups (SHGs)
Agribusiness startups
Primary Agricultural Credit Societies (PACS)
Other agriculture-based enterprises (e.g., service providers, agri-input suppliers)
🌟 Key Benefits and Features of the AIF Scheme
💰 Total Corpus: ₹1 lakh crore allocated for agricultural infrastructure development.
📅 Loan Tenure: Up to 7 years with a flexible repayment schedule.
📉 3% Interest Subsidy: On loans up to ₹2 crore for a maximum of 7 years.
Example: If bank interest rate is 9%, farmers pay ~6% after subsidy.
🛡️ Credit Guarantee: Collateral-free loans up to ₹2 crore covered under CGTMSE.
🔄 Multiple Projects: Eligible entities can apply for more than one project at different locations.
🕒 Moratorium Period: Repayments begin after 6 months–2 years, depending on project size.
🌱 Sustainability Support: Encourages clean energy adoption and modern farm technologies.
⚙️ What Can Be Financed?
🚜 Farm Machinery
Loans are available for tractors and mechanized equipment such as:
Dozers – Check out AMW’s Tractor Dozer
Ploughs – Check out AMW’s Hydraulic Reversible Plough
Cultivators – Supported under AIF for soil preparation
Seeders – Mechanized planting systems for efficient sowing
Harvesters – Multi-crop harvesters for increased efficiency
Threshers – Machines for post-harvest grain separation
Graders – Check out AMW’s Tractor Grader
Post Hole Diggers – Check out AMW’s Post Hole Digger
Loaders – Check out AMW’s Tractor Loader
🏢 Storage & Warehousing
Cold storages, silos, godowns, warehouses.
📦 Post-Harvest & Processing
Sorting, grading, packaging units, ripening chambers, waxing plants (for fruits/vegetables), and custom hiring centers.
🌾 Silage Units
Facilities for producing and storing silage — preserved fodder critical for dairy and animal husbandry.
🌿 Modern Farming
Greenhouses, hydroponics, aeroponics.
🚚 Logistics
Refrigerated vehicles and transport systems for farm produce.
📡 Precision Agriculture
IoT-based monitoring, AI-powered systems, and smart irrigation.
📊 Impact of the AIF Scheme (as of June 2025)
✅ ₹66,310 crore sanctioned under the scheme.
✅ 1,13,419 projects supported across India.
✅ ₹1,07,502 crore investments made in farm infrastructure.
✅ 2,454 cold storage projects approved to reduce post-harvest losses.
✅ 9 lakh+ rural jobs created, boosting employment opportunities.
📝 How to Apply?
Applications can be made through:
🏦 Participating banks & financial institutions
🏢 NABARD or local agriculture department offices
Application Process:
Register online or through a lending institution.
Submit a project proposal with financial details.
Upload required documents (Aadhaar, PAN, land records).
Select a preferred lender (bank/NABARD).
Track application status online.
✅ Conclusion & Soft CTA
The Agriculture Infrastructure Fund (AIF) scheme is helping Indian farmers adopt modern machinery, storage facilities, and advanced farming practices at affordable costs. With its 3% interest subsidy, collateral-free loans, and long repayment tenure, the scheme makes it easier for farmers and agri-entrepreneurs to invest confidently.
👉 Farmers, cooperatives, and agri-businesses can take advantage of the AIF while modernizing their operations with reliable equipment from Ashok Metal Works.
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